New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-09-29
FESTERN UNION TAXES.
,cisroN IN FAVOR OF THE STATE.
MORE TRAY 1HE HUNDRED AND sEvENTY-EIGHT
THOUSAND DOLLARS DOE--THE REFEREES con-
ILLUSIONS OF FACT AND LAW.

MOiE THAI I'VE HUNDRED AND SEsENIr-Eluhi
THOUSAND DOLLARS D0E--THE REFEREES con-
CLUsroNs OF FACT AND LAW.
ALBANY, Sept. 2S.-Judge Samuel Hand,
Referee In the suit brought by the State against the
Western Union telegraph Company. has rendered de-
cIson In favor of for S178397 20. This sum
is for the taxes for orly year, but determines
the remaiuing taxes in favor OF tho State,
making tho total amount recoverable, under the
decision, from the company about 100000 Fol-
lowing the principal points In the decision
find, as matters OF fact:
Ffrst--Tbat lae Western Union Telegraph Com
day of November, 1881, make cash dividends
amounting to per csntuW upon the par value q It's
Second~That the said defendant made report to
the Controller OF the state, stating the amount
centum q the cash dividends dec lsg,
but neglected pay within fteen days after the LIST
Of January 1884, into the Treasury Of the state the
x sna or ay % 5 he ss s
60 that the 10 per centgm upon the SAD tax
$4,000.
T1ird-The Western Union Telegraph Company, in adj
dltlon to the dividend declared during the year
ending tue 1st OF November 1884, stock dividend
from Ino Ot 0s Oh by he
papy a1s RssSG 3 eaF S9 ans wS
conceded by the counsel for the defendant the argu
msnt to have been only $143914s7 81 the LIST day
OF June 1850 when t5s method o. taxation rs pO ot
date of amount divided.
E0rThere was another dividend declared on or about
81 OF February the stock or the company TO
the OF 800 600 which dividend distributed
earnings Of the defendant made before July 1873 In the
stock Of the Atlantic and Pacific Telegraph Company
find part OF the said dividend to have been made or
represented any earnings Of the company made
since the first day Of June 1880
Ffut-AnoLher dividend was made on or about the
third day Of February 1881 in stock OF the defendant
TO the earnings OF the made before
sirth-That Inc additional dividend found to
have been made by the third finding above. Is
tax according to statute amounts to S2S,377 90:
that tho defendant never has paid the same into the
neglected to since ths 18th day of January. 1882;
that 10 per centgm thereon to be collected herewith
CONCLUSIONS OF LAW.
and as conclusions OF law:
First-That the said acts Of 1880 and 1881 imposed
new and different system OF taxation upon the de-
tOOre existing To telegraph companies that by said
acts the defendant was subjected to a upon its
the whole capital stock for every per cennm Of dvi-
dend declared during the whenever these dividends
OF capital Invested within State.
Seeond-That the defendant ha; become liable to pay
10 per centum or said tax poseby the said acts In case
Of neglect or refusal TO pay such tax within
fifteen days after the first day Of January. 1884
Thrd-Tha fl accordance with decision of the Court
OF Appeals the only part OF the dividend Of 526 800
10 stock, declared March 20, 1881, to be estimated the
OF 1880 and 1881 is the sum OF 62 declared
from the earnings and PROFITS made by the company
since the Law TOOK effect June l, 1850.
POuth-Altn0ugh this last part OF the dividend docs
not amount 20 per cent upon the then capital stock
yet conclude the tax Is 10 be the rate OF Onequarter
OF mill for each per centum Of such dividend be-
the entire dividends declared during the year. in
GLIDING the cash dividend, make together more than
per oentum either upon the original capital stock
100000, or the subsequent capital stock SSOOOO,-
600
Ftnh-No part Of the dividend in stock exchanged
for the Atlantic aud Pacific Telegraph COmpanys stock
be taken any basis for taxation OF the Franchise
under tho acts OF 1850 and 1881 that stock
chased with earnings made before the date OF these
and does not seem to have permanently increased in
value since 1879 but has been exchanged about the
basis Of value existing III November, 1879.
Sereah-I lind tue plaintiff Is entitled to from
the defendant the sum Of S1l97l8 &C. with interest
thereon from the 18th day OF January, 1885,
also the of $12,000i also the sum OF $685.
377 80 with interest thereon from the 18th
day OF January, 1892 and the OF 1897 76
and direct judgment in favor or the plaintiffs against
the defendant for the aggregate sum OF $l6I933 SO
principal and SIG 463 % interest, making total or
S17S,307 90, with costs OF the action