v3179-393

OOBBEGTED

No. 16,702

In the United States Court of Appeals

for the Ninth Circuit

ScHALK Chemical Company, a Corporation; Gerald

1. Farman, Hazel I. Farman, John CarveH

Baker and Patricia Baker, petitioners

Commissioner of Internal Revenue, respondent

On Petition to Review the Decisions of the Tax Court

of the United States

BRIEF FOR THE RESPONDENT

Charles K. Rice,

Assistant Attorney General.

Lee a. Jackson,

Harry Baum,

Arthur I. Gould,

Attorneys,

Department of Justice,

Washington 25, D. C.

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