William O. Douglas

“ When the equity owners are excluded and the old creditors become the stockholders of the new corporation, it conforms to realities to date their equity ownership from the time when they invoked the processes of the law to enforce their rights of full priority. ”

“ Insolvency reorganizations are within the family of financial readjustments embraced in those terms as used in this particular statute. Some contention, however, is made that this transaction did not meet the statutory standard because the properties acquired by the new corporation belonged at that time to the committee and not to the old corporation. ”

“ We granted the petition for certiorari, 314 U.S. 598, 62 S.Ct. 101, 86 L.Ed. --, because of the conflict between that decision [2] and Commissioner v. Palm Springs Holding Corp., 119 F.2d 846, decided by the Circuit Court of Appeals for the Ninth Circuit and Helvering v. New President Corp., 122 F.2d 92, decided by the Circuit Court of Appeals for the Eighth Circuit. ”