MARYLAND COAL AND COKE CO. v. McGINNES

No. 15072.

350 F.2d 293 (1965)

MARYLAND COAL AND COKE COMPANY, Appellant, v. Edgar A. McGINNES, District Director of Internal Revenue.

United States Court of Appeals Third Circuit.

Decided August 3, 1965.


Attorney(s) appearing for the Case

S. Gordon Elkins, Stradley, Ronon, Stevens & Young, Philadelphia, Pa. (David P. Brown, Jr., Philadelphia, Pa., on the brief), for appellant.

James F. Flug, Atty., Dept. of Justice, Tax Div., Washington, D. C. (Louis F. Oberdorfer, Asst. Atty. Gen., Lee A. Jackson, David O. Walter, Attys., Dept. of Justice, Washington, D. C., Drew J. T. O'Keefe, U. S. Atty., Sullivan Cistone, Asst. U. S. Atty., on the brief), for appellee.

Before HASTIE and FREEDMAN, Circuit Judges, and WEBER, District Judge.


PER CURIAM.

The terms of a contract with a corporate mine owner gave the taxpayer corporation as "sales agent" the exclusive right to sell the entire output of a certain mine and to receive as compensation a commission of 15 cents per net ton. The agreement ran "for the life of the mine".1

Desiring to acquire the mine as a source of coal for its own use, Bethlehem Steel Corporation negotiated to purchase all of the stock of the...

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