La Belle Iron Works v. United States’s Empirical Analysis

Citation profile

5 federal appellate · 9 district · 14 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 141 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “' “In order to adhere, to this restricted meaning and avoid exaggerated valuations, the draftsman of the act resorted to the test of including nothing but money, or money’s worth, actually contributed or converted in exchange - for shares of the capital stock, or actually acquired through the business activities of the corporation or partnership (involvmg again a conversion) and coming in ab extra, by way of increase over the original capital stock.” (Italics ours.)”

   4 later decisions quote this exact passage · from the majority
   e.g. Kaufmann & Baer Co. v. Heiner · Lansdale Structural Steel & Machine Co. v. Commissioner

2. “* * * Section 207 [Revenue Act of 1917] shows that Congress was fully alive to this and designedly adopted a term — “ invested capital ” — and a definition of it, that would measurably guard against inflated valuations. The word “ invested ” in itself imports a restrictive Qualification. When speaking of the capital of a business corporation or partnership, such as the act deals with, “ to invest ” imports a laying out of money, or money’s worth, either by an individual in acquiring an interest in the concern with a view to obtaining income or profit from the conduct of its business, or by the concern itself in acquiring something of permanent use in the business; in either case involving a conversion of wealth from one form into another suitable for employment in the making of the hoped-for gains. * * *”

   3 later decisions quote this exact passage · from the majority
   e.g. Clearfield Lumber Co. v. Commissioner · Hind v. Commissioner

3. “(a) In the case of a corporation or partnership: (1) Actual cash paid in, (2) the actual cash value of tangible property paid in other than cash, for stock or shares in such corporation or partnership, at the time of such payment (but in case such tangible property was paid in prior to January first, nineteen hundred and fourteen, the actual cash value of such property as of January first, nineteen hundred and fourteen, but in no ease to exceed the par value of the original stock or shares specifically issued therefor), and (3) paid in or earned surplus and undivided profits used or employed in the business, exclusive of undivided profits earned during the taxable year: Provided, That (a) the actual cash value of patents and copyrights paid in for stock or shares in such corporation or partnership, at the time of such payment, shall be included as invested capital, but not to exceed the par value of such stock or shares at the time of such payment, and (b) the good will, trade-marks, trade brands, the franchise of a corporation or partnership, or other intangible property, shall be included as invested capital if the corporation or partnership made payment bona fide therefor specifically as such in cash or tangible property, the value of such good will, trade-mark, trade brand, franchise, or intangible property, not to exceed the actual cash or actual cash value of the tangible property paid therefor at the time of such payment; but good will, trade-marks, trade brands, franc”

   2 later decisions quote this exact passage · from the majority
   e.g. St. Louis Screw Co. v. Commissioner · Hind v. Commissioner