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Old February 15, 2009, 02:30 AM   #53
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Join Date: September 7, 2008
Posts: 550
Does this effect the state sovereignty issue?

The case of In re Merriam’s Estate, which was affirmed in the Supreme Court in United States v. Perkins, lays down a solid foundation for something far more ominous that the mere fact that the United States is a corporation:
“It is suggested that the United States is to be regarded as a domestic corporation, [*485] so far as the State of New York is concerned. We think this contention has no support in reason or authority. A domestic corporation is the creature of this state created by its legislature, or located here and created by or under the laws of the United States. (Code of Civil Pro., § 3343, sub. 18.) The United States is a government and body politic and corporate, ordained and established by the American people acting through the sovereignty of all the states.”
-- In re Merriam’s Estate, 36 N.E. 505 (1894).
In Volume 19, CJS (Corpus Juris Sec.) § 968 one finds the statement that “The United States government is a foreign corporation with respect to a State.” The above case is cited as the authority. That the United States is a foreign corporation is exactly what the court held. By affirming the decision, the United States Supreme Court concurred in U.S. v. Perkins, 163 U.S. 625 (1896). The legal definition of a "foreign corporation" is different from the colloquial use of the phrase.
Two attorneys made argument for the United States in the New York Court of Appeals. One attorney, Jesse Johnson, argued that “stock held by decedent in foreign corporations should not be included in the value on which the tax is to be levied.” However, Charles Baker argued that the “legacy in question on the death of the testator vested immediately in the United States, and became at once their property, free from liability to taxation.” Baker then confronted the court with an either/or position. Either the United States was not a corporation at all, and therefore not within the meaning of those terms employed in the New York laws, OR the United States was a domestic corporation entitled to all the privileges and immunities respectively. The court did not find for either argument. It held the United States was a corporation, it was not domestic, and was not immune from being taxed on the legacy of the estate. It further held that the tax imposed was on the right of succession and not on the property itself, rendering the United States argument with respect to stocks of foreign corporations completely moot. The Supreme Court affirmed New York’s holding by stating that the legacy became the property of the United States only after it had suffered a dimunation to the amount of the tax. However the Supreme Court also made clear that the United States was not one of the class of corporations intended by law to be exempt from taxation and that the United States was indeed a government corporation.
There is no arguing to the contrary. The United States is a foreign corporation. In fact, if one reads Title 28 USCS § 297, the “compact states” of subsection (a) are clearly defined as “countries” in subsection (b). So if the United States is a foreign corporation in relation to a group of “countries,” then what are the ramifications to those who have dual citizenship, especially when the foreign corporation formally enters into bankruptcy and becomes pledged to a third party creditor?
This is also supported by the statement; "The United States Government is a Foreign Corporation With Respect to a State", Volume 20, Corpus Juris Sec. § 1785 based on the definitions § 1783. "Definitions" and § 1784. "What Are Foreign Corporations".
For supporting material and evidence see the following with references...
"Essay on Citizenship"
"The United States Government is a Foreign Corporation With Respect to a State", Volume 20: Corpus Juris Sec. § 1785
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