FAIRMONT CREAMERY CORPORATION v. HELVERING

No. 6678.

89 F.2d 810 (1937)

FAIRMONT CREAMERY CORPORATION v. HELVERING.

United States Court of Appeals for the District of Columbia.

Decided February 15, 1937.


Attorney(s) appearing for the Case

Frank L. Warfield, of Washington, D. C., for petitioner.

Robert H. Jackson, Asst. Atty. Gen., and J. Louis Monarch, A. F. Prescott, Sewall Key, Harold D. Thomas, Herman Oliphant, and Louise Foster, all of Washington, D. C., for respondent.

Before MARTIN, Chief Justice, and ROBB, VAN ORSDEL, GRONER, and STEPHENS, Associate Justices.


GRONER, J.

This is an income tax case. Petitioner is a Delaware corporation with its principal office in Omaha, Neb. Its board of directors adopted a resolution in April, 1929, inviting employees to subscribe to the corporation's common capital stock. The price was to be $26 per share, of which $2 was to be paid in cash. The balance was to be evidenced by notes with interest at 6 per cent., payable quarterly, the principal of the notes to be payable at the rate of...

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