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WARNER v. COMMISSIONER OF INTERNAL REVENUE

No. 458.

66 F.2d 407 (1933)

WARNER v. COMMISSIONER OF INTERNAL REVENUE.

Circuit Court of Appeals, Second Circuit.

July 25, 1933.

Attorney(s) appearing for the Case

Arthur M. Marsh, of Bridgeport, Conn. (Marsh, Stoddard & Day, of Bridgeport, Conn., of counsel), for petitioner.

Sewall Key and Francis H. Horan, Sp. Assts. to Atty. Gen. (C. M. Charest, Gen. Counsel, Bureau of Internal Revenue, and Arthur Carnduff, Sp. Atty., Bureau of Internal Revenue, both of Washington, D. C., of counsel), for respondent.

Before L. HAND, AUGUSTUS N. HAND, and CHASE, Circuit Judges.

CHASE, Circuit Judge.

The petitioner, a resident of Bridgeport, Conn., is the owner of both preferred and common stock in the Warner Bros. Company, a corporation having its principal place of business at Bridgeport. It is a corporation whose common stock is closely held within the Warner family. Its preferred stockholders include employees of the corporation and others not members of the Warner family. In 1926, it was decided to change its capital structure. The details...

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