Show STOCK DIVIDENDS CANT CAN'T BE TAXED Supreme Court Rules They Do Not Represent In Income orne in Any Sense Sp Special Washington Han Jan 10 A 10 A decision which hichi may be of the tho utmost interest in these days when the income tax is beIng being be be- ing lug laid upon millions million of QC t people has been han handed ed down b by tile the United States supreme court It declares in tub sub stance that stock dividends are arc not In Income income in- in come como and cannot be taxed under tho the income tax law I lii 11 rl t r Hr r nf fit 1 ill n the tile court held leaves each eacil stockholder with ItI the same proportional interest h he held before th the corporation being no ne poorer and ho he no richer Such Suli a dividend dividend divi divi- en it held really takes nothing from rom the property of oC a corporation and a adds nothing to time the interest of oC the tho stock stock- holder The case came before the hl highest tribunal on an appeal ta taken en from rom a decision do- do o of the district court of or New York Henry Towne brought suit against the collector tor o of internal revenue revenue rev rev- for tor or the Third district of or New cw York to recover OOOO tax paid under protest pro- pro test upon a n stock ld dl dividend il voted b by bythe the time Yale Yolo Towne Manufacturing compan com corn pan pany Tho TIle company compan had In December 1913 voted to transfer surplus surplus surplus sur sur- plus the amount being profits earn earned d before January 1913 to its capital stock and to 0 issue shares share of ot stock representing this tills to its stockholders The Tue d district Court ourt decided decided de de- in favor of ot time tile Internal revenue re collector through h whom the governments government's govern govern- o ern ment's ments contention that the stock represented rep rop- rop resented Income was presented The decision was based on the time Phelan Income law lav I passed in 1913 |