New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-07-28
A BANKING DECISION.
DIVIDENDS. DECLARED DURING THE LA5C FIVE
MONTHS OF 1870 NOE TAXABLE.

DIVIDENDS. DECLARED DURING THE LA5r FIVE
MONTHS OF 1870 NOT TAXABLE
In the case of the National Park Bank of
New.York agt. Marshall B. Blake, AZ Collector OF In
ternal Revenue for the XXXGId Collection District of
the state Of New-York. action was brought IN the
United states Circuit Court 20 recover 1851 cs PAID
under protest as tax dividend declared by the
plaintiff. The case submitted 10 Judge SAipman
upon the following agreed statement 4 facts
On Dec. l6 1870, the plaintiff declared dividend OF
s236 ~ from It's earnings, incomes. and gains. which
dividend was by the terms OF lts DECLARATION made
payable 70 stockholders or Dec ~ 1870 ana Nas, prior
to the assessment hereinafter mentioned PAID 10 me
several shareholders en1tIel 10 receive Ine 7aule
Neither the tax Of p per cent hereinafter men
toned nor any other AK "Aasoeysr vas M
said dividend the payment thereof TO- stockholders
The earnings, incomes and gains Accrued from dy l.
1870 70 D-c 81 1910 inclusive Ou Dee 40, g. e.: W..
plaintiff paid TO the Epcever Of Taxes OF the CITY ana
County OF New-YorE the sum Df s26 ~ ~ as ana Iot
the CITY County and STATE tax OF tHe ny Conn anu
STATE Of NewYork, al imposed by law upon me sh.tlss
which payment made for the account ana on Dcha
Of tAe stockholders IN that bank and which amount
unless pad AS taxes, would nave Deeh pau 10 7Ioch
holders as a par. Of the dividend declared on Dec l6.
1870. The taxes were pad with money taken from
the undivided Prohts "AeA Accrued anu "grT
rom july Co. Dee IL $50 Inc Assessor y! 10
Revenue tor the XXXLId Collection District OF New
York dd. On June 20 Lsl assess against tne piane =
tax oi y per cent on ne sesSIA' ~, - NJ t
sl23,O76 y and s-672O 90 Tle aggregate Oh winch
amounts ~ taxes assessed was 1881 %.
o. June 20 ISL aud ever since tHat Tune, ths Iieen
held ana now holds the Office Of Collector OF Internal
y
New York. and then performed and now performs the
duties OF SAID Office On June 80, 1871 the defendant as
such Collector, demanded from the p.antH Tue Pay
ment ASSESSED aforesaid ainO untlng 10
1881 %. and that day tine plautn was COM
PEELED 20 ana did under protest pay tAat sum 10 the
defendant, vino received the
On July u, 18Th. the plaintiff, according 20 the pro
visions Of that regard and the regulations or te
Secretary Treasury pursuance thereof TOOK an
aupeal 10 the Commissioner Of Internal Revenue from
the aforesaid and collection, and demanded
rho return 1891 On Oct. 2. 1871 the Commits
sOner r. DECIDED the appeal adversely
10 the pia.ntlh.
The plaintiff claims that. under the act Of July H. 1870
a. ; stats at Large. vol &c, p 2jj dividends VI earn
ings income ami gains which were declared by banks
during the last months OF 1870 not taxable. III
decision given yesterday in tuls Judge Shipman
upholds the plaintiffs claim. aud SAYS Let Judgment
be entered TOR The plaintiff for the amount of taxes PAID
upon the dividends and surplus earnings as specified IN
the statement OF facts with interest from the dates OF
payment Francis C. Barlow Tor the plaintiff, and
United states DistrctAt0ruey Bliss for the defendant
In the case OF the Fourth National Bank Of the CITY Of
Nsv.York agt Marshall B. Blake as Collector de-
c.son with the exception OF amounts upon Ike stare
ment of facts was given in favor Oh the pA!nIA io
,g775 II.