STONE, Circuit Judge.
The P. L. Howe Lumber Mills was a Montana corporation engaged in the manufacture of lumber. Between 1906 and 1919, respondent acquired about 96 per cent. of the outstanding capital stock of the mills company at a cost of $264,900. For many years prior to 1923, respondent had operated the mills company as a branch of its business. Becoming financially embarrassed, the mills company, on May 1, 1922, entered into an agreement to protect its creditors...
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