Commissioner of Internal Revenue v. Merchants' & Manufacturers' Fire Ins.

THOMPSON, Circuit Judge.

This is a petition for review of a decision of the Board of Tax Appeals. The taxpayer, a stock fire insurance company, bought at various times shares of stock of Corn Products Refining Company, Standard Oil Company of California, Brooklyn Union Gas Company, and American Can Company. The taxpayer deposited this stock with the American Trust Company. The purchases were made on a rising market, and therefore the stock first acquired cost less than the later purchases.

Sales of securities were decided upon by the executive and finance committee of the taxpayer’s board of…