Niederkrome v. Commissioner Of Internal Revenue

266 F.2d 238 58-2 USTC P 9944 Fred C. NIEDERKROME, E. Royce, Dora F. Royce, Ezra Royce, B. Royce, Estate of Isabelle H. Royce, Deceased, B. Royce, Executor, Robert T. Jacob, Agnes C. Jacob, Albert L. Schneider and Bertha Schneider, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. No. 15724. United States Court of Appeals Ninth Circuit. Nov. 10, 1958, Certiorari Denied March 23, 1959, See 79 S.Ct. 725. Louis Eisenstein, Washington, D.C., Randall S. Jones, Portland, Or., Eberhard P. Deutsch, New Orleans, La., for petitioner. Charles K. Rice, Asst. Atty. Gen., Helen A. Buckley, Melva M. Graney, Lee A. Jackson, Attys., Dept. of Justice, Washington, D.C., for respondent. Before HEALY, FEE and HAMLEY, Circuit Judges. JAMES ALGER FEE, Circuit Judge. 1 This action for review of the determination of tax deficiencies involves several problems: 2 1. Did the distribution of earnings by a corporation in payment of a note and the simultaneous redemption of 350 shares of stock purchased with the proceeds of the note constitute a distribution equivalent to dividends? 3 2. Did the payment or disbursement of incidental expenses to the company making the loan furnish any evidence of the…