THATCHER ROY LE D. THATCHER ROY PAUL FIRST SECURITY THATCHER BANK BUILDING OGDEN,UTAH Counsel ie ba hing ton, of De ATTENTION: the of Bureau of Internal Revenue Ce A. T. Clark, Civil Dear Mr. 1939 14, March copy YOUNG LAWYERS B. YOUNG Chief & Esquire Division Clarks Ret The mail the decision this Browning morning of Arms Company Thomas 2 Eheehen, Excise Taxes the brought United us the States V. Collector PRENTICE-HALL Circuit Court Appeals Second Circuit rendered March 6 in the case in paragreph 5.256 of it ~ gr Smith v¥. Higgins, RENTICE-HALL Federal Tax ere the Rist there of 4{n er ny ae py by sustained as 1932 the of of the 1980 allowed of result a securities. made by him to Es baonnbetion, the stock was practically all owned by him, end the few shares were controlled by him. ting in the Browning case "purchase price which the paid ae a eredit on his obligation by which the Arms Company J. M. & for the recall, Will you That, , BM. & Browning Company arms which it bought. was the naid the means Browning The ease is elso interesting because ae ¢iifferentiates Gregory v. Helvering, 292 U. 8. 465, saying, ‘Though the case just mentioned is relied on by the government it is not of help not within to it for it hed to do with a pretended organization the involves know of scope of @ that Peal ie case rpm any The etatute. sale is to an Cirreuilt es Court in that decision we differs buyer." aetuel valuable ease present being the latest of Appeals. You re truly, THATCHER Roy & YOUNG D. Thatcher it