HELVERING v. COMMUNITY BOND & MORTGAGE CORPORATION

No. 79.

74 F.2d 727 (1935)

HELVERING, Commissioner of Internal Revenue, v. COMMUNITY BOND & MORTGAGE CORPORATION.

Circuit Court of Appeals, Second Circuit.

January 7, 1935.


Attorney(s) appearing for the Case

Frank J. Wideman, Asst. Atty. Gen., and Sewall Key and John G. Remey, Sp. Assts. to Atty. Gen., for petitioner.

John Hutchinson (Tilson, Frodel, Stanley & McCuen, Alfred C. Frodel, and Dean Hill Stanley, all of Washington, D. C., J. Gregory Lynch, of Waterbury, Conn., of counsel), for respondent.

Before MANTON, L. HAND, and CHASE, Circuit Judges.


MANTON, Circuit Judge.

The respondent is a Connecticut corporation dealing in second mortgage loans on real estate. Burns & Steta, Inc., a corporation, on August 20, 1925, entered into an agreement with the respondent, whereby it became its exclusive selling agent of the shares of the respondent's stock. During the year, the arrangement proved harmful and embarrassing to the respondent because of the sales methods used by the agent. Concluding that its reputation...

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