hereby extended to the financial officers thereof, and they are hereby required to collect and pay over the taxes, due to the State, on such payments of interest, as provided in this section, to be done by officers of incorporated companies; and in case of any officer neglecting, or refusing, to retain the same, he shall become personally liable for the amount. (Repealed. See p. 898.)

SEC. 6. That every incorporated company, whose lines extend into any other States, and every corporation, created under the laws of any other State, and holding and enjoying any franchises, property, railroad, canal work, or privilege whatsoever, within this State, shall make the same returns, in regard to the tonnage, of such portions of their lines as lie within this State, as if the whole was within; and if any president, treasurer, or other financial officer, required to make returns, shall, after demand for thirty days, still neglect, and refuse to make the returns or pay over the amount of such tax, the same shall be handed over to the attorney general, who shall forthwith institute proceedings to annul the corporate franchises of such company, or corporation, within this State. (Repealed. See p. 898.)

SEC. 7. That so much of the forty-second section, of the act approved April 29, 1844, as provides for the abatement of five per centum on the amount of State taxes, paid fifteen days prior to the first of September, in any year, be and the same is hereby repealed; and, hereafter, it shall be the duty of the auditor general to add five per centum penalty to each county, on all State taxes remaining unpaid, on the first day of August, 1865, and of each year thereafter, which shall be charged in the duplicate against each delinquent taxpayer in ariears on and after said day;

ANNOTATIONS.

PRODUCTS OF MINES.

1. COAL COMPANIES INCLUDED.

2. FOREIGN COAL COMPANIES-POWER TO TAX.
3. INCREASE OF STOCK-BONUS AND TAX.

1. COAL COMPANIES INCLUDED.

This act imposed a general tax of 3 per cent per annum on the net earnings of every corporation doing business within the Commonwealth, except those paying a tax on dividends. As this statute is general in its terms and embraces all corporations it must include coal companies, unless they pay a tax on dividends or were liable to make such payment.

Commonwealth v. Baltimore Coal Co., 1 Pearson 375, p. 376.

2. FOREIGN COAL COMPANIES-POWER TO TAX.

The legislature has power to tax a coal company incorporated under the laws of another State which has availed itself of the provisions of the act of April 23, 1841, for carrying on business and holding real estate within this State, in the same manner that it could tax such a company if incorporated by the laws of Pennsylvania alone.

Commonwealth v. Baltimore Coal Co., 1 Pearson 375.

The general rule is that the private charter of a corporation should not be construed to be changed by a general law applying to corporations at large; but tax laws form an exception to this general rule and a corporation incorporated under the laws of another State, but accepting the provisions of the act

of April 23, 1841, for doing business and holding real estate in this State, is subject to any taxes imposed by a general statute. This power to tax such corporation is based on the ground that the corporate charter could be changed by the legislature.

Commonwealth v. Baltimore Coal Co., 1 Pearson 375, p. 376.

3. INCREASE OF STOCK-BONUS AND TAX.

The Columbia Oil Company was incorporated by the act of May 1, 1861, with a capital stock of $200,000. The incorporating act required it to pay a bonus of two and one-half per cent on its capital stock in lieu of any and all taxes on dividends. The charter limited its real estate to 500 acres. By a supplemental charter passed June 4, 1864, the capital stock was increased to $2,500,000 and permission given to own 1,000 acres of land. The increased capital was subject to a bonus of one-half of one per cent payable in four equal installments. At the date of the original incorporation of this company the tax imposed on dividends of corporations had been abolished by the act of April 12, 1859. Owing to the oversight the taxing officers have never required corporations so organized to pay a tax on both dividends and capital stock. While this exception would apply to the original capital of this company, it would not apply to the increased capital stock and to that extent the company is subject to a tax on its increased capital both as to its capital stock and its net earnings. Commonwealth v. Columbia Oil Co., 1 Pearson 377.

PRODUCTION OF MINES-REPORT FOR TAXATION.

LAWS 1864, P. 988.

AUGUST 25, 1864.

AN ACT to provide additional revenue for the use of the Commonwealth.

SEC. 1. Be it enacted, etc.:

State, * * *

That the president, treasurer, cashier, or other financial officer of every rallroad company, steamboat company, canal company, and slackwater navigation company, and all other companies now, or hereafter, doing business within this shall, within thirty days after the first days of January, April, July, and October of every year, make return, in writing, to the auditor general. under oath or affirmation, stating fully and particularly, the number of tons of freight carried over, through, or upon the works of said company, for the three months immediately preceding each of the above-mentioned days; and each of said companies, except as aforesaid, shall, at the time of making such return. pay to the State treasurer, for the use of the Commonwealth, on each two thousand pounds of freight so carried, tax at the following rates, viz: First, on the product of mines, quarries, and clay beds, in the condition in which said products

may be taken therefrom, two cents.

TAXATION OF REAL ESTATE EXCESSIVE LEVY.

LAWS 1866, P. 82.

FEBRUARY 23, 1866.

AN ACT to amend the revenue laws of the Commonwealth.

SEC. 1. Be it enacted, etc.:

SEC. 2. That in addition to the taxes now provided for by law, every railroad, canal, and transportation company, incorporated under the laws of this Com monwealth, and not liable to the tax upon income, under existing laws, shall

pay to the Commonwealth a tax of three-fourths of one per centum upon the gross receipts of said company; the said tax shall be paid semiannually, upon the first days of July and January, commencing on the first day of July, 1866; and for the purpose of ascertaining the amount of the same, it shall be the duty of the treasurer, or other proper officer of said company, to transmit to the auditor general, at the dates aforesaid, a statement, under oath or affirmation, of the amount of gross receipts of the said company during the preceding six months; and if any such company shall refuse or fail, for a period of thirty days after such tax becomes due, to make said return or to pay the same, the amount thereof, with an addition of ten per centum thereto, shall be collected for the use of the Commonwealth, as other taxes are recoverable by law, from said companies. (Repealed. See p. 898.)

SEC. 4. From and after the passage of this act the real estate of this Commonwealth shall be exempt from taxation for State purposes: Provided, That this section shall not be construed to relieve the said real estate from the payment of any taxes due the Commonwealth at the date of the passage of this act.

ANNOTATION.

REAL ESTATE EXEMPTED.

EXCESSIVE LEVY ON REAL ESTATE.

This act exempted real estate from all taxation for State purposes, and from that date only 10 mills on the dollar of the valuation could be levied upon real estate for county purposes. A levy of 13 mills under the act of May 8, 1854, on real estate is 3 mills in excess of what the law allowed.

Locust Mt. Coal & Iron Co. v. Curran, 2 Leg. Chron, 231, p. 233.

REPORT OF ANTHRACITE COAL MINED-TAXATION.

LAWS 1867, P. 42.

(Repealed. See p. 898.)

MARCH 22, 1867.

AN ACT to increase the revenues of the Commonwealth.

SEC. 1. Be it enacted, etc.:

That from and after the passage of this act every railroad, canal, or transportation company, which possesses the right to mine anthracite coal, or purchase, or lease, and sell the same shall quarterly, on the first days of January, April, July and October, make a report, under oath or affirmation, stating the amount of coal mined by them, and from property owned and leased by them, and also the amount of coal purchased by them, or mined from property owned by them, that may be leased to other parties during the preceding three months and shall pay to the commonwealth, within thirty days thereafter, a tax of four cents per ton upon each and every ton of anthracite coal so purchased or mined, the accounts to be settled by the auditor general and State treasurer; and in case of default in payment to be recoverable as other taxes due to the Commonwealth are now by law recoverable: Provided, That the amount of coal, consumed in the transaction of their business shall not be included in their return: And provided further, That said corporation shall be exempt from the payment of the tax upon tonnage, as imposed by an act, entitled "An act to provide additional revenue for the use of the Commonwealth," approved August 25, 1864, upon all coal upon which a tax shall be paid under the provisions of this act, and also from the tax on net earnings or income, as imposed by the act of April 30, 1864,

and also from the tax upon gross receipts imposed by the act of February 23, 1866, so far as the net earnings and gross receipts are derived from the mining, transportation, and sale of the said coal: And provided also, That whatever amount may be received by the State as a tax upon the net earnings or income of companies that mine and sell the coal upon which a tax is levied by this act shall be deducted from the tax hereby imposed.

CORPORATIONS GENERALLY-TAXATION.

LAWS 1868, P. 108.

MAY 1, 1868.

AN ACT to revise, amend and consolidate the several laws taxing corporations, brokers, and bankers.

SEC. 1. Be it enacted, etc. :

That hereafter no institution or company incorporated by or under any law of this Commonwealth, general or special, or of any other State, and authorized to do business in this State, shall go into operation without first having the name of the institution or company, the date of incorporation, the place of business, the amount of capital paid in, and the names of the president and treasurer of the same registered in the office of the auditor general; and any such institution or company which shall neglect or refuse to comply with the provisions of this section shall be subject to a penalty of five hundred dollars, which penalty shall be collected on an account settled by the auditor general and State treasurer as taxes on capital stock are settled and collected.

SEC. 2. That hereafter it shall be the duty of the president or treasurer of every company incorporated by or under any law of this Commonwealth, except banks and savings institutions, and of all companies incorporated by any other State and lawfully doing business in this Commonwealth, who are taxable under the laws of this State, to make report in writing to the auditor general annually, in the month of November, stating specifically the amount of capital paid in, the date, amount and rate per centum of each and every dividend declared by their respective corporations during the year ending with the first Monday of said month; and in all cases where any such company shall fail to make and declare any dividend during the year ending as aforesaid, the treas urer and secretary thereof, after being duly sworn or affirmed to do and perform the same with fidelity according to the best of their knowledge and belief, shall, between the first and fifteenth days of November of each year in which no dividend has been declared as aforesaid, estimate and appraise the capital stock of such company at its actual value in cash, and when the same shall have been so estimated and appraised, they shall forthwith forward a certificate thereof to the auditor general, accompanied by a copy of their said oath or affirmation, by them signed, and attested by the magistrate or other person qualified to administer the same.

SEC. 3. That if the said officers of any such company or corporation shall neglect or refuse to furnish the auditor general, on or before the thirty-first day of December in each and every year, with the report aforesaid, or the report and appraisement, as the case may be, as required by the second section of this act, it shall be the duty of the accounting officers of the Commonwealth to add 10 per centum to the tax of said corporation for each and every year for which such report or report and appraisement were not so furnished, which percentage shall be settled and collected with the said tax in the usual manner of settling accounts and collecting such taxes: Provided, That if said officers of any such company or corporation shall fail to comply with the provisions of the second section of this act for three successive years, the auditor general may.

If he deems it conducive to the public interest, report the fact to the governor, who shall thereupon, by proclamation, declare the charter of said company or corporation forfeited and their chartered privileges at an end.

SEC. 4. That the capital stock of all companies whatever, incorporated by or under any law of this Commonwealth, or incorporated by any other State, and lawfully doing business in this Commonwealth, or that may be hereafter incorporated, except banks and savings institutions and foreign insurance companies licensed in pursuance of the general acts in relation thereto, shall be subject to and pay a tax into the treasury of the Commonwealth annually, at the rate of one-half mill for each one per cent of dividend made or declared by such company, and in case of no dividend being made or declared by such company, then three mills upon a valuation of the capital stock of the same, made in accordance with the provisions of the second section of this act: Provided, That companies liable to tax on dividends in addition to tax on capital stock, prior to the act approved April 12, 1859, entitled “An act to equalize taxation upon corporations," shall from the said date be exempted from any tax on dividends: Provided further, That building associations, plank road or turnpike companies, shall not be liable for any tax to the Commonwealth when such companies make or declare no dividends.

SEC. 5. That the amount of tax on capital stock imposed by the preceding section of this act, shall be retained and deducted by the treasurer or other officer having charge of any company or corporation as aforesaid, from the dividends or profits made or declared as aforesaid, and he is hereby authorized and required on or before the fifteenth day of January then next, to transmit to the treasury of the Commonwealth the amount of said tax; and if in case where no dividend has been made or declared the funds of such company, subject to the control of the treasurer at the period when the value of said capital stock shall be appraised, as required by the second section of this act, shall be insufficient to pay the tax aforesaid, it shall be the duty of the said treasurer or other officer forthwith to give notice to the stockholders of such company of the amount required on each share of stock by them respectively held, to enable the said treasurer to pay the tax aforesaid; and if any such stockholder shall neglect or refuse to pay the amount so required for the period of thirty days from the time of such notice, the said treasurer shall, after giving two weeks' public notice thereof in one or more newspapers published in or nearest to the county in which such company, or its principal place of business is located, proceed to sell at public sale and transfer to the purchaser, so many shares of the stock of such delinquent stockholder as may be necessary to pay his portion of the tax required to be paid as aforesaid; and if any company incorporated as aforesaid shall neglect or refuse to pay the tax hereinbefore required to be paid, the directors, managers, or treasurers thereof, for the time being, shall be jointly and severally liable in their individual capacity for the payment thereof, and the same may be sued for and recovered under the direction of the State treasurer, as debts of like amount are recoverable.

SEC. 6. That every private banker and broker, and every unincorporated banking and saving institution and express company, and all corporations incorporated by or doing business in this Commonwealth, except those liable to a tax on tonnage under the provisions of this act, and foreign insurance companies licensed in pursuance of the several acts in relation thereto, except banks and savings institutions incorporated by this State, shall annually, upon the first day of November of each year, make report to the auditor general, under oath or affirmation, setting forth the entire amount of net earnings or income received by said individuals, company, or corporation, from all