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HOWARD v. COMMISSIONER OF INTERNAL REVENUE

No. 5863.

56 F.2d 781 (1932)

HOWARD v. COMMISSIONER OF INTERNAL REVENUE.

Circuit Court of Appeals, Sixth Circuit.

March 11, 1932.

Attorney(s) appearing for the Case

Harry C. Howard, of Kalamazoo, Mich., for petitioner.

Hayner N. Larson, of Washington, D. C. (G. A. Youngquist, Asst. Atty. Gen., and Sewall Key, S. Dee Hanson, C. M. Charest, and Nina N. Gluckstein, all of Washington, D. C., on the brief), for respondent.

Before HICKS and HICKENLOOPER, Circuit Judges, and TUTTLE, District Judge.

HICKENLOOPER, Circuit Judge.

Prior to 1922, petitioner had purchased, at par, $5,000 par value of the preferred capital stock of the Eddy Paper Company, a Michigan corporation. Thereafter the company became financially embarrassed and its capital was seriously impaired on November 5, 1922, when, in an effort to save some of the investment of its stockholders, the Eddy Paper Company, of Michigan, sold all of its assets to the Eddy Paper Corporation, organized under...

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