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COMMISSIONER OF INTERNAL REV. v. McKAY PRODUCTS CORP.

Nos. 9804, 9808.

178 F.2d 639 (1949)

COMMISSIONER OF INTERNAL REVENUE v. McKAY PRODUCTS CORPORATION. McKAY PRODUCTS CORPORATION v. COMMISSIONER OF INTERNAL REVENUE.

United States Court of Appeals Third Circuit.

Decided December 16, 1949.

Attorney(s) appearing for the Case

William F. Malone, Baltimore, Md., John W. Cable, 3d, Baltimore, Md. (Karl F. Steinmann, Baltimore, Md., on the brief), for taxpayer.

Harry Marselli, Washington, D. C. (Theron Lamar Caudle, Asst. Atty. Gen. and Ellis N. Slack, Sp. Asst. Atty Gen., on the brief), for Commissioner.

Before MARIS and GOODRICH, Circuit Judges, and CLARY, District Judge.

GOODRICH, Circuit Judge.

The controversies between the taxpayer and the Commissioner in these two appeals present three questions for our determination. Reduced to their simplest statement, the facts out of which the controversies arise are these:

People in the community of Sayre, Pennsylvania, sought during the depression to bring industries to town for the obvious purpose of increasing local payrolls and thus to promote general prosperity. To this end, a...

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