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Show STOCK DIVK IE ; ITfflfEDBIE Supreme Court Decidas 1916 j Act Unconstitutional Court , Divided 5 to 4 on Decision I ' WASHINGTON, March 8. itock jdividendn may not be taxed cb income, the supremo court held today in de daring unconstitutional the provision? of the 1016 incomo tax act taxing as income such dividends declared by corporations cor-porations out of earnings and profits accruing after March 1, 1013. The court divided five to four. Justice Jus-tice Pitney rendering tho m.ijcrltv opinion, Justices Holmes and Day joining join-ing in one dissenting opinion, and Justices Jus-tices Clark and Brandeis in another. Under the court's ruling, the icderai government must refund millions of dollars in taxes collected on stock dividers divi-ders since the 1916 law became ef-fe''ivc. ef-fe''ivc. Intornal revenue bureau offi-clah? offi-clah? said today ihe exact total of the refunds could not be estimated ai thib time nnd that it would not be known until all claims had been JIoJ. and computed. Wall Street Taken, by "Surprise. NEW YORK, March 8. Errounou-i reports issued by financial new, tick-1 era that the United States .supreme court had declared stock dividends tax-jahlv) tax-jahlv) took Wall street by surprise to dav and caused heavy selling ut the .general list. Reactions of 2 to 11 points from the high prices of the morning were made by all the active isBUos, notably General Motors, U liter! Sta.fs Rubhor, Crucible Steel, American Ameri-can Woolen, Mexican Petroleum. Baldwin Bald-win Locomotive and Atlantic-Gulf 'i'I:e market made full recovery when" it was found that taxation of sto.tc dividends div-idends as income had been declared unconstitutional. In a few instances stocks exceeded their highest quota- j Hons of tho morning, especially certain cer-tain issues on which extra dividends are expected, as a result of todav's decision. |