Harlan F. Stone,
Roberts Schaefer Company v. Emmerson…
“ Authorized capital stock cannot well be used as the measure of a tax unless some arbitrary value is assigned to the no par shares; for they may be issued from time to time at varying prices, and, until issued, they cannot have any value. To require the stock to be issued at a value fixed in advance of its issue, and to make that value the basis of the tax, would in effect abolish no par stock. ”
Harlan F. Stone,
Roberts Schaefer Company v. Emmerson…
“ It is argued that the tax imposed is a tax at a flat rate per share on no par value stock, regardless of its value, so that different corporations are taxed at different amounts although their no par stock was issued for the same total amount of capital; and that the tax is based upon an unreasonable and discriminatory classification in which no par value stock is placed in one class and taxed at an arbitrary valuation of $100 per share, while par value stock is placed in another class and taxed at the value at which it is authorized to be issued. ”
Harlan F. Stone,
Roberts Schaefer Company v. Emmerson…
“ The only question with which we need be concerned is whether there are such differences between the two privileges to issue the two classes of stock, as to constitute a proper basis for classification for purposes of taxation, so that the amount of the tax in the one case may be based on the issue price of the stock, and in the other upon the maximum price at which it may be issued regardless of the price at which it actually is issued. ”
