MEDICAL ARTS HOSPITAL OF DALLAS v. COMMISSIONER OF INTERNAL REVENUE

No. 10837.

141 F.2d 404 (1944)

MEDICAL ARTS HOSPITAL OF DALLAS v. COMMISSIONER OF INTERNAL REVENUE.

Circuit Court of Appeals, Fifth Circuit.

March 7, 1944.


Attorney(s) appearing for the Case

George S. Atkinson, of Dallas, Tex., for petitioner.

Elizabeth B. Davis, Sewall Key, J. Louis Monarch, and Carlton Fox, Sp. Assts. to the Atty. Gen., Samuel O. Clark, Jr., Asst. Atty. Gen., and J. P. Wenchel, Chief Counsel, Bureau of Internal Revenue, and Claude R. Marshall, Sp. Atty., Bureau of Internal Revenue, both of Washington, D. C., for respondent.

Before SIBLEY, McCORD, and WALLER, Circuit Judges.


WALLER, Circuit Judge.

The taxpayer was chartered under the laws of the State of Texas on the 5th day of January, 1938, to operate a sanitarium or hospital which had formerly been operated by the Medical Arts Diagnostic Center, Inc. The hospital occupied the 17th, 18th, and 19th floors of a building in Dallas owned by Cary-Schneider Investment Company, a corporation under the laws of Texas (hereinafter spoken of as "the Investment Company"). The chief stockholder...

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