davidaulloa/AmericanStories huggingface dataset:
Every evening, Wilmington daily commercial., 1922-03-04
BROKEN BRANCHES
IS FULL OF INTEREST
Clever Company viii Close Its
Playhouse Engagement
This Evening.

Broken Branches" the current at
traction az The Playhouse, is de-
cidedly pleasing Bit 81 entertainment.
II In IA comedy drama with excellent
dramatic action and witty repartec
that is decidedly amusing. Tho com
peny is a good one. every part being
capably handled II is decidedly worth
while. The final performances Of tho
local engagement will be given this
afternoon and tonight.
Broken Branches" which closes Al
Tho Playhouse tonight. has been care
| fully staged by H. Stillman. who foi
several years was the right-nand mnr
| OF David Balaaco, and assisted In thu
staging OF the Music Master" Davi,
/ Warfield's greatest SUCCESS Mr. SIM
man was also the stage director Of tn
! Theatre Guild during the first +
months u It's existence. ana is largely
responsible for tho success Of IN
many artistic productions made b.
/ that organization.
Every evening, Wilmington daily commercial., 1922-03-04
CHARLES GILPIN COMING.

Charles S. Gilpin, creator of the role
of The Emperor Jones" in Eugene.
q. ONeill's play OF the same name to
be seen at The Playhouse. three days
starting Thursday, March 8 with Il
Saturday matinee. recently had an ox-
perienCe not given many men 10 en-
joy. In his early days Charley was a
little darkey huotblack in Murphy's
hotel, Richmond. Virginia \ mis-
chievous lad. too. according TO John
Mitchell. owner Of string Of banks
in the South. Mitchell IS colored and
was Gilpins first boss" The little
pickaninny's mother. Caroline G5ipin,
a woman loved and respected by black
and white alike in Richmond. took her
son TO Mitchell to get him.a job. Aztec
/ % or more years. the ltt!c shoe
/ sinner returned to Rich ii a IA
nous actor. at the head ut Sc company
! OF white players, TO offer his art IN
/ the famous old Academy Of Music
whose sacred portals he would not
have dared enter in the old days John
! Mitchell, a most influential and cner-
getlc man in Richmond. was foremos
in planning and carrying through 8
banquet. reception and theatre, party
IN Gipin's honor.
Every evening, Wilmington daily commercial., 1922-03-04
1QuEEN or sHEBAr AT
THE MAJESTIC NEXT WEEK

The closing bill at the Majestic
Theatre This week "a made of silent
Years" a photoplay worthy Of sincere
recommendation and special added
feature THE Bashful sultor" rare
treat In the way Of beauty and love.
The reign OF the queen OF Snoba"
IL 20 commepoe Monday ~ the MaJes-
tic Her Royal Highncss. out Of the
dim past OF hundreds Of centuries
comes 20 live In an amazing, spec
tacnlar and gorgeous photoplay called
for her. metropolitan critics describ-
cd the picture as marvel Of beauty
color and dramatic force and as a
spectacle unsurpassed In magniacence
| All wrote with wondering approval Oi
The pageantry attending the arriva
Of the Queen Of Sheba AT King Solo
| mons court and declared the chatio
raco checred by 5000 spectators t,
bo one OF the most thrilling scenci
ever shown on the screen
Every evening, Wilmington daily commercial., 1922-03-04

distribution OF this stock as a property
dividend and contemplated the ASSESS
ment OF the stockholders upon that
theory. Whereupon counsel for the
aiiiaint interviewed the commission
and Informed him that II was import
ant and desirable that stockholders
should know what was the final con-
clusion of the commission, and the
commission then referred counsel To
the Advisory Board. That said coun-
sci appeared before the Advisory
Board. AT Washington. on June 80,
1919. when the matter was presented
by brief and orally. Nothing was
heard from the Advisory Board as to
its findings and recommendations, and
m october 2S, 1919. counsel addressed
"A letter to the commissioner calling his
attention 10 the hearing before the
Advisory Board and asking whether
something could not be done to work
out an advantageous basis of settle
mcnt.
THAT no reply was received 10 this
letter and the first intimation that the
afiant had that the commissioner in
tended 20 proceed against him was
10y tax bill forwarded January l,
1920, making "A demand FOR payment
of large sum of money on the basis
that the distribution OF the common
stock or tho Delaware company was a
property dividend and that the fair
market value of the stock ON October
/ !. 1915. was s3475O per share.
i sssffhus - 10 hn 90 IN a fnt,
or was more than four years after
/ the transaction. and more than three
years and six months after the return
OF the aflinut was made. In which re-
turn the commissioner was Informed
Of the circumstances under which the
stock WAS delivered To him.
THAT the afliant has been inform
ell hy the commissioner Of lntcrna
Revenue that the stock has been valu-
od fur the purpose of the income TAI
due by the afliant at s3i7 so per share
THAT the situation presented To th'
commissioner and upon which the sale
value was determined was that tn,
Delaware company had issued to tn
New Jersey Company 5Ss.5I2 share
.ot it's common stock Of the par valu
.uf 500 per share and the New Jerse,
g. nlpany had distributed this stoc
to it's stockholders and therefore, tn
question was what was the fair valu
OF this 5SS.642 shares of common stoC'
so diStrihutCdr IL was not a qucstio
NJ what 10. 20. 30. 100 or 1000 share
were worth hut the real question wa
Tho value e tho entire issue of stool
The question So far aS the atiiaut wa
concerned WAS tho Nnlu" per share {
the $4,000 shares received by him. Tn
0mmiSstoncr however. based the flud
, INK - tho value of the shares cntircl
upon the private sale Of compare tiVcl
small lots ~ stock at Wilmington, IN
, homo - the company. Tho stock wa
mo-; listed ON any exchange or cur
, market, and the only sales made WEI
between individuals cr brokers, an
, these sales comprised I'm tho total
small number ~ shares compared wit
, the total number ~ shares distrihu
ed
In the case of United States Y
, ThclUs. I'm the court ~ Claims.
which the plaintiff. Tor reasons her,
matter SGT forth. admitted that u
, value ~ the stock was SS47 so a sha'
AZ the time W its receipt Ny Claima,
, in October. 1915 tho only evidence
u suppor; ~ this admission was Il
private sale ~ lSS shares on Octoh
=. 1918. as follows.
Every evening, Wilmington daily commercial., 1922-03-04
ELSIE FERGUSON AND
WALLACE REID IN FOREVER.

Ethel Clayton in "EXit-The Namp"
Is the feature picture thar is current
at the Queen Theatre. 1t is a honey
picture OF a wife who routed out the
siren and made safe her home and
happiness. r. Roy Barnes plays OPP
posite the STAG. Interest extraordl-
nary is centered around the announce
nent that Wallace Reid and Elsie
Ferguson are to appear together in
Forever" at the Queen next week,
In New York the picture was called
Peter Ibbetsou" because the public
there knew the play hotter than any
other city did. But Forever" has
been retained as the titld elsewhere be-
cause L is so descriptive Of the ideal
of the story.
Every evening, Wilmington daily commercial., 1922-03-04

price TO s3aT.b0 per share was n frame
up on the part OF certain Stockholders.
at In a money making game" he
continued MIR. Hughes asked II that
were In tho record. mo- Mr.. dlas-
gov replied. ''but | viii give you evi.
dcnce II you want It." lie stated the
du Pont Co. will never pay the gov
ernmcnt another cent In income taxes.
Saying Congress In passing the act OF
1891 held that property should he free
from dstraint or levy for taxes of
1916, he pleaded for n preliminary
Injunction.
District Attorney Hughes brief con-
tanned the following statements:
THE present suit Is not maintain
able for reasons apparent on the face
OF the bill.
"Thc court does not have jurisdic-
ton 60 entertain q suit, the purpose Of
which IL To. restrain the collection Of
n tax.
"lnjunction 10 restrain the collection
of n fax IN inhibited by section 1924
Revised Statutes OF tho United States.
III II liz "A tax. section 3.22i REVISED
Statutes applies, and ita collection
cannot be enjhned.
THE validity Of the assessment can
not be inquired into IN suit for In
junction.
"Thc assessment was legal and
, valid
THE bin IS wholly without equity.
where taxes arc illegally or err
roneously collected the taxpayer has
10. "a. L.
at law. and the remedy SO given Is
exclusive. and no other remedy ear
Ice substituted for IT,
THE bill Is replCte with argument
and Incorrect concluslona Of law.
Questions as 10 the correctness d
the amount uf taxes assessed canno
DO raised I'm this suit. nor In any form
of action. EXCEPT I'm the manner pre-
scribcd by law.
Mere hardship IL no equity.
This suit Is in effect against tn
: United States.
The United states cannot be sue
except with it's consent and then onl
In the manner and under the condi
lions prescribed by IT,"
Following is a summary of Attorne
IGlasgows brief:
u mo assessment could he DropFrl
made after June I, 1916. with rcspeC
to the plaintiffs income for the yea
r. 1915 unless the return flied by tn
plaintiff for that year was false {
- Fraudulent
II M the return filed by the plainti
II WAS false or fraudulent uo retur
could he properly madc 10y the con
y after three years from March !. 1871
= upon which date plaintiffs return f.
r the year 1915 was due and was made
n III said return was false or frau'
u ulent,' an additional assessment.
H. be valid. must have been based upC
j. collector or deputy collector accor'
10 ing 10 the form prescribed
~ no return has been filed upon b
IF half of the plaiutin within three yea
= from March /, 1916.
10 The alleged return referred 20
A. defendants exhibit C was not ma
~ until July. 1919. or thereafter.
lc The said return was not made
nj the commissioner. collector or dcpu
~ collector.
r. "'Thc snid return was not made q
ID cording 10 the form prescribed
lie 9Th" assessment alleged to ha
he been made by the commissioner
o. December. 1919. was not based up
the alleged return"
Every evening, Wilmington daily commercial., 1922-03-04

Animals. Ike children. take their
corrections differently" says Nell
Shipman. star and author OF THE
Gin from Gods Country" now show
Ing at the Strand Theatre. brownie.
tho bear that plays with me. IS "A
SO 900 bear she said she can af-
ford To- have individuality and tempera-
ment." When Brownie s. corrected by
Miss Shlpman or Mr.. Van Tuyic. sho
Seeks out the farthest corner, sits
down dolcfuliy ana placcs nor two
forepaws up to her eyes ana actually
cries.
Every evening, Wilmington daily commercial., 1922-03-04
Cited phellis Case.

Thar the case ~ Phellis vs. United
states was brought IN the Court OF
Claims 10 recover the amount paid
w the claimant under protest on
valuation OF his 800 shares at S347.50
per share. and the claimant admitted
that the fair value Of each share was
S347 SO and the evidence In support OF
TINS admiss 'ou is set forth above show
ing the sale OF 1873 shares
That counsel fa the affiant. as
representing the stockholders who
were not parties 20 the suit. got into
correspondence with counsel for the
complainant and insisted that the fair
value OF the common stock Of the
Delaware company On October ]. 1915,
was not equal 20 is par value. and
wrote 10 counsel for Phelis under da te
of February q 1921 CThe affidavit
includes this and other correspond
+ ence) Counsel for the affiant fled a
/ brief IN the Court ~ Claims, IN which
he put the following note:
While some few shares of the New
/ Jersey company sold for 1895 PEI
share and ~ the Delaware company
sold for $S47-50 per share, no con-
siderable part OF this stock could have
been sold az such figures. and thi:
was the only evidence OF valuation
Cor assessment by the government and
was an unsafe criterion.
The counsel for the afflant has pro
tested at every opportunity that th'
common stock ~ the Delaware com
pany was not worth in excess OF pa
on October /. 1915. and the reason tn
question was not raised and judicial.
rassed upon in the Phellis case. fixinl
the value Of The stock. was that coun
sel for Phellis objected as a question q
policy 20 making the claim as TO valu
at!on in that case. and further be
CAUSE
Again many interested stock
holders prefer, II they are legally re
qu.red TO pay any tax on this dis
trFbution. 20 pay on the basis OF s34T
80 and obtain ;he advantage OF hav
. ing the stock on their books at thi
, rate
, That while IL may be 20 the aC
I vantage OF some stockholders 10 hav
, the government charge them on in
d basis OF S341.5O per share at the 19l
+ ate and have the stock on their book
at that value for the purposes =,
. credit al higher rates OF tavation. tn
p affiant who has never sold any
e his stock. will be mulcted 10 the poii
o OF disaster by an artificial valuation
% THAT It would therefore seem hi
% the court held that the common stoC
s OF the Delaware company represent,
!. the surplus Of accumulated profits
the New Jersey company, and tn
the distribution Of this stock amor
,. the stockholders resulted in a dlvisic
= Of former corporate profits. and Their
{ fore the conclusion would seem to
& inevitable that the value Of this sto'
Every evening, Wilmington daily commercial., 1922-03-04
"HhBIT- NEXT WEEK
At Tue ARCADIA THEATRE

Charles Ray ia now at tho Arcadia
Theatre finishing today a performance
~ his picture nineteen nn1 Phyllis"
II 10 a pepppry story Of puppy love
and ls presented ia such way as to
humor everyone. Ray is the small
town dandy 10 his usunl perfection
and his supporting company is equally
FIRE.
In the list % attractions for next
week the special photopay Habit" Is
entitled 10 first consideration because
If It's engagement Mondar. Tucsdly
and Wednesday, Women and fashion
are the two chief contributors to- the
excitement Of iis plot Thcsp two have
/ been the main ingredients of many an
/ other remarkable story. but the man
nor in which they combine 10 furnish
/ interest in Habit is certain 70 prove
! ~ extraordinary interest
------s1s-----~-
Auto tires repaired? Read the
Every evening, Wilmington daily commercial., 1922-03-04
ALFRED |, OU POINTS
TAX SUIT HAS SOME
INTERESTING PHASES
Continued from PAGE l

the New Jersey company he was and
has been the owncr of 35.7GT shares
of the common stock OF said company
and from the year 1919 all of said
shares of stock have stood in his own
name ON the books Of the company.
THAT in consideration ~ the trans
Ter of it's assets. good will. etc. To the
Delaware company the New Jersey
company received ON October !, 1915,
b96.6i7 shares Of the dcbcnturc stock
and 5SS. 542 shares of the common stock
of the Delaware company. each share
81 dchcnturc and common stock being
of the par value of 500, and making
total IN par value OF SllS.5l5.s0o, of
which stock 81 received S3O.2Si6Oo.
IN par value. of the dcbenture stock
was used In taking up. share for
share. and dollar for dollar. the pre-
frrrcd stock and 80 year Bonds of the
New Jersey company and the remain
der of the dehcnturr stock. To wit, S29.-
AZ 100 In par value. was held I'm the
treasury ~ the New Jersey company.
The common stock of the Delaware
company at the par value ~ SbS.S5A,-
zee was distributed immediately among
the common stockholders ~ the New
Jersey company. each stockholdcr re-
cclNing two shares of tho common
stock of the Delaware company for
each share of common stock held by
HIM I'm the New Jersey company. In
this distribution the at'iant received
on ~ about October /, 1915, n total
Of 1854 shares ~ the common stock
OF the Delaware company OF the par
value of 500 per share.
Every evening, Wilmington daily commercial., 1922-03-04
Made Personal Return.

"Tbat ON March 1916. the afilant.
n REQUIRED by the act 81 October 2.
ora made his personal return &C total
vet income accruing 60 him durins the
el,ndar year 1915 and 60 said return
t'ached a statement ~ writing fully
citing forth the entire transaction
ndcr which ~ received tho 90 aa4
hares ~ common stock 90 tho pcla-
are company afore said and protest
og against the inclusion 81 "a q
took IN his income tax for said year
qlS The affiant L. informed and he
ewes that 95 per cent ~ the stock
elders. including al! OF the large
,ockholders 81 the Delaware company
ttached "A like statement 10 their ana
,ch Of their personal returns az total
lcome for the year 1913. filed on
tarch 1916. Atlantis return afcre-
aid was duly fled 10y him with the
ollcctor ~ Internal Revenue for the
district 81 Delaware on March J, 1916,
ul was duly forwarded 10y said col
..tor. as the law requires, 10 the
,omls oner ~ Internal Revenue al
Washington. District ~ Columbia.
THAT on the thirtieth day Of June
AZ liable by reason ~ net income &C
ruinE to- him In the calendar year
a'b was cue and payable 20 the col
ct,l Of Internal Revenue Tor the DIS
.ict uf Delaware and ON or about
,id date afiant paid 90 said collector
ia entire amount due by him as afore
aid a. and for tax upon personal in
ONE accruing e. him In the year 1915
shown by the return made 10y af
ani as aforesaid.
"That the Bureau ~ Internal Reeve
n. conridered for some time th'
uestion Of liability TO income tax ul
ais stock and proceeded on severa
irerent and inconsistent theorie
ith regard thereto.
The Commissioner ~ lnterna
eVenue first took the position tina
ais common stock OF the Delawar
,mpauv was stock dividend, an
roceeded on that theory and assesse
lc % the stockholders on the basi
lat the shares Of common stock re
lived hy him In the Delaware com
any resulted from q stock dividend
,~rssing the same al par. and sal
ockholder was required 20 pay "a
ought suit 70 recover the amount +
id. That suit Is now pending. Tha
ter the decision OF the Suprem
curt 90 the United States In the cas-
Towne ". Eisner the commissions
,andoncd the stock dividend theor!
THAT late IN 1918. or early in 1911
le commissioner proceeded upon n
lcury that the common stock IN III
,enwaro company received by n
ockholderF of the New Jersey con
any resulted from liquidation div
end and so advised the atiiant Tn
aeory was subsequently abandone
Consulted Advisory Board.
THAT about the month Of June. 19l
formation was received from coui
j for the afiiRnt 90 the effect III
&c commissioner WAS considering q
Every evening, Wilmington daily commercial., 1922-03-04
No Return Made.

"Affiant charges that no return has
been made for him by the commission
or in accordance with the terms OF
the act of October 3,1913. The notice
and demand dated December 81 1919
aforesaid was made upon him charg-
ing that he had received Oh the LIST
Every evening, Wilmington daily commercial., 1922-03-04
CONVENTIONS of Counsel.

District Attorney Hughes yesterday
afternoon finished his argument on a
motion 10 dismiss the bill Of complaint.
He declared the complainant has ade-
ouate remedy at law and cited amend
ed section 1928. giving the right TO
cain refund two years after the pay
mont Of taxes, and the act of 1921,
allowing suit five years after pay
ment.
Attorney Glasgow. arguing against
dismissal Of the bin OF complaint and
for a preliminary injunction, reviewed
the bill and affidavit Referring Il
/ Coleman du Points sale OF 10000
shares Of the stock OF the New Jersey
company to a syndicate at $500 PEI
share, ne said that was the only larg,
sale in 1915. After mentioning tina
/ Coleman first asked $3.50 per share fo
the New Jersey stock and the syndi
cate tried to get il for 1925 per share
Mr.. Glasgow declared the price. of tn,
Delaware stock should not have beef
more than $50 per share. In 1918, h'
stated. the Delaware company wrot
up expected profits at $4,000 900. T.
enable It TO issue stock at 500 pc
share. and put down $26 100000 "a
goodwill and that day the government
assessed the stock at $347 per share
He said the complainant made returl
in March. 1916. He stated that an EN-
ploye Of the internal revenue office Il
|, Wilmington assessed the complain
ants stock and increased the assess
ment three times in two years.
In 1919. he remarked, il was Gale
liquidation" and. looking towards tn
district attorney while mentioning tn
= only return the government eve
p acknowledged Mr., du Pont had mad,
he said someone put that over on IN
e friend there" 1t was hard enough I
J., pay the taxes the first year, Mr.. elias
e. gov commented, but 1t is harder nov
I lie alleged increasing the stoc
Every evening, Wilmington daily commercial., 1922-03-04

when business is slow. and IN the
fall season. advertising helps 10 make
business better.--Adv.
Every evening, Wilmington daily commercial., 1922-03-04

The afiiant has no WAY 81 telling
exactly what number ~ shares OF the
delaware company were sold i'm
ucdiatcly after tho REORGANIZATION.
hut IL Is fact that very few shares
were sold compared TO the total num-
her 81 shares received hv the stock
h.Lant-e
Every evening, Wilmington daily commercial., 1922-03-04

That II the Collector Of Internal
Revenue for the District Of Dclawa
is now permitted to collect the 81 $50
0I6 Sc as and for additional income tax
against afliant for the year 1915 that
afiiant ny the delay Of the Commits
sioncr ~ Internal Revenue in assess
inC and collecting such tax. the
amount whereof is in excess Of that
properly due. Is not permitted under
the provisions OF law above set forth
"a file with the commissioner n claim
FOR refund Of the excess amount of
said tax Properly due. in that more
than five years since the date when
the return was due ny afiiant on
March /. 1916. have elapsed; and by
the delay Of the commissioner affiant
Will be deprived OF any remedy for
the collection and return OF the eX-
cess taxes collected from afilant for
the year 1915.
THAT while the law gives af'iant a
right Of action 10 recover taxes err
ronously or illegally assessed or col
lccted provided he proceeds within the
proper time ny claim for refund there
Of. yet the Revenue act OF 1921 does
not give 10 the atfiant a right OF ac-
ton 70 recover taxes which are col
lected by distraint or otherwise by the
/ collector Of Internal Revenue in vio-
+ latlon OF the limita tons provided by
/ the Revenue act OF 1921; and II the
Collector of Internal Revenue for the
! District Of Delaware should proceed
In violation. Of the Revenue act OF 1922
and collect the income tax for the veal
1915 against afiiant by the sale OF hi:
property or otherwise, II is very doubt
ful whether afiiant would have RICH
action against the collector to re
cover the amount so collected"
Every evening, Wilmington daily commercial., 1922-03-04

must be measured by tho former COR
porate profits and the surplus OF ac-
cumulated profits. and this would
seem to be the rule which the SUI
preme Court recognized as showing
that the common stock was income
or profit and also the basis upon which
Its value Ii to be asccrtained.
THAT the former profits accumulat-
ed ON September 80. 1915. which are
to be taken az the basis of tho distri-
button of this stock was income or
profit. must be the profits accumulat-
cd after the LIST OF March, 1918, up to
the LIST OF October. 1915.
THAT II Will appear from the bal
ance sheet of the New Jersey COM
pany as Of March l, 1919. that the
company had accumulated profits as
OF that date of S3.327, S93.5l. All divi-
dends paid after this date were cur
rently earned.
THAT IL IL also shown by the bal
ance sheet of tho company OF Sep.
tember 80. 1915. that the profits and
loss account tshowing its accumulate
ed protits) was 500. 955. 1896. and that
on the basis OF the accumulated pro.
fits up To September 80. 1915. deduct.
ing the accumulated surplus profit,
on March /. 1913, the stock of tn,
New Jersey company book value wa,
less that 5000 per share. and IL wher
the assets OF tile New Jersey company
were turned over to the Delaware com
pany on October /. 1915. the common
stock of the Delaware company rep
resented the surplus of accumulate,
profits and the former corporate pro
fits. the value of the Delaware com
pany common stock based upon suci
accumulated profits was less than So
per share.
THAT in making the assessment q
the common stock of the Delawar
company IA of October |, 1915, tn
government did not consider tho sur
plus of accumulated profits or tn
former corporate profits of the Ncy
Jersey company. but ascertaincd a
Wilmington. Delaware, what sales ha
been made privately between broker
or others of comparatively few share
of stock. and having been informe
that the stock had sold privately a
$3i7.50 or higher Gin small lOts), til
government assessed the value Of IN
stock on that evidence alone ut S3ii 81