Reynolds

Plaintiffs, winners of a Ford automobile which they received from the Call Bulletin newspaper, seek to recover taxes which they paid upon the full value of the car. The parties have stipulated to the following facts:

In August. 1948 Dr. Reynolds learned that his name had been drawn in the “Lucky 49er Sweepstakes” conducted by the Call-Bulletin to promote circulation. Subscribers to the newspaper had been awarded, free of charge, a “Lucky 49er Certificate” upon payment of their monthly bills commencing July 1948. The certificate constituted a chance at the monthly sweepstakes drawing. It was not transferable and the person to whom it was issued had to be a subscriber at the time of the drawing. The winner had to have the certificate in his possession at the time of the drawing.

When the newspaper notified Dr. Reynolds of his award, and requested him to produce his July certificate the doctor learned that his maid had completed such a certificate in his name and that he was entitled to the automobile. Dr. Reynolds had been a subscriber prior to the drawing and continued to subscribe thereafter. Neither he nor his wife had personal knowledge of the sweepstakes, nor did they…