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S. NAITOVE & CO. v. COMMISSIONER OF INTERNAL REVENUE

No. 4768.

32 F.2d 949 (1929)

S. NAITOVE & CO., Inc., v. COMMISSIONER OF INTERNAL REVENUE.

Court of Appeals of District of Columbia.

Decided May 6, 1929.

Attorney(s) appearing for the Case

R. Kemp Slaughter and Hugh C. Bickford, both of Washington, D. C., and Robert E. Coulson, of New York City, for appellant.

Mabel W. Willebrandt, Asst. Atty. Gen., and C. M. Charest, L. W. Scott, Sewall Key, and Millar E. McGilchrist, all of Washington, D. C., for appellee.

Before MARTIN, Chief Justice, and ROBB and VAN ORSDEL, Associate Justices.

VAN ORSDEL, Associate Justice.

Appellant, a New York corporation engaged in buying and selling woolen, silk, and cotton goods, had five employees who constituted the entire buying and selling staff of the business. These employees, dissatisfied with their compensation, threatened to go into business for themselves. To retain them, an agreement was entered into by the appellant and the employees under which they were to participate in the profits of the business. The...

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