The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-01-17
ONE OF NIX. ETIRTs's CASES.

WASHINGTON, Jan. some years ago
the New York Central and Hudson River Rail
road Company increased its capital stock from
$50 900 900 to 1920 900 600 by the issue OF stock
dividend Of 100 per cont on the ground that
the property Of the road had doubled in value
and that its earnings were sufficient to pay tho
maximum legal dividends upon such increased
amount
The internal revenue officers promptly asscss-
ed such stock dividend as n division of accu-
fnulated profits. upon which railroads were
bound under the law TO pay an internal tax
The railroad company refused to pay, and their
property was dstraincd. The tax amounting
10 sluO0OD. was then paid under protest
and the railroad company Immediate
y brought suit for recovery. Judgment
was given against the United States. The Gov
ernmcnt appealed the case to the supreme
Court Of the United States. and this tribunal
unanimously decided that the tax was properly
due. reversed the decision Of the Court below.
and ordered new trial before the Circuit Court
Of the United States at Albany.
The railroad company for reasons Of It's own
has caused the new trial Of the case to be post
poncd from term to term. and the United States
has been unable to prevent such repeated post
ponements. At last, in the summer Of 1877. a
stipulation WIS entered into. and made part Of
the record of the court. signing a certain day
jan l6. 1878. for the trial Of this cause. and
agreeing that there should be no further post
ponement
Notwithstanding this agreement Of record.
the railroad company sought 10y various pre-
texts To secure further delay.
Naturally 1t would be presumed that the Gov
crnment. having the money already. would
be- indifferent to the postponcmcnt of
suit to recover. and that the company
would b. anxious for an early decision.
In this instance. however. the United States il
anxious for a speedy termination ofihe suit. be-
cause it has another claim against the same
company for three-quRrters Of n million more
which stands in allowance until the present case
| shall be finally disposed 81. There are other
reasons. known only TO the law officers Of the
Government. why the public interests require
| speedy action.
For the same reasons and others. the railroad
socks delay. Among these other reasons is
the possible one that the present District Attor-
ney OF the Northern District Of New York
who is familiar with the case. and whose
| fidelity to the Government has been tried and
| proved. oven against the New York Central and
Hudson River Railroad Company. is expected
to retire on the 4th Of March next and that a
| friend Of Mr.. William VI. Evar:s Is to be ap-
| pointed TO tho position.
Evarts. southmayd 4 Choate nre the attor-
| neys Tor Tie railroad company in this suit.
| 1t appears that on Saturday last an order was
issued 10y Attorney General Devens. at tho re-
quest Of Mr.. Evarts. directing District Attorney
| Crowley TO assent 10 a further postponement Of
the trial of the auit Of the New York Central and
Hudson River Railroad Company against the
| United States. heretofore assigned for to-day.
Inquiry further develops the fact that Mr..
Evarts had likewise made a request 10 the Sec
rotary Of the Treasury 10 consent 10 such order
and that the Secretary partially promised Mr..
| Southmayd that he would consider the sub
Iert, while the Attorney General fully promised
Mr.. Choate that the request should be complied
with.
II further appears that neither the Internal
Revenue Bureau. which. under the law. has ex-
elusive charge Of suits Of this character nor the
District Attorney Immediately in charge Of the
case. was consulted in the matter. or even in
formed OF the fact Of the postponement of the
trial until rumor Of such action reached
them through the counsel for the other side.
and that the District Attorney upon such ru-
NOR. and prior 10 the receipt Of his instructions.
teegraphcd 70 the department his earnest pro-
test against postponement. upon the ground
that the public interests would be injured
thereby. and that such protest was reiterated
| by the Commissioner Of Internal Revenue, but
| without avail