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MARBLE & SHATTUCK CHAIR CO. v. COM'R OF INTERNAL REVENUE

No. 5529.

39 F.2d 393 (1930)

MARBLE & SHATTUCK CHAIR CO. v. COMMISSIONER OF INTERNAL REVENUE.

Circuit Court of Appeals, Sixth Circuit.

April 8, 1930.

Attorney(s) appearing for the Case

G. P. Bickford and C. M. Horn, both of Cleveland, Ohio (W. B. Stewart and G. P. Bickford, both of Cleveland, Ohio, on the brief), for petitioner.

Helen R. Carloss, of Washington, D. C. (C. M. Charest and Joe S. Franklin, both of Washington, D. C., G. A. Youngquist, Asst. Atty. Gen., and Sewall Key, of Washington, D. C., on the brief), for respondent.

Before DENISON and HICKS, Circuit Judges, and WEST, District Judge.

WEST, District Judge.

During the tax years in question, petitioner was a corporation making and selling chairs; its capital stock being closely held. Up to May 21, 1920, the stock consisted of 500 shares. In February, 1920, 160 shares held by outsiders were purchased and apportioned among the three principal stockholders. Immediately afterwards the four stockholders owning practically all of the stock held meetings at which they considered and discussed their several...

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