J. K. HUGHES OIL CO. v. BASS

No. 6705.

62 F.2d 176 (1932)

J. K. HUGHES OIL CO. v. BASS, Collector of Internal Revenue.

Circuit Court of Appeals, Fifth Circuit.

December 13, 1932.


Attorney(s) appearing for the Case

Harry C. Weeks, of Wichita Falls, Tex., for appellant.

Wright Matthews, Sp. Atty., Bureau of Internal Revenue, of Washington, D. C., and John D. Hartman, U. S. Atty., of San Antonio, Tex., for appellee.

Before BRYAN, SIBLEY, and HUTCHESON, Circuit Judges.


HUTCHESON, Circuit Judge.

Appellant is the owner of oil-producing properties. In its fiscal year ending June 30, 1922, it made "turnkey" contracts at a fixed price of $22,500 each, with a drilling contractor, for the drilling of thirteen oil wells. These contracts obligated the contractor "to furnish all derricks, all necessary drilling equipment, machinery, casing, cement and labor, in fact, everything necessary to complete said well in a first-class workmanlike...

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