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COMMISSIONER OF INTERNAL REV. v. SPAULDING BAKERIES

No. 93, Docket 24725.

252 F.2d 693 (1958)

COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. SPAULDING BAKERIES INCORPORATED, Respondent.

United States Court of Appeals Second Circuit.

Decided February 26, 1958.

Attorney(s) appearing for the Case

Charles K. Rice, Asst. Atty. Gen., Lee A. Jackson, Robert N. Anderson, David O. Walter, Attorneys, Department of Justice, Washington, D. C., for petitioner.

Norris Darrell, Richard G. Powell, M. Bernard Aidinoff, New York City (Sullivan & Cromwell, New York City, of counsel), for respondent.

Before MEDINA and MOORE, Circuit Judges, and GALSTON, District Judge.

GALSTON, District Judge.

The question involved is substantially one of law, and of law only, for the facts have been stipulated. Basically, the question presented involves an interpretation of Section 112(b) (6) of the Internal Revenue Code of 1939, 26 U.S.C.A. § 112(b) (6). The problem presented hinges upon an investment which the respondent made in the purchase over a period of years of shares of the capital stock of Hazleton Bakeries, Inc.

Hazleton...

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