Clifford W. Michel et al., Trustees U/d of Jules S. Bache for Hazel B. Beckman, and Gilbert Miller et al., Trustees U/d of Jules S. Bache for Kathryn B. Miller, Petitioners-appellants, v. Commissioner of Internal Revenue, Respondent, 239 F.2d 385 (2d Cir. 1956)

On petition to review a decision of the Tax Court of the United States, Stephen E. Rice, Judge.

The trustees under deeds of trust created by Jules S. Bache for the benefit of Hazel B. Beckman and Kathryn B. Miller respectively petition for review of a decision, 24 T.C. 960, finding deficiencies in their 1948 income taxes, based on increases assessed in the amounts of capital gains received on shares of trust stock sold, upon rejection of their contentions that the cost bases of such shares must be increased by a proportionate part of the amounts paid in compromise of the Commissioner's claims for estate taxes on the trust corpora as gifts made in contemplation of death by the donor.

Wilbur H. Friedman (of Proskauer, Rose, Goetz & Mendelsohn), New York City (Martin D. Jacobs, Allan F. Ayers, Jr., and Peter J. Repetti (of Hodges, Reavis, McGrath, Pantaleoni & Downey), New York City, on the brief, for Hazel B. Beckman Trust; Charles Looker and Gerald Silbert (of Proskauer, Rose, Goetz & Mendelsohn), New York City, on the brief, for Kathryn B. Miller Trust), for petitioners-appellants.

Melva M. Graney, Atty., Dept. of Justice, Washington, D. C. (Charles K. Rice, Asst. Atty. Gen., and Lee A. Jackson and Hilbert P. Zarky, Attys., Dept. of Justice, Washington, D. C., on the brief), for respondent.

Before CLARK, Chief Judge, and FRANK and LUMBARD, Circuit Judges.

PER CURIAM.