Fulton's Ex'rs v. Commissioner

MARTIN, Chief Justice.

The sole question involved in these cases is whether certain cash payments received by appellants in the course of the consolidation of two national banks, in one of which appellants were stockholders, were paid to appellants as dividends, or as part • consideration in an exchange of the stock entering into the consolidation. The appellants claim that the payments in question fall within the latter description, and are not directly assessable as income because of the provisions of section 202(e)(2) and section 202(e) of the Revenue Act of 1921 (42 Stat. 227). The…