The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-05-16

Supreme Court Rules on
Big Tax Case-Atlauta
Bank Decision.

Washington, May 16.-The gov
ernment wen today in the supreme
court its contention that increase
value OF any capital asset must
be considered as corporation prof.
its when taxes were computed.
The courts decision was given
in the appeal of La Belle Iron
Works from ruling of the treas
ury that ore lands purchased for
$190,000 in 1904, must be returned
in the 1917 report at $4,000, ,0O)
and a profits tax paid on the diff
ference. The opinion today sus-
tained this ruling.
Hundreds of millions of dollars
in excess profits taxes were involv-
ed in the case which was charact-
erized by high government Off
cial as "the most important legal
suit affecting federal finances to
arise in several decades"
Georgia Bankers.
Federal reserve banks have not
the right to insist on par collec-
ton Of checks of member banks,
the supreme court ruled today in
effect.
The court reversed DEGREES of
Georgia courts which had refused
to enjoin the federal reserve bank
of Atlanta from taking steps to
force collection of checks drawn
on number of Georgia state non
member banks except through the
usual and ordinary channels"
Rules on @Dry' Law.
Washington, May 16.-The re-
quirement that the prohibition
amendment be ratified within seven
years by three-fourths of the states
does not invalidate the entire
measure. the supreme court today
ruled.
The decision was given in the
appeal of ]. j. Dillon of San Fran
cisco from decisions in lower
courts refusing his petition for q
writ Of habeas corpus on the
ground that the limitation made
| the amendment invalid.
Dillon was arrested while trans,
porting case OF wine to the hoL-
of its owner. His counsel assert,
ed that section 3 of the amendment
originally proposed by Senator
Harding, placed limitation on the
acton Of the state legislatures ano
was therefore unconstitutional.
F.; I'VE find that proposal and rati'
! ficatioh of an amendment are treat
ed as succeeding acts in common
endeavor,' the opinion said, "ant
there is a fair implication that they
should be fairly contemporaneous.
| In the course Of the decision thu
court ruled formally that the pro
hibition amendment went into ef
feet Jan. Is. 1920. Dillon's alleged
offense was on Jan. II. 1920.
Otncr Cases.
| The supreme court today dis
missed for want of Jurisdiction tn
appeal Of the city of New Yori
from DEGREES Of lower courts hole
ing that the S0-cent gas law wa.
unconstitutional. The dismissa
was ordered on the ground that tn,
, city had no property or legal in
terests in the suit.
Estate taxes paid under stat
laws cannot be deducted from tn
met estate" upon which a tax il
affixed under the federal reysHu
act of 1916, the supreme court rulet
today in affirming DEGREES of fed
eral courts in New Yory in a sui
brought by the executors of tn
estate Of the late J. Harsen Purdy
The estate tax provided in tn
revenue act of 1916. was held vali'
today by the supreme court in pass
ing on the appeal of executors o
the estate of the late J. Harsel
Purdy Of New York.
Aliens resident in the Unite'
States have no legal right to de
mand the admittance of relatives
the supreme court ruled in ef1ec
today. in upholGing decisions O
iCalifornia courts in the appeal o
Yee Won, a Chinaman who sough
to bring his wife and two mino
children with him on his return t
this country from visit to China
The immigration authorities re
fused to admit them.