Helvering v. Community Bond & Mortgage Corporation

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 in the community was impaired, that business was diverted, and its success endangered by continuation of this agency, it decided to…