Sarther Grocery Co. v. Commissioner of Internal Revenue

ALSCHÜLER, Circuit Judge.

Petitioner, an Illinois corporation, under its prior name of Great American Stores Company, owned and conducted a chain of grocery stores in the vicinity of Chicago. It owned also all the capital stock of the Sterling Baking Company, an Illinois corporation conducting a bakery. Of petitioners capital stock of 2,500 shares, John M. Sarther owned 2,473 shares, E. A. Sarther 10, Ramsperger 16, and Wetzell 1.

A Cter negotiations with representatives of the National Tea Company, a corporation in similar business, petitioner and the tea company, under date of December 30,…