M. F. REDDINGTON CO. v. COMMISSIONER OF INTERNAL REV.

No. 11.

131 F.2d 1014 (1942)

M. F. REDDINGTON CO., Inc., v. COMMISSIONER OF INTERNAL REVENUE.

Circuit Court of Appeals, Second Circuit.

December 2, 1942.


Attorney(s) appearing for the Case

Harry J. Rudick, and Lord, Day & Lord, all of New York City, for petitioner.

Samuel O. Clark, Jr., Asst. Atty. Gen., and Sewall Key, J. Louis Monarch, and Morton K. Rothschild, Sp. Assts. to the Atty. Gen., for respondent.

Before L. HAND, CHASE and FRANK, Circuit Judges.


FRANK, Circuit Judge.

During the taxable year, Martin F. Reddington was president of taxpayer, a New York corporation, and owned 9,500 of the 18,000 shares of taxpayer's common stock. The remainder of the outstanding common stock of taxpayer was owned by Reddington's daughter. Reddington owned the entire outstanding preferred stock of taxpayer, consisting of 2,500 shares. Taxpayer was originally a going concern engaged in...

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