Wagner

This is an appeal from a decision of the United States Board of Tax Appeals affirming the action of the Commissioner of Internal Revenue in determining that there is a deficiency of $13,380.44 in the decedent’s income tax for 1930.

A summary of the board’s findings of fact follows: In 1911 the decedent and Ernest J. Sehweitzer were the owners of the stock of the Wagner-Woodruff Corporation, which was engaged in the business of manufacturing and selling electric lighting fixtures in Los Angeles, Cal.

In 1912 Sehweitzer and the decedent, working in the factory of the Wagner-Wood-ruff Corporation, invented an indirect electric lighting fixture that they called the “Briterlite.” This was a lamp mounted in' a globe of translucent material and having above it a downwardly reflecting reflector of curved contour so as to diffuse the light downward. These lights were being manufactured and sold to a very limited extent in 1912 and 1913. In January and February, 1913, the decedent and Sehweitzer had obtained a contract for the production and installation of a number of Briterlito fixtures.

The two inventors in the latter part of 1912 consulted a patent attorney, who caused an examination…