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WARREN SERVICE CORP. v. COMMISSIONER OF INTERNAL REV.

No. 204.

110 F.2d 723 (1940)

WARREN SERVICE CORPORATION v. COMMISSIONER OF INTERNAL REVENUE.

Circuit Court of Appeals, Second Circuit.

March 25, 1940.

Attorney(s) appearing for the Case

Robert E. Coulson, James K. Polk, and Talbert W. Sprague, all of New York City, for petitioner.

Samuel O. Clark, Jr., Asst. Atty. Gen., and Sewall Key and Maurice J. Mahoney, Sp. Assts. to Atty. Gen., for respondent.

Before SWAN, AUGUSTUS N. HAND, and PATTERSON, Circuit Judges.

SWAN, Circuit Judge.

In August 1926 Warren Service Corporation, as lessor, entered into an agreement of lease with Warren-Nash Motor Corporation, as lessee, by the terms of which the lessor was to acquire certain real estate, erect thereon a building of specialized design and lease the premises for a fifteen year term at an average annual net rental of $125,000. The land cost $300,000 and the cost of erecting the building...

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