Sargent Land Co. v. Von Baumbach

Citations

• 207 F. 423
• 1 A.F.T.R. (P-H) 286
• 1913 U.S. Dist. LEXIS 1318

Syllabus

<p>1. Internal Revenue (§ 9*)—Corporation Tax—“Doing Business.”</p> <p>Corporations owning land, part of wliicli they leased for mining purposes distributing the rent and royalties among their stockholders, which had and exercised the right under the leases to inspect The work in the mines as it proceeded, made sales of real estate, sold stumpage from some of the property, leased properties and took leases from squatters in order to more easily evict them, and explored the property for ore, were “doing business” so as to subject them to the federal corporation tax, whether the acts of inspecting and selling the property were performed through their officers or through other corporations employed by them.</p> <p>[Ed. Note.—For other cases, see Internal Revenue, Cent. Dig. §§ 13-2S; Dec. Dig. § 9.*</p> <p>For other definitions, see Words and Phrases, vol. 3, pp. 2155-2160; vol. 8, pp. 7640, 7641.]</p> <p>2. Internal Revenue (§ 9*)—Corporation Tax—“Organized fob Profit.”</p> <p>■ Corporations organized to acquire title to an estate for the inirpose of liquidating it and dividing the. proceeds among the owners were “organized for profit” within the corporation tax law, especially where they were first organized under the statutory provisions relative to corporations organized for profit, although they later amended their articles of incorporation to describe their purpose as being to unite in one ownership the undivided fractional interests of the various stockholders in lands, tenenients, and hereditaments, to own such property, and for the convenience of their stockholders to receive and distribute among them the proceeds of any disposition of such property, since any corporation organized by private persons for their own advantage and interest and not for social, charitable, or beneficent purposes is organized for profit.</p> <p>[Ed. Note.—-For other cases, see Internal Revenue, Cent. Dig. §§ 13-28; Dec. Dig. § 9.*]</p> <p>•3. Corporations (§ 439*)—Powers—Sale of Pro