Eisner v. Macomber

Myrtle Macomber (plaintiff) owned 2,200 shares of Standard Oil of California and received an additional 1,100 shares as a 50% stock dividend reflecting the company's growth; she received no cash, and her proportionate ownership share in the company was unchanged. The government (defendant) sought to tax her on the value of the new shares under the Revenue Act of 1916; the district court ruled for Macomber, and the Supreme Court granted certiorari.