Irving v. United States

LITTLETON, Judge.

The question in this ease is whether the dividend of $15,100, representing plaintiff’s proportion of an 8 per cent, dividend declared by the Irving Worsted Company on Decem ber 30, 1922, was a cash or a stock dividend. We are of opinion upon the facts that it was a stock dividend.

The facts in this case bring it within the principle announced in United States v. Mellon (D. C.) 279 F. 910, affirmed (C. C. A.) 281 F. 645, and United States v. Davison (D. C.) 1 F.(2d) 465.

The Irving Worsted Company did not have sufficient cash or surplus to pay the 8 per cent, dividend to the…