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UNITED STATES v. McNALLY PITTSBURG MANUFACTURING CORP.

No. 7696.

342 F.2d 198 (1965)

UNITED STATES of America, Appellant, v. The McNALLY PITTSBURG MANUFACTURING CORPORATION, a Kansas corporation, and McNally Pittsburg Manufacturing Corporation, a Kansas corporation, successor to the McNally Pittsburg Manufacturing Corporation of Wellston, Ohio, a Delaware corporation, predecessor, Appellees.

United States Court of Appeals Tenth Circuit.

March 1, 1965.

Attorney(s) appearing for the Case

Jerome Fink, Attorney, Department of Justice, Washington, D. C. (Louis F. Oberdorfer, Asst. Atty. Gen., Lee A. Jackson, and Meyer Rothwacks, Attorneys, Department of Justice, Washington, D. C., and Newell A. George, U. S. Atty., of counsel, on the brief), for appellant.

Harry A. Morris, Kansas City, Mo., for appellees.

Before PICKETT, HILL and SETH, Circuit Judges.

SETH, Circuit Judge.

The United States has taken this appeal from judgments entered by the District Court for the District of Kansas on jury verdicts. The judgments require the Government to make a refund to the appellee corporations of taxes assessed pursuant to 26 U.S.C.A. § 531 on earnings asserted to be accumulated beyond reasonable needs of the businesses to avoid income taxes on the shareholders. The principal question presented on this appeal is whether...

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