UNITED STATES v. FORT WORTH CLUB OF FORT WORTH, TEXAS

No. 21090.

345 F.2d 52 (1965)

UNITED STATES of America, Appellant, v. FORT WORTH CLUB OF FORT WORTH, TEXAS, Appellee.

United States Court of Appeals Fifth Circuit.

April 15, 1965.


Attorney(s) appearing for the Case

Gilbert E. Andrews, Jr., Atty., Dept. of Justice, Louis F. Oberdorfer, Asst. Atty. Gen., Lee A. Jackson, Atty., Dept. of Justice, Washington, D. C., H. Barefoot Sanders, U. S. Atty., T. Gary Cole, Jr., Asst. U. S. Atty., Dallas, Tex., John B. Jones, Jr., Acting Atty. Gen., Dept. of Justice, Harry Baum, Timothy B. Dyk, Attys., Dept. of Justice, Washington, D. C., for appellant.

Harry C. Weeks, Fort Worth, Tex., Weeks, Bird, Cannon & Appleman, Fort Worth, Tex., of counsel, for appellee.

Before BROWN and WISDOM, Circuit Judges, and ESTES, District Judge.


WISDOM, Circuit Judge.

We face a narrow issue: was the taxpayer, the Forth Worth Club, during its fiscal year ending April 30, 1960, "organized and operated exclusively for pleasure, recreation and other non-profitable purposes", within the meaning of section 501(c) (7) of the Internal Revenue Code of 1954? A strict reading of the statute requires us to hold that the club was not so organized and operated; through a wholly owned subsidiary, the club was in the business...

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