This is a list of cases reported in volume 302 of United States Reports, decided by the Supreme Court of the United States in 1937 and 1938. Justices of the Supreme Court at the time of volume 302 U.S. The Supreme Court is established by Article III, Section 1 of the Constitution of the United States, which says: "The judicial Power of the United States, shall be vested in one supreme Court . . .". The size of the Court is not specified; the Constitution leaves it to Congress to set the number of justices. Under the Judiciary Act of 1789 Congress originally fixed the number of justices at six (one chief justice and five associate justices). Since 1789 Congress has varied the size of the Court from six to seven, nine, ten, and back to nine justices (always including one chief justice). When the cases in volume 302 were decided the Court comprised the following nine members: Notable Cases in 302 U.S. Bogardus v. Commissioner of Internal Revenue In Bogardus v. Commissioner of Internal Revenue, 302 U.S. 34 (1937), the Supreme Court held that a distribution of money by a corporation to the company's past and present employees who had no current ties with the corporation, in recognition of their past service, was a non-taxable gift and not "compensation for personal services". James, State Tax Commissioner v. Dravo Contracting Company In James, State Tax Commissioner v. Dravo Contracting Company, 302 U.S. 134 (1937), the Supreme Court held that a state's corporate income tax did not violate the Supremacy Clause (Article Six, Clause 2) of the United States Constitution by taxing the Federal government of the United States. It was the first time the Court had upheld a tax on the federal government. The decision is considered a landmark in the field of federal tax immunity, underpins modern legal interpretations of the Supremacy Clause in the U.S. Constitution, and established the "legal incidence test" for tax cases. Puerto Rico v. Shell Company (P.R.), Ltd. Puerto Rico v. Shell Company (P.R.), Ltd., 302 U.S. 253 (1937), is a notable Supreme Court of the United States case. The issue was whether a local ("insular") law could be pre-empted by the Commerce clause of the United States Constitution. It was also notable as being one of the first cases that determined that Puerto Rico can be treated as if a state for some