Commissioner of Internal Revenue v. Aaron Ward & Sons

THOMPSON, Circuit Judge.

This is an appeal from an order of re-determination of the Board of Tax Appeals. In March,- 1916, the respondent, a New Jersey corporation, subscribed to 1,000 shares of the capital stock of the Fourteenth Ward Building & Loan Association, a domestic corporation. The respondent paid a membership fee of $1, at the time of the subscription and $97,000 in monthly installments of $1,-000 each, or an aggregate sum of $97,003. Thereafter it applied to the association for withdrawal of its investment, and on March 18, 1924, it received $129,840 from the association in full…