Redman v. Commissioner of Internal Revenue

MAHONEY, Circuit Judge.

In September of 1936 the taxpayer was asked to give aid to the Portland Evening News, a struggling newspaper. He became President of the Maine Publishing Corporation, the publisher of the paper, and during the fifteen months following Sep*320tember, 1936, he and his wife invested approximately $35,000 in an effort to keep the paper alive, $13,000 or $16,000 of which was received by the corporation on account of stock, the balance being represented by promissory notes of the corporation. The debenture bondholders invested about $25,-000 over the same period. The taxpayer and…