Elisian Guild, Inc. v. United States

McENTEE, Circuit Judge.

The issue presented in this case is whether the plaintiff corporation, Elisian Guild, Inc., is exempt from federal income taxes under 26 U.S.C. § 501(c) (3) by reason of its religious or educational activities. The facts pertinent to the controversy, largely stipulated, are as follows.

Elise Nevins Morgan, the author of various short works of a religious nature, 1 died in 1954. Her husband, William Finlay Morgan, continued to distribute the books upon request from the dwindling supply that remained. Thereafter, in 1960 it came to Morgan’s attention that excerpts from his…