SIXTY—FOURTH CONGRESS. Sess. I. Ch. 463. 1916. 767 Ninth. Club organized and operated exclusivel for Ieasure rec- ”'°°“°‘·¤- reation, and other nonproiitable purposes, no paris, of tlib net inizome m°°mmmbS’°t°' of which inures to the enefit of any rivate stockholder or member; Tenth. Farmers’_or other mutual§1ail, cyclone, or hre insurance ci£§.,'T§”" l°°‘l““" company, mutual ditch or irrigation company, mutual or cooperative telephone company, or like organization of a purely local character, the income of which consists solely of assessments, dues, and fees collected from members for the sole purpose of meeting its expenses _ Eleventh. Farmers}, fruit growers’, or like association, organized miliiiaiixiiiliiiunyiriiii and ope_rated as a sales agent_for the purpose of marketing the prod- “°‘°· ucts of its members and tuming back to them the rocee s of sales, gélegdlgizig leelltiilignexpenses, on the basis of) the quantity of } Twelfth. Corporation or association oxiganizedfor the exclusive 0'"[ *°,*;j,{g’ °x°¤P* pucxipose of holding title to property, co ecting income therefrom, an turning over the entu·e amount thereof, ess expenses, to an eiiegamzation which itself is exempt from the tax imposed by this e; or _ Thirteenth._Federal land banks and national farm-loan associa- ,m§°{’_§,’f*,*,},*;‘,,dasg*$; tions as provided m section twenty-six of the Act approved July ticpgie 380 seventeenth, nineteen hundred and sixteen, entitled "An Act to pro- ’p‘ ‘ vide capital for agricultural development, to create standard forms of mvestment based upon mortlgage, to equalize rates of mterest upon farm loans, to urngsh a mar et for United States bonds, to grieite Goylepnemgp depositaries and financial agents for the United es, an or 0 er oses.’ Fourteenth. Joint wk land banks as to income derived from b,{fk'Q* “°°k ‘•¤** bonds or debentures of other joint stock land banks or any Federal Ami. p- 314. land bank belonging to such joint stock land bank. (b) There sha not be taxed under this title any income derived ,,,§“‘}‘;‘§;‘ P$,‘,,,,§*3{f,=,; from any public utility or from the exercise of any essential govern- tieéi mental unction accruinv to any State, Territory, or the District of Columbia, or any pollilticali subdivisim} olfl agtialtie or Terriitoy, noir; any income accruing tot egovernmento the f ine s an sor orto Rico, or of any political subdivision of the ilgliilippine Islands or Porto Rico: Provided, That whenever any State, erritory, or the fgyjgfédudomm, District of Columbia, or any political subdivision of a State or Ter- c¤¤mc¢s. ritory, has, prior to the passage of this title, entered good faith . into a contract with any person or corporation, the object and purpose of which IS to acquire, construct, operate, or mamtam a public utility, no tax shall be levied under the provisions of this title upon thehincome clergypld frem iepe operatien of lsiiph (public utility}, ge fgar as e amen ereo w imoseaosso urenu nsuc ae 'I`errito}-fyi, or the District of Ciilumbia, or a politicalpgubdivision of a State or Territory; but this provision is not intended to confer upon L**°**·***°"’· such person or corporation any financial gain or exemption or to relieve such person or corporation from the payment of a tax as provided for in this title upon the part or portion of the said income to which such person or corporation shall be entitled under such contract. nnnccrroxs. 1>¤<i¤<=ti¤¤¤- Sec. l2. (a) the case of a corporation, Joint-stock eompany or ,,_.£’,s°j‘}§§ffg§§{g’;},{,§,[ association, or insurance company, or anize in the United States, ¤¤¤~ such net income shall be ascertained gby deducting from the gross amount of its income received within the year from all so1u·ces——- First. All the ordinary and necessary expenses paid within the year B“’*“°“°‘l’°“S°s· in the maintenance and operation of its business and properties, includinglrentals or (ether payments reqipred to be madeuael ahcondition to the continue use or ossession o ro rty to w °c the corporation has not taken or ispnot taking t.il.leFbr in which it has no equity.
