that is to have an operation before the making thereof, as to commence at an antecedent time, or to save time from the statute of limitations, or to excuse acts which were unlawful, and before committed, and the like, is retrospective. Calder v. Bull, 3 Dallas, 386. See also Ex parte Medley, 134 U. S. 160; United States v. 64 Barrels of Spirits, 3 Cliff. 308; Kille v. Reading Iron Works, 134 Penn. St. 225.

So a contract right under a statute is a vested right which cannot be impaired by a repeal of the statute. Steamship Co. v. Joliffe, 2 Wall. 450; Koshkonong v. Burton, 104 U. S. 668.

The established rule appears to be that a forfeiture takes place when the offence is committed, although in the early case announcing this rule Judge Story held, in a dissenting opinion, that a forfeiture attached to a thing conveys no property therein to the Government until seizure made or suit brought. United States v. 1960 Bags of Coffee, 8 Cranch, 398. See United States v. The Mars, 8 Cranch, 417.

It is competent for Congress to impose taxes retrospectively. Stockdale v. Ins. Cos., 20 Wall. 323; Locke v. New Orleans, 4 Wall. 172.

A statute which, after annual settlements, authorized county auditors in Ohio to extend back, for four years, inquiries as to property

returnable for taxation, was held constitutional. Sturges v. Carter, 114 U. S. 511.

But penalties added for such previous years are within a constitutional prohibition against retroactive laws. Gager v. Prout, 48 Ohio St. 89; Ryan v. State, 5 Neb. 276.

So penalties which have accrued for nonpayment of a tax, but which have been swept away by a repeal of the tax law, cannot be revived by new legislation. State v. Jersey City, 37 N. J. Law, 39.

An additional penalty may lawfully be prescribed for an act previously unlawful. Mackey v. Holmes, 52 Fed. Rep. 722.

The penalty of one hundred per cent imposed by the act of 1867 for fraudulent omission of taxable property from a return, could not be collected if the reassessment included a sum not legally taxed, or until the assessor had himself adjudged the omission to be false and fraudulent, and the penalty to have been incurred. Michigan Central R. Co. v. Slack, Holmes, 231.

Only one penalty is recoverable for all failures to make the required return prior to the commencement of a suit to recover the penalties for such failure. United States v. Brooklyn City & N. R. Co., 14 Fed. Rep. 294; United States v. New York Guaranty Co., 8 Ben. 269.

UNIV. OF

CORPORATION TAX- WHAT CORPORATIONS ARE EXEMPT.

[The provisions as to the corporation tax in the act of 1894, § 32, were much narrower than those of the act approved August 5, 1909, known as "The Corporation Tax" law (36 U. S. Sts. at Large, c. 6, pages 11, 112-117). Said § 32 was largely new. However, § 120 of the act of 1864, which imposed a duty of five per cent on dividends in scrip or money, was not materially changed by later acts. By § 15 of the act of 1870 there was to be levied and collected for and during 1871 "a tax of two and one half per centum on the amount of all interest or coupons paid on bonds or other evidences of debt issued and payable in one or more years after date, by" a portion of the corporations named in § 32 of the act of 1894, "and on the amount of all dividends of earnings, income, or gains," declared by them. The present act is largely founded on that of 1909.]

G. (a) That the normal tax hereinbefore imposed upon individuals likewise shall be levied, assessed, and paid annually upon the entire net income arising or

accruing from all sources during the preceding calendar year to every corporation, joint-stock company, or association, and every insurance company, organized in the United States, no matter how created or organized, not including partnerships; but if organized, authorized, or existing under the laws of any foreign country, then upon the amount of net income accruing from business transacted and capital invested within the United States during such year: Provided however, that nothing in this section shall apply to labor, agricultural, or horticultural organizations, or to mutual savings banks not having a capital stock represented by shares, or to fraternal beneficiary societies, orders, or associations operating under the lodge system or for the exclusive benefit of the members of a fraternity itself operating under the lodge system, and providing for the payment of life, sick, accident, and other benefits to the members of such societies, orders, or associations

and dependents of such members, nor to domestic building and loan associations, nor to cemetery companies, organized and operated exclusively for the mutual benefit of their members, nor to any corporation or association organized and operated exclusively for religious, charitable, scientific, or educational purposes, no part of the net income of which inures to the benefit of any private stockholder or individual, nor to business leagues, nor to chambers of commerce or boards of trade, not organized for profit or no part of the net income of which inures to the benefit of the private stockholder or individual; nor to any civic league or organization not organized for profit, but operated exclusively for the promotion of social welfare; Provided further, that there shall not be taxed under this section any income, derived from any public utility or from the exercise of any essential governmental function accruing to any State, Territory, or the District of Columbia, or any po