The taxpayer acquired various timber limits with a view to cutting the merchantable timber into lumber in a mill to be erected by it, and sold some of the timber limits after its learned that they were not suitable for its proposed feeder mill. In finding that it realized the gains on capital account, notwithstanding that its memorandum of association authorized the dealing in timber limits, Locke J. stated (p. 1161):
"The question to be decided is not as to what business or trade the company might have carried on under its memorandum, but rather what was in truth the business it did engage in."