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CATE DITCH COMPANY v. UNITED STATES

Civ. No. 89-60-K.

194 F.Supp. 688 (1961)

CATE DITCH COMPANY, a corporation, Plaintiff, v. UNITED STATES of America, Defendant.

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

April 21, 1961.

Attorney(s) appearing for the Case

Burton & Gauldin, by R. Jackson Gauldin, Whittier, Cal., for plaintiff.

Francis C. Whelan, U. S. Atty., Robert H. Wyshak, Asst. U. S. Atty., Los Angeles, Cal., for defendant.

KUNZEL, District Judge.

This cause was submitted for decision upon written stipulation of facts, which facts are hereinafter set forth.

Cate Ditch Company is a California corporation organized to operate an irrigation ditch company for the benefit of its member stockholders; and from 1930 until 1956 it enjoyed the status of a tax-exempt corporation under I.R.C. § 501(c) (12), 26 U.S.C.A. § 501(c) (12). In 1956, contemplating dissolution, the taxpayer...

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