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SPRECKLES-ROSENKRANS INV. CO. v. LEWIS

No. 10739.

146 F.2d 982 (1945)

SPRECKLES-ROSEKRANS INV. CO. v. LEWIS, Collector of Internal Revenue.

Circuit Court of Appeals, Ninth Circuit.

January 24, 1945.

Attorney(s) appearing for the Case

Walter Slack, of San Francisco, Cal., and T. M. Wilkins, of Washington, D. C., for appellant.

Samuel O. Clark, Jr., Asst. Atty. Gen., and Sewall Key, Robert N. Anderson, George J. Laikin, and Helen Goodner, Sp. Assts. to the Atty. Gen., and Frank J. Hennessy, U. S. Atty., and Esther B. Phillips, Asst. U. S. Atty., both of San Francisco, Cal., for appellee.

Before DENMAN, HEALY, and BONE, Circuit Judges.

HEALY, Circuit Judge.

In 1917 the Chase National Bank caused Chase Securities Corporation to be organized for the purpose of dealing in securities, that being a type of business in which the Bank itself could not legally engage. The Bank provided capital for the affiliate by declaring a special dividend in its favor in return for the issuance by the affiliate of all its capital stock pro rata to the stockholders of the Bank...

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