B. F. Goodrich Co. v. United States

This is an appeal from a judgment of the United States District Court in favor of the Government, upon a suit for recovery of additional manufacturer’s excise tax assessed against and paid by appellant’s predecessor in interest, Pacific Goodrich Rubber Company.

The action was tried upon a stipulation of facts and no dispute exists between the parties thereon. The Pacific Goodrich Rubber Company, a Delaware corporation (herein referred to, for convenience, as the “Pacific Company”), was at all times prior to its dissolution the wholly owned subsidiary of appellant, the B. F. Goodrich Company (herein referred to as the “Goodrich Company”).

Pursuant to Section 16(a) of the Agricultural Adjustment Act 1 - (Act May 12, 1933, Ch. 25, Title I, § 16, 48 Stat. 40 , 7 U.S.C.A. § 616 ), Pacific Company was required to pay a tax upon the sale or disposition of any article processed wholly or in chief value from cotton, which it had on hand on August 1, 1933 (the date the processing tax on cotton went into effect by proclamation of the Secretary of Agri *458 culture), in an amount equivalent to the tax which would have been paid on said cotton had it actually been processed after August 1,…