People ex rel. Rogers v. Graves

• Decision Date: 28 April 1936
• Citation: 271 N.Y. 543,2 N.E.2d 686
• Court: New York Court of Appeals Court of Appeals
• Parties: THE PEOPLE of the State of New York ex rel. Richard R. ROGERS, Appellant, v. Mark GRAVES et al., Constituting the State Tax Commission of the State of New York, Respondents.

271 N.Y. 543

2 N.E.2d 686

THE PEOPLE of the State of New York ex rel. Richard R. ROGERS, Appellant,

v.Mark GRAVES et al., Constituting the State Tax Commission of the State of New York, Respondents.

Court of Appeals of New York.

April 28, 1936.

Appeal from an order of the Appellate Division of the Supreme Court in the Third Judicial Department (245 App.Div. 452, 283 N.Y.S. 538), entered November 18, 1935, which confirmed, on certiorari, a final determination of the State Tax Commission assessing additional income taxes against relator for the years 1927, 1928, and 1929, during which years the relator was employed by the Panama Railroad Company as general counsel at an annual salary. In filing his income tax returns for these years he acknowledged receipt of such income But did not include it as part of his gross income for tax purposes. Assessments for the tax computed thereon were made by the State Tax Commission. The Panama Railroad Company is a domestic corporation created by chapter 284 of the Laws of 1849. An affidavit of petitioner, in opposition to the imposition of the taxes in question, alleged that in 1904 the United States acquired all the capital stock of the railroad company; that the directorate of the company consists of thirteen members; that each director has one qualifying share of stock, but upon death or resignation, this share, under a previous agreement, is turned over to the government of the United States for the purpose of qualifying his successor in office; and that all dividends upon the stock, including the qualifying shares of directors, are paid directly to the government of the United States. If further alleged that the Panama Railroad Company operates a railroad across the Isthmus of Panama, conducts a commissary establishment for the benefit of the personnel of the Panama Canal, the Panama Railroad Company, and of the armed forces of the United States upon the Isthmus, and operates a dairy and two hotels in connection therewith; and that it also operates a line of steamships between New York and Cristobal, Panama Canal, which afford the personnel of the Panama Canal and the Panama Railroad Company transportation to and from the United States at reduced rates, and which carry freight for the United States to the Canal Zone at less than the customary tariff rates. Richard Reid Rogers, of New York City, in pro. per.

John J. Bennett, Jr., Atty. Gen. (Joseph M. Mesnig and Henry Epstein, both of Albany,...