Clallam County v. United States, 263 U.S. 341 (1923)

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Clallam County v. United States


No. 255


Argued November 15, 1923
Decided November 26, 1923
263 U.S. 341

ON CERTIFICATE FROM THE CIRCUIT COURT OF APPEALS
FOR THE NINTH CIRCUIT

Syllabus

1. A suit by the United States and its corporate instrumentality against a county and its taxing officers to avoid state and county taxation of property held by the corporation upon the ground of its immunity under the Constitution is a suit arising under the Constitution, and within the jurisdiction of the district court. Jud.Code § 24. P. 344.

2. A state cannot tax the property of a liquidating corporation which, though formed under her laws, was brought into existence and operated by the United States purely as an instrument of war, whose property was furnished, whose stock and bonds are held, and whose assets realized from the liquidation will be taken over, by the United States alone. P. 344. Thomson v. Pacific Railroad, 9 Wall. 579, distinguished.

Questions propounded by the circuit court of appeals in a suit brought by the United States and the Spruce Production Corporation to set aside taxes on property held by the corporation. The plaintiffs got a decree in the district court. 283 F. 645.