Bonneville Locks Towing Co., Inc. v. United States of America, Stevenson Towboat Company v. United States of America, C. T. Smith & Co., Inc. v. United States

343 F.2d 790 65-1 USTC P 9330 BONNEVILLE LOCKS TOWING CO., Inc., Appellant, v. UNITED STATES of America, Appellee. STEVENSON TOWBOAT COMPANY, Appellant, v. UNITED STATES of America, Appellee. C. T. SMITH & CO., Inc., Appellant, v. UNITED STATES of America, Appellee. Nos. 19197-19199. United States Court of Appeals Ninth Circuit. March 23, 1965. Dean M. Alexander, Portland, Or., Hutchison & Blair, Vancouver, Wash., for appellants. Wm. N. Goodwin, U.S. Atty., Charles W. Billinghurst, Asst. U.S. Atty., Tacoma, Wash., John B. Jones, Jr., Acting Asst. Atty. Gen., Lee A. Jackson, Harry Baum, Michael Mulroney, Dept. of Justice, Washington, D.C., for appellee. Before BARNES, JERTBERG and MERRILL, Circuit Judges. BARNES, Circuit Judge. 1 This is an action filed by three corporations for refund of income taxes paid pursuant to assessments for income tax deficiencies therefor made by the Commissioner of Internal Revenue, for the years 1955, 1956 and 1957. The deficiencies were based upon the Commissioner's determination that the principal purpose of creating the three corporations was to evade the surtax rate payable if all earnings were to remain in one corporation; thus…