rted, must first be restored
from the proceeds before there is a capital gain taxable as income.
Accordingly, a dredging contractor, recovering a judgment for breach of
warranty of the character of the material to be dredged, must include
the amount thereof in the gross income of the year in which it was
received, rather than of the years during which the contract was
performed, even though it merely represents a return of expenditures
made in performing the contract and resulting in a loss. The gain or
profit subject to tax under the Sixteenth Amendment is the excess of
receipts over allowable deductions during the accounting period, without
regard to whether or not such excess represents a profit ascertained on
the basis of particular transactions of the taxpayer when they are
brought to a conclusion.--Burnet _v._ Sanford & B. Co., 282 U.S. 353
(1931).

[45] 274 U.S. 259 (1927).

[46] 42 Stat. 227, 250, 268.

[47] 274 at 263.

[48] 327 U.S. 404 (1946).

[49] 343 U.S. 130 (1952).

AMENDMENT 17

POPULAR ELECTION OF SENATORS

Page
Historical origin 1207
Right to vote for Senators 1208

POPULAR ELECTION OF SENATORS

Amendment 17

Clause 1. The Senate of the United States shall be composed of two
Senators from each State, elected by the people thereof, for six years;
and each Senator shall have one vote. The electors in each State shall
have the qualifications requisite for electors of the most numerous
branch of the State legislatures.

Clause 2. When vacancies happen in the representation of any State in
the Senate, the executive authority of such State shall issue writs of
election to fill such vacancies: _Provided_ That the legislature of any
State may empower the executive thereof to make temporary appointments
until the people fill the vacancies by election as the legislature may
direct.

Clause 3. This amendment shall not be so construed as to affect the
election or term of any Senator chosen before it becomes valid as part
of the Constitution.

Historical Origin

The ratification of this amendment was the outcome of increasing popular
dissatisfaction with the operation of the originally established method
of electing Senators. As the franchise became exercisable by greater
numbers of people, the belief became widespread that Senators o