Show I TOCK DIVIDEND I INCOME TAX r ILLEGAL s Supreme pr rr e Court Sp Splits its 5 3 to 4 on O Overturning Part of A Act t of 1916 f fJ J WASHINGTON March 8 8 l lons ns of the Income tax act of 1916 tax tax- taxing ing Ini as as Income stock dividends declared b by corporations out of ot earnings and profits accruing subsequent to March 1 J. J were held unconstitutional t to today td- td day b by the supreme court Justice Pitney rendering the cour courts court's s 's opinion said stock dividends are no nomore nomore nomore more than a book of Judgment a ado and do not change the nature of the character character character char char- acter mutual relations or interests of ofa ofa ofa a corporation The court divided five to four tour Justice Justice Jus Jus- tice tico Holmes and Day Joining in one dissenting opinion and Justices Brandeis Brandeis Bran- Bran deis dels and Clarke In another The The court upheld federal court de decrees decrees decrees de- de crees denying the authority of congress to tax stock dividends and awarding to Myrtle Maccomber l 1367 which she had paid under protest on 1100 shares of new stock received in ht January 1916 as a stock dividend from the Standard company of California The case was one of a series in which J T. T P P. Morgan Morgan Mor Mor- glin gan Herbert L L. Pratt and others had questioned the validity of orth th the act r Court officials said the case was one of cf the most important at this term and the e decision affects thousands of investors in- in |