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DAVIS v. COMMISSIONER OF INTERNAL REVENUE

Nos. 6842-6844.

81 F.2d 137 (1936)

DAVIS v. COMMISSIONER OF INTERNAL REVENUE. MILLER v. SAME. KRAUS v. SAME.

Circuit Court of Appeals, Sixth Circuit.

January 10, 1936.

Attorney(s) appearing for the Case

Fred A. Behr and John R. Watkins, both of Detroit, Mich. (Frank W. Coolidge, of Detroit, Mich., on the brief), for petitioners.

W. F. Wattles, of Washington, D. C. (Frank J. Wideman, Sewall Key, Norman D. Keller, and E. W. Pavenstedt, all of Washington, D. C., on the brief), for respondent.

Before MOORMAN, HICKS, and ALLEN, Circuit Judges.

MOORMAN, Circuit Judge.

Hugo Scherer was the owner of the Hugo Scherer Land Company, the Detroit Forging Company and the St. Clair-Athol Rubber Company. Petitioners were employees of the Scherer Company. In November of 1923 Scherer died, leaving a will in which he devised all of his property to his wife and two daughters. About four months later his wife and daughters made a contract with petitioners by which the petitioners agreed to organize a new corporation, Davis...

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