First Kentucky Company v. Gray

BROOKS, Chief Judge.

This action is submitted on the record which includes a stipulation of facts. The briefs of the parties have been considered.

At the time the plaintiff-taxpayer purchased the Missouri Pacific Railroad Company bonds involved in this case a. considerable amount of accrued interest was in default. The bonds were quoted' for sale at a “flat” price, which means, a sale for one specified sum without distinction as between principal and interest, and were purchased and subsequently sold by the taxpayer at a “flat” price. At the time of sale a substantial amount. of interest…