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DONEGHY v. ALEXANDER

Nos. 2157, 2158.

118 F.2d 521 (1941)

DONEGHY et al. v. ALEXANDER, Formerly Collector of Internal Revenue. SAME v. JONES, Collector of Internal Revenue.

Circuit Court of Appeals, Tenth Circuit.

March 6, 1941.

Attorney(s) appearing for the Case

Chas. H. Garnett, of Oklahoma City, Okl. (W. K. Garnett, of Oklahoma City, Okl., on the brief), for appellants.

Fred E. Youngman, Sp. Asst. to Atty. Gen. (Samuel O. Clark, Jr., Asst. Atty. Gen., Sewall Key and Paul S. McMahon, Sp. Assts. to Atty. Gen., and Charles E. Dierker, U. S. Atty., of Oklahoma City, Okl., on the brief), for appellees.

Before BRATTON, HUXMAN, and MURRAH, Circuit Judges.

BRATTON, Circuit Judge.

These cases involve the income tax liability of J. C. Doneghy for the year 1930. Doneghy Investment Company was a corporation organized in 1904 for the purpose of dealing in lands and interests in lands in the Indian Territory. Its authorized capital stock was $100,000 divided into 4000 shares of the par value of $25.00 each. Doneghy paid $51,000 in cash and acquired 2040 shares. Others paid $29,000 and acquired 1160 shares. Doneghy thus owned...

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