Commissioner of Internal Revenue v. Spaulding Bakeries Incorporated

GALSTON, District Judge.

The question involved is substantially one of law, and of law only, for the facts, have been stipulated. Basically, the question presented involves an interpretation-of Section 112(b) (6) of the Internal Revenue Code of 1939, 26 U.S.C.A. § 112(b) (6). The problem presented hinges upon an investment which the respondent, made in the purchase over a period of' years of shares of the capital stock of' Hazleton Bakeries, Inc.

Hazleton Bakeries, Inc. (herein referred to as “Hazleton”) was organized, in 1927 in Delaware, and its certificate of incorporation authorized the…