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BURNS v. COMMISSIONER OF INTERNAL REVENUE

No. 6681.

76 F.2d 937 (1935)

BURNS v. COMMISSIONER OF INTERNAL REVENUE.

Circuit Court of Appeals, Sixth Circuit.

April 12, 1935.

Attorney(s) appearing for the Case

George P. Bickford, of Cleveland, Ohio (A. C. Dustin, A. M. Van Duzer, and McKeehan, Merrick, Arter & Stewart, all of Cleveland, Ohio, on the brief), for petitioner.

L. A. Buck, of Washington, D. C. (only Frank J. Wideman, Sewall Key, and Carlton Fox, all of Washington, D. C., on the brief), for respondent.

Before MOORMAN, HICKS, and ALLEN, Circuit Judges.

MOORMAN, Circuit Judge.

In 1922 the Sandusky Cement Company acquired a deposit of limestone at Silica, Ohio. The only railroad serving Silica was the Toledo, Angola & Western Railway Company, which was without adequate facilities and was insolvent. The cement company purchased all the capital stock and bonds of the railway company for $175,000, paying $25,000 in cash and executing for the remainder five promissory notes of $30,000 each, payable in one, two, three...

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