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R. J. REYNOLDS TOBACCO COMPANY v. UNITED STATES

No. 254-54.

149 F.Supp. 889 (1957)

R. J. REYNOLDS TOBACCO COMPANY v. The UNITED STATES.

United States Court of Claims.

April 3, 1957.

Attorney(s) appearing for the Case

Marion N. Fisher, New York City, for plaintiff. Leon L. Rice, Jr., W. P. Sandridge, Winston-Salem, N. C., Philip C. Potter, Jr., Davis, Polk, Wardwell, Sunderland & Kiendl, New York City, and Womble, Carlyle, Sandridge & Rice, Winston-Salem, N. C., were on the briefs.

Homer R. Miller, Washington, D. C., with whom was Asst. Atty. Gen. Charles K. Rice, for defendant. Andrew D. Sharpe and Thomas Hogan, Washington, D. C., were on the brief.

Before JONES, Chief Judge, and LITTLETON, WHITAKER, MADDEN and LARAMORE, Judges.

LARAMORE, Judge.

This action is brought to recover income and excess profits taxes allegedly improperly assessed against plaintiff for the years 1940 to 1948, inclusive, in the amount of $8,352,851.83, plus interest.1

The issue in the case is whether certain payments made by the plaintiff to its employees pursuant to a company bylaw passed in 1912 and paid proportionate to the employees' stockholdings in the company constitute...

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