AMERICAN WELL & PROSP. CO. v. COMMISSIONER OF INT. REV.

No. 11588.

232 F.2d 934 (1956)

AMERICAN WELL & PROSPECTING COMPANY, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.

United States Court of Appeals Third Circuit.

Decided March 22, 1956.

Rehearing Denied April 18, 1956.


Attorney(s) appearing for the Case

George G. Tyler, New York City (Cravath, Swaine & Moore, Hoyt A. Moore, Albert Rosenblum, New York City, on the brief), for petitioner.

Harry Marselli, Washington, D. C. (H. Brian Holland, Asst. Atty. Gen., Ellis N. Slack, Lee A. Jackson, L. W. Post, Sp. Assts. to the Atty. Gen., on the brief), for respondent.

Before BIGGS, Chief Judge, and MARIS and GOODRICH, Circuit Judges.


BIGGS, Chief Judge.

The taxpayer, American Well and Prospecting Company, is a Texas corporation organized in 1931. It was engaged in manufacturing and selling oil well rotary drilling equipment and accessories and in the making of armaments for the United States for a number of years prior to 1946. Bethlehem Steel Corporation acquired all of the outstanding capital stock of the taxpayer in 1944 and still holds it.

On December 19, 1945, the taxpayer entered...

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