Steinberger

The United States filed its bill of complaint against Robert Steinberger, Irwin Steinberger, and S. F. Berg, praying that certain assets received by them from Steinberger Bros. & Co., a corporation, be 'decreed to constitute a trust fund for the payment of a deficiency of $32,518.12 assessed to the corporation as income tax for the year 1921, and that they be held accountable therefor and ordered to pay the amount of said deficiency. While the suit was pending in the District Court, Berg died, and his executor, Wells Fargo Bank & Union Trust Company, was substituted as a party defendant. From a decree in favor of the United States, all the defendants have appealed.

The facts, as the District Court found them, are as follows:

The corporation was organized on December 31, 1920, and thereafter engaged in the business of manufacturing and importing gloves. Between the date of its organization and July 1, 1921, the corporation secured contracts for the sale in the United States of gloves to be imported by it from Germany. On July 1, 1921, before delivery of the gloves had been made, legal title to the contracts was transferred by the corporation to Adolph Steinberger, as trustee for…