Oliver Wendell Holmes, Jr.

“ If the State of Arkansas wished to discourage but not to forbid the holding of stock in one corporation by another and sought to attain the result by this tax, or if it simply saw fit to make corporations pay for the privilege, there would be nothing in the Constitution to hinder. A discrimination between corporations and individuals with regard to a tax like this cannot be pronounced arbitrary, although we may not know the precise ground of policy that led the State to insert the distinction in the law. ”

“ We are of opinion that it also is within the power of a State, so far as the Constitution of the United States is concernied, to tax its own corporations in respect of the stock held by them in other domestic corporations, although unincorporated stockholders are exempt. A State may have a policy in taxation. ”

“ New Orleans, 96 U.S. 97, 106, 24 L. Ed. 616; Tennessee v. Whitworth, 117 U.S. 129, 136, 137, 6 Sup. Ct. 645, 29 L. Ed. 830; St. Louis Southwestern Ry. Co. v. Arkansas, 235 U.S. 350, 367, 368, 35 Sup. Ct. 99, 59 L. Ed. 265. ”