General Utilities & Operating Co. v. Helvering

January 1st, 1927, petitioner — General Utilities, a Delaware corporation — acquired 20,000 shares (one-half of total outstanding) common stock Islands Edison Company, for which it paid $2,000. Gillet & Company owned the remainder.

During January, 1928, Whetstone, President of Southern Cities Utilities Company, contemplated acquisition by his company of all Islands Edison common stock. He discussed the matter with Lucas, petitioner’s president, also with Gillet & Company. The latter concern agreed to sell its holdings upon terms acceptable to all. But Lucas pointed out that the shares which…