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Marr v. United States, 268 U.S. 536 (1925)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Marr v. United States, 268 U.S. 536 (1925)
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Marr v. United States No. 236 Argued Nobember 19, 1924 Restored to docket for reargument January 5, 1925 Decided June 1, 1925 268 U.S. 536
APPEAL FROM THE COURT OF CLAIMS.
Syllabus
A Delaware corporation, organized for the purpose, took over the assets and continued the business of a New Jersey corporation, assuming its liabilities, after an exchange of stock, as follows: the New Jersey corporation had outstanding $15,000,000 of 7% preferred and $15,000,000 common stock, all shares of the par value of $100, and had accumulated a large surplus from profits, the actual value of the common stock being $842.50 per share; the Delaware corporation had an authorized capital of $20,000,000 in 6% nonvoting preferred stock and $82,600,000 in common, shares all of the par value of $100, and exchanged five shares of its common stock for every like share in the New Jersey corporation, and one and one-third shares of its preferred stock for every like share in the New Jersey corporation, making payments in cash to avoid fractional certificates, and thus all the stock of the New Jersey corporation was exchanged, except a few shares of preferred stock redeemed in cash, and the Delaware corporation had $7,600,000 of authorized common stock remaining which was old or held for sale for additional capital. Held that the new securities thus received by an old stockholder were not in effect a stock dividend, and that their value above the cost of his exchanged securities, bought by him prior to March 1, 1913, was taxable as income under the Act of September 8, 1916, and within the power of Congress so to tax, since the corporations were essentially different, being organized in different states and with different rights and powers, and since the shares exchanged represented different interests both because of these differences in the corporations and because a 6% nonvoting preferred stock differs essentially from a 7% voting preferred stock, and common stock subject to the priority of $20,000,000 preferred and a $1,200,000 annual dividend charge differs essentially from a common stock subject only to $15,000,000 preferred and a $1,050,000 annual dividend charge. Eisner v. Macomber, 252 U.S. 159, and Weis v. Stearn, 265 U.S. 242, distinguished. P. 539.
58 Ct.Cls. 658 affirmed.
Appeal from a judgment rendered by the Court of Claims for the United States in a suit brought by the appellant to recover the amount of an additional income tax paid under protest.
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Chicago: U.S. Supreme Court, "Syllabus," Marr v. United States, 268 U.S. 536 (1925) in 268 U.S. 536 268 U.S. 537–268 U.S. 538. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=6MRSYIWG58NQA6P.
MLA: U.S. Supreme Court. "Syllabus." Marr v. United States, 268 U.S. 536 (1925), in 268 U.S. 536, pp. 268 U.S. 537–268 U.S. 538. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=6MRSYIWG58NQA6P.
Harvard: U.S. Supreme Court, 'Syllabus' in Marr v. United States, 268 U.S. 536 (1925). cited in 1925, 268 U.S. 536, pp.268 U.S. 537–268 U.S. 538. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=6MRSYIWG58NQA6P.
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