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JOHNSON, CARVELL & MURPHY v. RIDDELL

No. 266.

173 F.Supp. 214 (1959)

JOHNSON, CARVELL & MURPHY, a corporation, Plaintiff, v. R. A. RIDDELL, District Director of Internal Revenue, Defendant.

United States District Court S. D. California, Central Division.

March 27, 1959.

Attorney(s) appearing for the Case

Littlejohn, Callister & McNabb, Los Angeles, Cal., for plaintiff.

Laughlin E. Waters, U. S. Atty., Edward R. McHale, Asst. U. S. Atty., Los Angeles, Cal., for defendant.

HARRISON, District Judge.

Plaintiff corporation brings this action against the District Director of Internal Revenue to recover $9,691.34 plus interest which sum it paid as corporate income taxes for the calendar year 1954.

The facts are that plaintiff, being desirous of having its stock closely held only by persons working for the corporation, entered into a written agreement with its shareholders on January 26, 1948 (Exhibit 1) which gave plaintiff corporation...

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