franked envelope bearing a return card, addressed to the corporation at the place of its principal office, and not returned, was presumptively received, and the burden rested on the corporation to prove to the contrary, to avoid the penalty.

The following synopsis of decisions made from time to time was published for the information of internal revenue officers and others concerned by the Commissioner on Dec. 15, 1911, and will be found in 21 Treas. Decis. (1742). As previously stated, some of these decisions are not applicable to the present law.

CLASS OF CORPORATIONS, ETC., SUBJECT TO TAX.

1. The tax imposed by the act applies to all corporations, joint stock companies, and associations, and every insurance company except those specifically exempted, without reference to the kind of business carried on.

2. Every corporation, etc., not specifically enumerated as exempt shall make the return required by law, although its net income during the year may not have exceeded the statutory amount. 28 Atty. Gen., Op. 140. See United States v. Acorn Roofing Co., 23 Treas. Decis. (1784).

3. Corporations claiming special exemption should nevertheless make return (in blank, if desired) accompanied by a statement setting forth the ground on which exemption is claimed. Failure to receive blanks upon which to make return is no excuse for delinquency in making return, as there is no duty imposed upon the Government to furnish corporations with such blanks.

4. Charitable institutions supported by voluntary contributions or State appropriations are held to be exempt from the payment of the special excise tax on corporations, but should file a return in blank as provided in paragraph 3 thereof.

5. Corporations, etc., organized during the year or going into liquidation during the year should nevertheless render a sworn return on the prescribed form. The tax imposed, however, does not apply to corporations which went out of existence prior to the passage of the act (Aug. 5, 1909).

6. Where company has dissolved and the required return is not made by its officers, such return will be prepared by commissioner. (T. D. 1736.)

7. Where corporation has gone into bankruptcy, returns in such cases to be made by trustee in bankruptcy.

8. Railroad companies operating leased or purchased lines to include all receipts derived therefrom, and if bonded indebtedness has been assumed may deduct interest thereon to an amount not exceeding its own paid-up capital stock. If such subsidiary companies receive income in the way of rentals, etc., return to be also made by such companies.

9. Corporations, etc., organized under the authority of the United States, or any State or Territory thereof, or Alaska, or the District of Columbia, to include in their returns not only the income derived from the business carried on within the confines of the United States, but income received from business. transacted in any foreign country as well.

10. Corporations having branch or subsidiary companies to include in their returns the income of all such companies when no distinction is made in operating and accounting by reason of the separate incorporation of such subsidiary companies; otherwise a return by each corporation should be made.

11. Foreign companies having several branch offices in the United States should each designate one of such branches as its principal office and should also designate the proper officers to make the required return.

12. Where a consolidation of two or more

corporations has been effected during the year, and each or any such corporation subsequent to such consolidation collects prior existing debts, each such corporation should make separate return and include therein all such collected debts, as also all income received during the year prior to the date of consolidation.

13. "Principal place of business" is held to mean the principal office where the company keeps its books from which the required return is to be prepared and not necessarily the place where the operating plant is located.

14. As the law specifically provides that the tax imposed shall be computed on the net income during each calendar year, returns of income based on any period other than the calendar year cannot be accepted.

15. Full amount of stock, as represented by the par value of the shares issued, to be regarded as the paid-up capital stock, except when such stock is assessable on account of deferred payments, in which case the amount actually paid on such shares will constitute the actual paid-up capital stock of the corporation.

16. Capital stock held to include both preferred and common stock.

17. Surplus and undivided profits not to be included in capital stock.

18. Holding companies known as "voting

trusts," receiving only dividends on stock held, and having no capital stock, etc., not liable. But see now pp. 8, 125.

19. Mutual savings banks having no capital stock not liable to tax imposed. (28 Atty. Gen. Op. 189.)

20. Coöperative dairies not issuing stock and allowing patrons dividends based on butter fat in milk furnished not liable.

21. Foreign steamship companies having no office in the United States, whose vessels only occasionally touch at ports in the United States, not regarded as doing business in this country within the meaning of the statute.

In an opinion of the Attorney General it was held that the act includes "foreign steamship companies having agencies in this country and engaged in the business of transporting passengers, freight or mail; that as the tax so imposed is not upon the property of the corporation or the income derived therefrom, but is a special excise tax with respect to the carrying on or doing business, such tax, as applied to the business so carried on by such foreign steamship companies, is not upon exports or upon the income derived from the transportation of such exports." 19 Treas. Decis. (1600).