Volume 275 — United States Reports

Held: that the purchasing company must be presumed to have known that there was no law authorizing the lease;. that the circumstances disclosed in the case were sufficient to impute to it S’s knowledge of the fraud; and that it waá not entitled to use or remove the tanks. P. 54. . 9.

Lum v. Rice, 275 U.S. 78 (1927), is a United States Supreme Court case in which the Court held that the exclusion on account of race of a child of Chinese ancestry from a public school did not violate the Fourteenth Amendment to the United States Constitution. The decision effectively approved the exclusion of any minority children from schools reserved for whites. The case was brought by the Lum family of Rosedale, Mississippi, Chinese immigrants with two American-born children who had attended local public schools for white children without incident until, in the wake of an increase in anti-Chinese sentiment nationwide after passage of the Immigration Act of 1924, they were told by administrators that their children could only attend the district's school for black children.

Held: In such circumstances and in view.of the way of modem business, the jury 'might find it was natural and reasonable for the vendee to suppose that the certificate of deposit would be enough. P. 116. . (2) If the vendor, without previous notice, demanded strict legal tender, the vendee was entitled, at least, to a reasonable oppor-1 tunity — i. e., until the next day — to tender it. Id. *114 .

Held: because, (1) in the District Court no attempt was made to show a local rule of evidence binding on that court, and no assignment of error in the Circuit Court of Appeals was taken to the failure to follow the rule of evidence of the local court; and, (2) even if the decisions -of Pennsylvania courts had been cited by petitioner in support of a distinctive local rule of evidence, these cases fail to show any such…

Held: that neither of the two stipulations was shown to be against public policy. P. 206. 11 F. (2d) 595 , affirmed.' Ceetiorari, 271 U. S. 658 , to a judgment of the Circuit Court of Appeals, which reversed a judgment of the District Court dismissing on demurrer an action brought by, Drummond to recover damages for breach of a contract between him and Steele.

Held: that the term “ undivided profits ” is employed in its ordinary meaning of an excess in the aggregate value of the assets of a corporation over the sum of its liabilities, including capital stock, so that profits earned by a corporation which were insufficient to offset an impairment of its paid-in capital, were not “ undivided profits,” to be included as “ invested capital” in .computing the excess-profits credits…

Held: that it will not be considered by this Court. P. 225. 17 F. (2d) 663 , affirmed as modified. CertiorAri, 274 U. S. 730 , to a decree of the Court of Appeals of the District of Columbia, which affirmed a decree of the Supreme Court of the District of Columbia, commanding the Commissioner of Internal Revenue to respond to a subpoena of the Board of Tax Appeals.

Held: that the deduction was not allowable because the loss was not “ sustained ” during that taxable year. P. 247. 4. Trial by jury having been waived in writing, review of this case is limited to the sufficiency of the facts specially found to support the judgment and to the rulings excepted to and presented by the bill of exceptions, Rev. Stat. §§ 649, 700.

Held: Knauth, Nachod & Kuhne were respondents’ agents to collect them. If the former, respondents were creditors of the bankrupts, Douglas v. Federal Deserve Bank, 271 U. S. 489 ; Burton v. United States, 196 U. S. 283 , entitled to share only on an equal footing with other creditors.

Held: following Equitable Trust Co. v. Bochling, ante, p. 248, that the effect of the words “ favor ” and “ for account of ” was not to make the bankrupts agents for collection, but was to indicate the account to be credited; that ownership of the checks passed to the bankrupts, and that claimants were only general creditors. P. 256. 10 F. (2d) 935 , reversed in part and affirmed in part.

New Mexico v. Texas, 275 U.S. 279 (1927), was a United States Supreme Court case that determined the boundary between Texas and New Mexico in the vicinity of El Paso, Texas.

Held: that plaintiffs had no cause of action' against the defendant for the loss of use of the vessel caused by the negligence, since, (1) The docking contract between the owners and defendant was not for the plaintiffs’ direct benefit. P. 307. (2) No right of recovery could be based upon the ground that plaintiffs had a property interest in or right in rem against the ship. P. 308.

Held: that the admission in evidence of the liquor in such prosecution violated the Fourth and Fifth Amendments. P. 316. 4. A conviction in a federal court resting wholly upon evidence obtained through a violation of the defendants’ constitutional rights may be reversed although the point was not properly presented in the courts below. P. 319. 16 F. (2d) 1016 , reversed.

Held: however, that the contract had- expired and the obligations growing out of it had also expired, so that the issue tried was that of the validity of the patent.

Held: March 4,1918, in Cramp & Sons v. International Curtis Marine Turbine Company, 246 U. S. 28 , 42, 45, that the Act of 1910 did not effect a license to the United States or the contractor, making the patented device, to make or use the invention, and that the contractor could be sued for an injunction and for infringement in spite of the operation of that Act.

Held: that the transcript should be remitted to the.’ District Court for compliance with the rule, upon condition that the appellant pay a sum specified into the Circuit Court of Appeals to reimburse the appellee, for counsel fees and expenses incurred in securing elimination of the objectionable statement of evidence, besides the costs here and in the Circuit Court of Appeals. P. 387. ’ 16 F. (2d) 751 , reversed.

Held: that the leased property was not subject to county and municipal taxes assessed against the lessor. P. 400. 6. Construction of a state constitution: and statutes which may create serious questions under the Federal Constitution, is to be avoided if possible. P. 403. 13 F. (2d) 817 , affirmed. *394 Certiorari, 273 TJ.

Held: error, since the Oregon judgment, even though erroneous, was valid and conclusive between the parties in Oregon, ' and under the Full Faith and Credit Clause, was equally conclusive in Washington. 136,Wash. 322, reversed. Certiorari to a judgment of the Supreme Court of Washington, denying relief in an action on, an Oregon judgment. The writ of error • is dismissed and certiorari. granted. *450 „ Messrs.

Held: that his testimony to the effect that the loss of his hold was due to an unusual jerk given by the engine, more severe than any he had experienced or seen on a local freight train, could not sustain an inference of negligence upon the part of the engineer, (1) because there-was no evidence that the engineer knew or should have known that he was ,not on the train, but was attempting to get on it after it had started…

Held: that the substitution of his successor was in effect the commencement of a new and independent proceeding, which was barred by the running of the applicable state statute of limitations before the substitution was made. P. 462. 155 Ark. 541 ; 170 Id. 552 , reversed.

Held: . (1) That the damages recoverable by the plaintiff, from the defendant, were not measured as where “ just compensation’! , is' claimed from the United States under the statute -for cancellation of the government’s own contracts, but included anticipated profits. P. 473. (2) Plaintiff’s rights under its own contract .were not dependent on the continued existence of defendant’s contract' with the Fleet Corporation.