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BRAICKS v. HENRICKSEN

No. 189.

43 F.Supp. 254 (1942)

BRAICKS et al. v. HENRICKSEN, Acting Collector of Internal Revenue.

District Court, W. D. Washington, S. D.

February 14, 1942.

Attorney(s) appearing for the Case

JONES & BRONSON, of Seattle, Wash., for plaintiff.

J. Chas. Dennis, U. S. Atty., of Seattle, Wash., Harry Sager, Asst. U. S. Atty., of Sumner, Wash., and Thomas R. Winter, Sp. Asst. to the Chief Counsel, of Seattle, Wash., for defendant.

SCHWELLENBACH, District Judge.

In September, 1937, the directors of Pommerelle Company, Inc. (hereafter called the Old Company), concluded that the stated value of its capital stock was too low and that the corporation was paying excess profits taxes in an amount larger than the company's situation required. For the sole purpose of attempting to correct this situation and on the advice of the corporation's tax counsel, the following plan was devised and effectuated...

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