Central Foundry Co. v. Commissioner

OPINION

Ratjm, Judge:

Central Foundry Co., the petitioner herein, is a publicly held corporation engaged in the business of manufacturing cast-iron soil pipe and fittings. Its stock is listed on the New York Stock Exchange. In May 1959, after a long and bitterly fought contest for the proxies of Central’s 4,900 shareholders, a group of stockholders-(the “committee”) succeeded in ousting incumbent management from control of Central’s board of directors. The dominant member of the committee, Gondelman, became chairman of the board, and another committee member, Farber, became vice chairman.…