US SUPREME COURT DECISIONS

In the provision of the Act of 1916 (§ 1, Tit. I, Part II, 39 Stat. 756) adding the sum of 5% to delinquent income tax and "interest" at the rate of 1% per month upon the tax from the time it became due, the interest is not penal, but compensatory, and its allowance, on a claim by the government against a bankrupt, is therefore consistent with § 57-j of the Bankruptcy Act. New York v. Jersawit, 263 U. S. 493, distinguished. P 266 U. S. 307.

290 F.9d 7 reversed.

Certiorari to a judgment of the circuit court of appeals affirming an order of the district court which, in turn, affirmed an order of a referee in bankruptcy allowing the government's claim for an income tax, but fixing the interest thereon at 6% per annum, the legal rate in the state, in lieu of the 1% per month demanded by the government. chanrobles.com-red

Page 266 U. S. 306