City of New York v. Saper

The ultimate issue in these three cases is whether tax claims against a bankrupt bear interest until the date of bankruptcy, 1 as held by the court below, 2 or until payment, as previously held by another Court of Appeals. 3 We granted certiorari 4 to resolve the conflict, the matter being of considerable practical importance 5 in the administration of the Bankruptcy Act. 6

If the question were one of first impression to be decided in the light of the present statute alone, we should have no difficulty in affirming the court below. More than forty years ago Mr. Justice Holmes wrote for this…