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were his customers, petitioner cites Commissioner v. Stevens, 78
F.2d 713 (2d Cir. 1935). Stevens was the Court of Appeals for
the Second Circuit's affirmance of the Board of Tax Appeals'
opinion in Estate of Hall v. Commissioner, 29 B.T.A. 1255 (1934).
However, the facts in the Stevens and Estate of Hall cases are
clearly distinguishable from the facts of this case. The
partnership found to be a securities dealer in those cases had an
established place of business, held itself out to the general
public as a securities dealer, dealt in the stock of 14
companies, and was the principal dealer in the stock of one such
company, participating in nearly 70 percent of all transactions
in that stock in one of the years in issue. The Commissioner had
challenged the partnership's dealer status because most of its
customers were brokers on the New York Stock Exchange. Finding
that the partnership dealt in the stocks involved "primarily as a
merchant", the Board concluded: "We see no reason why a broker,
in such circumstances, may not properly be regarded as a customer
of the partnership." Estate of Hall v. Commissioner, supra at
1259. The Board also noted that the partnership purchased from
and sold to persons other than brokers. Estate of Hall v.
Commissioner, supra at 1260. The Court of Appeals for the Second
Circuit affirmed, stating: "Another broker may well be considered
a customer." Commissioner v. Stevens, supra at 714.
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