COMMISSIONER OF INTERNAL REVENUE v. HAGERMAN

No. 6768.

102 F.2d 281 (1939)

COMMISSIONER OF INTERNAL REVENUE v. HAGERMAN.

Circuit Court of Appeals, Third Circuit.

February 20, 1939.


Attorney(s) appearing for the Case

James W. Morris, Asst. Atty. Gen., and Sewall Key and F. E. Youngman, Sp. Assts. to Atty. Gen., for petitioner.

Joseph M. Hartfield, of New York City (Russell D. Morrill, Francis L. Casey, and White & Case, all of New York City, of counsel), for respondent.

Before DAVIS, MARIS, and THOMPSON, Circuit Judges.


DAVIS, Circuit Judge.

Prior to 1933, the taxpayer, Stanley Hagerman, acquired certain shares of stock of the First National Bank of the City of New York, hereinafter referred to as the bank. The stock of the bank, pursuant to a prior agreement entered into by all of the stockholders, carried with it, as evidenced by an endorsement thereon, a ratable interest in the First Security Company, the "security affiliate" of the bank. Due to certain provisions in the "Banking...

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