Commissioner of Internal Revenue v. The Pittston Company

MOORE, Circuit Judge.

I dissent. The assumption of the majority that mere “naked contract rights” form the basis of this transaction is, in my opinion, contrary to the undisputed facts and the law applicable thereto.

The only question involved upon this appeal is whether the sum of $500,000 paid by Russell to Pittston on October 14, 1949 for which Russell “acquired all *349of our [Pittston’s] right and interest in and to the agreement dated January 25, 1944 between us,” should be taxed as a long-term capital gain or as ordinary income. The answer to this question depends upon a precise analysis of…