United States v. California Electric Power Co.

ORR, Circuit Judge.

This appeal presents the question of, the taxability as an “original issue” -of certain preferred stock issued by appellee-taxpayer as part of an exchange for the. preferred stock outstanding prior to a recapitalization of the corporation. The stamp 'tax was imposed pursuant, to §§ 1800 and 1802 (a) of the Internal Revenue Code, 26 U.S.C.A. §§ 1800, 1802(a) (prior to the 1947 amendments), and was paid under protest. Appellee duly sued for a refund, and the Government now appeals from an adverse judgment. 1950, 89 F.Supp. 269.

Appellee is a corporation organized under the…