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WORKMEN'S MUTUAL FIRE INSURANCE SOCIETY v. A'HEARN

No. 172, Docket 25825.

286 F.2d 718 (1961)

WORKMEN'S MUTUAL FIRE INSURANCE SOCIETY, INC., Plaintiff-Appellee, v. Harold B. A'HEARN, United States District Director of Internal Revenue, Defendant-Appellant.

United States Court of Appeals Second Circuit.

Decided February 6, 1961.

Attorney(s) appearing for the Case

James McKinley Rose, Jr., Asst. U. S. Atty., So. District of New York, New York City (S. Hazard Gillespie, Jr., U. S. Atty., So. District of New York, New York City, on the brief), for defendant-appellant.

Seymour M. Waldman, Waldman & Waldman, New York City (Louis Waldman, New York City, of counsel), for plaintiff-appellee.

Before MEDINA, FRIENDLY and SMITH, Circuit Judges.

SMITH, Circuit Judge.

The taxpayer is a mutual fire insurance company incorporated under the laws of New York and doing business on a nationwide scale. During the 1920's Workmen's had quite a substantial portion of its funds invested in first mortgages on real estate. During the depression, after repeated defaults and as a last resort to protect its prior investments, the taxpayer foreclosed, or accepted deeds in lieu of foreclosure, on some seventeen parcels of improved...

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