US LAWS, STATUTES and CODES : Chan Robles Virtual Law Library USA Supreme Court Decisions | Resolutions : Chan Robles Virtual Law Library

ChanRobles™ Virtual Law Library™ |™   
Main Index Repository of Laws, Statutes and Codes Latest Philippine Supreme Court Decisions Chan Robles Virtual Law Library Latest Legal Updates Philippine Legal Resources Significant Philippine Legal Resources Worldwide Legal Resources Philippine Supreme Court Decisions United States Legal Resources United States Supreme Court Jurisprudence ChanRobles LawTube - Social Network

ChanRobles Internet Bar Review : DebtKollect Company, Inc. - Debt Collection Firm Intellectual Property Division - Chan Robles Law Firm

Philippine Supreme Court DecisionsChanRobles On-Line Bar Review

google search for chanrobles.comSearch for

WEISS V. STEARN, 265 U. S. 242 (1924)

Subscribe to Cases that cite 265 U. S. 242 RSS feed for this section

U.S. Supreme Court

Weiss v. Stearn, 265 U.S. 242 (1924)

Weiss v. Stearn

Nos. 262 and 263

Argued April 30, 1924

Decided May 26, 1924

265 U.S. 242


Pursuant to an agreement, the stockholders of an Ohio corporation deposited with a trustee their certificates for all its capital stock ($5,000,000), and other parties deposited $7,500,000; the depositors organized a new Ohio corporation with authorized capital stock of $25,000,000, and powers like those of the old corporation; the new corporation took over the property, assets and business of the old one, assuming its contracts and liabilities, and delivering certificates for all its stock to the trustee, in payment, and carried on the business under the old management; the old corporation was dissolved; the trustee delivered half of the new stock and the whole $7,500,000 to the old stockholders pro rata, and the other half of the new stock to the other depositaries, so that each owner of old stock received cash, and also shares of new stock representing an interest in the corporate property and business half as large as he had before.


(1) That the new stock received by the old stockholders, unlike the money, was not the proceeds of a sale, but represented part of the same capital investment as their old shares, without any segregated gain taxable as income under the Revenue Act of 1916. P. 265 U. S. 252.

(2) The transaction amounted to a financial reorganization under which each stockholder retained half his interest and disposed of the remainder. P. 265 U. S. 254.

(3) Questions of taxation must be determined by viewing what was actually done, rather than the declared purpose of the participants. Id.

(4) When applying the Sixteenth Amendment and income tax laws enacted under it, the courts must regard matters of substance, and not of mere form. Id.

285 F.6d 9 affirmed. chanroblesvirtualawlibrary

Page 265 U. S. 243

Certiorari to judgments of the circuit court of appeals affirming judgments recovered by the respondents in the district court in their actions to recover money paid under protest as income taxes. chanroblesvirtualawlibrary

Page 265 U. S. 251

ChanRobles™ LawTube

google search for Search for

Supreme Court Decisions Philippine Supreme Court DecisionsUS Supreme Court Decisions



Browse By ->> Volume


Browse By ->> Year


  Copyright © ChanRobles Publishing Company | Disclaimer | E-mail Restrictions
ChanRobles™ Virtual Law Library |™