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MURPHY LOGGING CO. v. UNITED STATES

No. 20281.

378 F.2d 222 (1967)

MURPHY LOGGING CO., successor by merger to Murphy Timber Co., Harry C. Murphy and Dorothy Shea Murphy, Edward J. Murphy and Virginia C. Murphy, Peter C. Murphy and Dorothy Z. Murphy, Appellants, v. UNITED STATES of America, Appellee.

United States Court of Appeals Ninth Circuit.

May 15, 1967.

Attorney(s) appearing for the Case

Charles P. Duffy, Joyle C. Dahl, Duffy, Stout & Georgeson, Portland, Or., for appellants.

Richard M. Roberts, Acting Asst. Atty. Gen., Lee A. Jackson, David O. Walter, Richard J. Heiman, Gilbert Andrews, Attys., Tax Div., Dept. of Justice, Washington, D. C., Sidney I. Lezak, U. S. Atty., Portland, Or., for appellee.

Before CHAMBERS, POPE and HAMLEY, Circuit Judges.

CHAMBERS, Circuit Judge:

Harry, Edward and Peter Murphy know the logging business pretty well. But in their apparent quest for federal income tax savings, they have collided with the internal revenue service.

The Brothers Murphy have operated as loggers in the timber lands of Oregon for some time. Today considerable equipment is usually required in that sort of business.

Before the tax years in controversy...

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