Almours Secur., Inc. v. Commissioner

Petitioner, formed in 1926, issued substantially all of its capital stock (except stock dividends later issued) for securities owned by Alfred I. du Pont, his wife, and brother-in-law. It retained nearly all of these securities and acquired others out of earnings through 1932. Most of its income from the date of organization to the end of 1932 was from dividends and from profits upon the sale of shares of stock of E. I. du Pont de Nemours, Inc. From the date of organization to the end of 1932 only small amounts of its aggregate profits were distributed to its stockholders as cash dividends.…