Henry H. Bonsall, Jr., and Martha G. Bonsall, C. Jordan Vail and Nancy B. Vail v. Commissioner of Internal Revenue

J. JOSEPH SMITH, Circuit Judge.

Albany Linoleum & Carpet Company was organized in 1924 and since that time has engaged in the wholesale distribution of various floor covering materials. Its largest supplier has been Armstrong Cork Company. Henry and Martha Bonsall, husband and wife, have at all pertinent dates been the controlling shareholders and principal officers of Albany Linoleum. C. Jordan Vail and his wife Nancy were minority shareholders, and he was an employee of the company. Albany Linoleum acquired its principal place of business at*64 Northern Boulevard in Albany, New York, in 1945,…