Andrews-Bradshaw Co. v. United States
In Andrews-Bradshaw Co. v. United States, 65 Ct. Cl. 354, one stockholder, a lawyer, holding 22.4 per cent. of the stock, did not devote his entire time to the business.
Another stockholder holding the same amount of stock was engaged in the air service in France during the war and was not active.
The court laid considerable stress on the fact that one of the stockholders was precluded from personal activities by service in the army abroad during the war and indulged the presumption that he should be considered an active member of the corporation, and that the combined holdings of three stockholders, including the soldier, totaled 77.6 per cent., and permitted the company to be classified as a personal service corporation; the three stockholders being the principal stockholders.