McLaughlin

Erom a judgment rendered by the District Court in favor of the Pacific Lumber Company, plaintiff below, for recovery of income taxes paid to the collector of internal revenue, the latter appeals. The judgment was for $143,122.23, representing income taxes paid by the appellant for the year 1923. Interest on that sum at the rate of 6 per cent, to January 13, 1932, totaling $64,977.53, and interest on the two foregoing sums from January 13, 19*32, until paid also at 6 per cent., were allowed by the lower court. The date of January 13,1932, was the one on which the judgment of the District Court was rendered. The case was tried before the court, without a jury, on an agreed statement of facts, together with the income tax returns referred to in the stipulation.

The appellee is a Maine corporation, with its principal office in California. During the years 1920,1921, 1922, and 1923, it was affiliated with two subsidiary corporations, the Pacific Lumber Company of Illinois and A. E. Thane & Co. of California. During those years the operations of the three affiliates showed the following: The Thane Company suffered a heavy loss each year; the Illinois Company showed a loss in 1920 and…