Year: 1871

ing bulletin was posted to-day at the
door of the Vice Presidents room
1.-THE Vice President slept better
than on any night since he was attack
ed. He is able to sit up while at a
time and now only needs strength, which
he is recovering, though slowly.


The Vice Presidents condition to,
night is very gratifying. He is improv-
ing rapidly, and it is thought his con-
dition will permit of his removal to his
home on Wednesday or Thursday.


The New York Central Tax.


Secretary Boutwell, has rendered de-
cision against the New York Central
railroad in the case of the tax on script
dividend and has ordered the collection
Of the tax Immediately.


Treasury Balances.


The following are the balances at
the close of business to-day: Currency,
S7,3S0,000; coin, S92, ,266, 900; Of which
81, $4,000 were coin certificates.


PIeasantoh's Decision I'm the New
+ York Central Railroad Case.


General Pleasanton to-day rather un-
expectedly promulgated his decision
in the great New York Central railroad
case. The decision was against the
road and instructed the Collector TO
take immediate steps to collect the tax
and is based entirely on the showing Of
the road as follows:


The preamble to the resolutions un-
der which the road is sued on this scrip
dividend reads:


WHEREAS, This company has here
tofore expended OF its earnings for the
purpose Of constructing and equipping
its road, and in the purchase Of real
estate and other properties with view
to an increase OF its traffic monies
equal in amount to eighty per cent OF
the capital stock Of the company; and


WHEREAS, The several stockholders
ofthe company are entitled to evidence
Of such expenditures and to the reim-
bvrsements Of the same, at some con-
venient future period; therefore be it
resolved, &c.


1t will be seen that the company do
not denominate these scrip certificates
as representatives Of the earnings Of
the road of monies and receipts
from the traffic thereon, and used
for the construction. Now the revenue
laws of March, 1861, section l22, says
that any railroad, canal, turnpike, or
slack water company indebted for any
money for which bonds or other evi-
dence ofindebtedness have been issued,
payable in one or more years after date,
upon which interest is stipulated to be
paid,or coupons representing their inter
est, or any such company that may
have declared a dividend in scrip or
money due, or payable to its stockhold-
ers, including non-residents, whether
citizens or aliens, as part Of their earn
ings, profits, income or gains of such
company, and all profits Of such
company, carried to the account Of any
fund or used for construction shall be
subject to pay a tax OF five per cent.
upon the amount of all such interest
or coupons, dividends, or profits what
ever and whenever the same shall be
payable, to whatsoever party or persons
the same may be payable, including
non-residents, whether citizens or aliens,
and said company is hereby authorized
to deduct and withhold from all pay
ments on account Of any interest or
coupons, and due and payable as afore-
said, the tax OF five per centum and the
payment Of the amount Of said tax and
deducted from the interest or coupons
or dividends, shall discharge said COM
panv for that amount Of the dividends
or interest or coupons on the bonds or
other evidences OF the Indebtedness so
held by any person or party whatever,
except when said companies may have
contracted otherwise, and a list or
return shall be made and rendered to
the Assessor or Assistant Assessor on
or before the 10Th day of the
month following that in which said
interest, coupons or dividends be-
come due and payable and as often as
every six months, and said list or return
shall contain a true and faithful account
of the amount OF tax, and there shall
he annexed thereto a declaration Of the
President or Treasurer OF the company,
under oath or affirmation in form and
manner as may be prescribed by the
Commissioner Of Internal Revenue,
that the same contains a true and faith
ful account Of said tax, and for any de-
fault in making or rendering such list
or return with the declaration annexed
or OF the payment of the tax as afore-
said, the company making such default
shall forfeit a. a penalty the sum OF
$1,000, and in case Of any default IN
making or rendering said list or return
or Of the payment of the tax or any
part thereof as aforesaid, the assessment
and collection OF the tax and pen
altv shall be made according to
the provisions OF law in other cases Of
neglect or refusal: provided, that when
ever any Of the companies mentioned
in this section shall he unable to pay
the interest on their Indebtedness and
shall in fact fail to pay such interest
in such sases, the tax levied by this
section shall not be paid TO the United
States until said company resume the
navment OF interest on their indebted,
ness. This is very explicit and the law
undoubtedly requires the collection OF
the tax. The company says. this scrip
is a representative OF the earnings en-
construction. The law says the earn
ings of railroad companies are taxed in
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