Founders General Corp. v. Hoey

GODDARD, District Judge.

This action, equivalent to a demurrer, raises the question whether the facts alleged in the complaint disclose a transaction subject to the documentary stamp tax which was assessed and collected from the plaintiff under Schedule A (3) of section 800 of the Revenue Act of 1926 (26 USCA § 921 (b) (1). The facts alleged may be summarized as follows:

On September 10, 1929, plaintiff made a written agreement with an electric power corporation, hereinafter referred to as the issuing corporation, to subscribe at the price of $13.50 per share for 100,000 shares of the issuing…