Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-11-14
A BIG TAX TEST CASE.
The County Commissioners and
Assessors Collide
WITH TWO BIG CORPORATIONS.
Jones & Laughlins, Limited, and the Dol
lar Savings Bank
OBJECT TO THE THREE MILL TAX


The County Assessors have as yet not
made much progress, at least but little has
been reported at the County Commissioners
Office, but Assessor Joseph M. Wilson has
already run against two snags in the Second
ward. Jones'& Laughlins' Limited, and the
Dollar Savings Bank objected to throwing
up their hands, fgurstively speaking, and
though the precise objection is not very
definitely stated as yet, it appears they
claim that under the act of June 1, 1889,
they are exempted by the twenty-frst sec
tion from making the return demanded by
the local assessor, but are smenable to the
State only In a precept issued by the
Auditor General for the guidance of Asses
sors and County Commissioners is found the
following:
THE LAW QUOTED.
Assessors and County Commissioners should
notice the difference between the act Of June
/ lSSe, under which taxes for State purposes
are now TO be assessed and collected, and the
act Of June so, 1856. under which they have
been previously assessed and collected Under
the latter act the mortgages, judgments, securi-
ties and moneys owing corporations by solvent
debtors could not be taxed, but under the act
of June l. 1889 they are all made subject to
taxation at the rate of mills on each dollar OF
the value of the same, the exceptions being
that the act does not apply to notes discounted
or negotiated by any bank, banking institution,
savings institution or trust company, nor to
building and loan associations, nor does it tax
the mortgages judgments and other securities
,F limit ms nd
stock associations that pay a capital stock tax
TO the Commonwealth directly, providing such
mortgages, judgments and other securities
constitute a portion of their assets included
within the apprlsed value OF their capltal STOCK
uTOn which tax Is paid to the Common
wealth.
AMOUNTS BEYOND CAPITAL STOCK.
Whatever a corporation, limited partnership
or Joint stock association has in the way of
mortgages judgments and moneys due it from
solvent debtors over and above what enters the
valuation of the capital stock upon which tax
is paid by it to the Commonwealth directly,
should be returned to the assessor for purposes
of taxation. as also all judgments. mortgages
and other securities held in iduciary cspaci-
ity or not otherwise excepted.
Corporations limited partnerships and joint
stock associations organized exclusively for
manufacturing purposes, excepting companies
engaged in brewing and distilling and compa-
nieS that enjoy and exercise the right OF emil
nent domain, are exempted from the payment
of capital stock tax to the Commonwealth;
and whatever mortgages, judgments, moneys
due from solvent debtors or Investments they
own, have or hold, should be returned to the
assessor for taxation; and in all cases where
they refuse or neglect to make such returns the
assessor should estimate return as in the case
of individuals, to which estimated returns the
proper Board of County Commissioners or
Board of Revision of Taxes should add 50 per
ceutum as the penalty for neglect to make the
return.
THOSE INTERESTED CAN PICK OUT.
To give the instructions in full is unnec-
essarY, as the reader who is interested, and
all are, can pick it out of the sections above
quoted.
Under the old act savings banks were not
required to make return to the local assessor
and, in constituting the provisions of the last
act, Assessor Wilson and the Dollar Saw
ings Bank do not agree. The controversy,
however, between the corporations noted
and the assessor is not acrimonious, but it is
necessary that it be settled amicably never
theless.
The matter of particular interest to the
County Commissioners is this: They must
provide for the cost, and in making their es-
innate they want to get as near right as pos
sible. They do not want to run the risk of
putting the county into the soup.
WHAT TAXPAYERS MUST PAY ON.
The return of personal property taxpayers
are required to make includes all loans or
shares of stock owned by you Of a railroad
company chartered and doing business out
side of Pennsylvania; also, the same class of
securities owned by you of manufacturing,
mining and other companies chartered by
and doing business in other States; also,
mortgages, judgments and other securities
of saving fund institutions of this or other
States that do not have a capital stock;
also mortgages, judgments and other securi-
ties of mutual insurance companies of this
or other States; also, mortgages, judgments
and other securities of any corporation, lin
tied partnership, or joint stock association
of this Commonwealth, or that operates and |
does business in this Commonwealth, which \
does not pay a capital stock tax to the Com |
monwealth. This will include mortgages.
judgments, investments and moneys due and |
owing to all corporations, limited partner |
ships and joint stock associations organized |
and engaged In any manufacturing business |
Of whatever kind or nature it NAV be.
1t is held that the Dollar Savings Bank /
has no capital stock. The per cent tax on
its SIS, ,OOO, 600 of mortgages. securities. etc
would be something like $40, 900, and were
the Commissioners in default of return to
add 90 per cent, as they would have power
II 1t be shown that a return should be made /
TO them would aggravate the matter to the
extent Of S15, coo or S17, 600, and the sicuif-
canoe when all the county is canyassed be-
comes very great
The attorneys of the corporation named
conferred at length with the Commissioners
yesterday, and County Solicitor Gever's at
tention was called to the matter. He stated
that he wasn't ready to give an opinion. but
seemed to think the meaning of the law
would not be difficult to reach. 1t is nro.
posed to get up an amicable test case and
have the matter settled by the Court as soon
Gs possible, so that the work of making as
sessments shall not be delayed,
.. BIG MONEY FOR COUNTIES
What makes the case peculiarly interest
ing TO the county is the information con-
veyed in she closing paragraph of instrnc-
tions from the Auditor General, which reads
thus:
AS the several counties of the Comuon-
wealth are entitled to have returned to them |
under the act of June l. 1889 one-third of the
tax as per statement made by them 10 the S+s+o |
Board Of Revenue Commissioner it is boned !
that county commissioners and assessors will |
be vlgilant in securing full and proper returns |
from all taxable persons, corporations firms
partnerships, limited partnerships and Joint
stock associations.
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Several years ago Chamb erIain & Co of
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