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COMMISSIONER OF INTERNAL REV. v. PRODUCE REPORTER CO.

No. 10771.

207 F.2d 586 (1953)

COMMISSIONER OF INTERNAL REVENUE v. PRODUCE REPORTER CO.

United States Court of Appeals Seventh Circuit.

November 4, 1953.

Attorney(s) appearing for the Case

H. Brian Holland, Asst. Atty. Gen., Joseph F. Goetten, Asst. to Atty. Gen., U. S. Department of Justice, Washington, D. C., Ellis N. Slack, Lee A. Jackson, and Harry Baum, Washington, D. C., Sp. Assts. to Atty. Gen., for petitioner.

William W. McKittrick, Victor L. Lewis, Lawrence Howe, Jr., Charles R. Kaufman, Chicago, Ill., Vedder, Price, Kaufman & Kammholz and Francis H. Uriell, Chicago, Ill., of counsel, for respondent.

Before DUFFY, LINDLEY and SWAIM, Circuit Judges.

DUFFY, Circuit Judge.

This is an appeal from a decision of the Tax Court. 18 T.C. 69. It involves income and excess profit taxes for the years 1944, 1945 and 1946.

Taxpayer is a service corporation for the wholesale fruit and vegetable industry. Since 1930 it shared profits with its employees by means of year-end bonuses. In 1941, at the instance of the company, certain employees organized a non-profit corporation. Trustees...

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