Bethlehem Silk Co. v. Commissioner

BIGGS, Circuit Judge.

Early in 1936 the petitioner, a manufacturer with its principal office at Bethlehem, Pennsylvania, and with another office in New York City, made an application for a loan from the Federal Reserve Bank of Philadelphia. On March 25, 1936, the bank wrote a letter to the petitioner stating that it had approved a loan to the petitioner subject to a number of conditions. Some of these conditions plainly were to be fulfilled before the loan was made; some, imposed duties upon the taxpayer to be performed by it after the consummation of the loan. The loan was to be secured by a…