Edward Terry Sanford,
Willcuts v. Milton Dairy Company…
“ Hence, where the capital is impaired, profits, though earned and remaining in the business, if insufficient to offset this impairment do not constitute 'undivided profits.' We cannot doubt that this term was used in clause (3) with its ordinary meaning, nor agree with the view of the Circuit Court of Appeals that the arbitrary definition given by the Act to the term 'invested capital' not equivalent to that of the ordinary invested capital of commerce, indicates that the words 'surplus and undivided profits' were not used with their ordinary meaning as conditioned by an excess of assets. ”
