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TAIT v. WESTERN MD. RY. CO.

No. 842.

289 U.S. 620 (1933)

53 S.Ct. 706

77 L.Ed. 1405

TAIT, COLLECTOR OF INTERNAL REVENUE, v. WESTERN MARYLAND RAILWAY CO.

Supreme Court of United States.

Decided May 29, 1933.

Attorney(s) appearing for the Case

Mr. Whitney North Seymour, with whom Solicitor General Biggs and Messrs. Sewall Key and J. Louis Monarch were on the brief, for petitioner.

Messrs. Eugene S. Williams and Wm. C. Purnell for respondent.

By leave of Court, Mr. John J. Finnorn filed a brief as amicus curiae.

MR. JUSTICE ROBERTS delivered the opinion of the Court.

Between the years 1902 and 1908 The Western Maryland Rail Road Company, a Maryland corporation, sold and issued at a discount, large amounts of its first mortgage bonds. In foreclosure proceedings under a second mortgage its entire property was sold to a reorganization committee representing second mortgage bondholders, and a new company formed under the name The Western

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