Findings of Fact 122 C. Cls. upon by the parties hereto and the amount thus agreed upon paid to Ohio. The designated agent for the stockholders was authorized to inspect at any time any drilling and/or producing operations on any of the leases transferred for the purpose of acquiring information deemed necessary or desirable to protect the interests of the stockholders of Weber Oil Company. The contract has been carried out according to its terms. 9. In his income-tax return for the calendar year 1941, the plaintiff reported the sale of his 150 shares of the capital stock of Weber Oil Company as a sale of a capital asset held for more than twenty-four months. The plaintiff reported a net long-term capital gain, 50 percent of which was recognized for tax purposes, of $166,016.67, computed as follows: Cost of Weber Oil stock____ Total Cash payable in 1942, $320.00 per share. Total_ One-eighth oil payment, estimated ultimate expectancy $550.00 per share, discounted for present value thereof to 70 percent, or $385 per share. Total___. Total Less cost-‒‒‒‒ Balance (long-term) - $10,233.33 $70,500.00 48,000.00 $57, 750.00 176, 250.00 10, 233. 33 166, 016. 67 10. In the revenue agent's report covering the plaintiff's 1941 income-tax return, the net selling price of his 150 shares of Weber Oil Company stock was adjusted to $164,670 by reason of the adjustment of the total estimated expectancy of oil payments under the contract with Ohio Oil Company from $550 per share to $410.40 per share. In addition, the present value of the total expectancy was arrived at by discounting it to 75 percent, that is, $307.80 per share. The latter value was adopted by the Bureau of Internal Revenue, and the plaintiff and the other stockholders of Weber Oil Company accepted and acquiesced in the valuation and used it in their subsequent computations of tax liability. The 1 Findings of Fact discounted value of the oil payments was included as part of the proceeds of the sale in determining the plaintiff's longterm gain on the sale of his stock. 11. The plaintiff received the following payments from The Ohio Oil Company pursuant to the provisions of the agreement providing for the payment of oil payments of one-eighth of the gross proceeds of the oil produced, saved and marketed as contained in the second paragraph on page 2 of that agreement: 12. The plaintiff's original income-tax return for the calendar year 1942 showed receipts of $24,768.39, as shown in finding 11, during the year 1942. The plaintiff treated 75 percent of that amount, that is, $18,576.29, as a return of capital and reported 25 percent, that is, $6,192.10, as ordinary income. The plaintiff's amended return for 1942, filed January 26, 1944, treated as long-term capital gain the amount originally reported as ordinary income. The total cost of the oil payments consisted of the portion thereof, $307.80 per share, which had been included in the determination of the plaintiff's long-term capital gain, that is, the total capitalized part of the sale price, in 1941. 13. The plaintiff's income tax return for the calendar year 1943 reported receipts from The Ohio Oil Company, as shown in finding 11, in the amount of $23,354.09, 75 percent, that is, $17,515.57, represented his return of cost, and 25 percent, that is, $5,838.52, was reported as long-term capital gain. 14. In his calendar year 1944 income tax return, the plaintiff reported receipts from The Ohio Oil Company of $15,018.64, as shown in finding 11, $7,953.45 of which was reported as the balance of the plaintiff's unrecovered cost, and $7,065.19 was treated by the plaintiff as long-term capital gain. 15. In his income tax return for the calendar year 1945, the plaintiff reported the entire receipts from The Ohio Oil Company in the amount of $11,706.85, as shown in finding Findings of Fact 122 C. Cls. 11, as long-term capital gain. The plaintiff's entire "cost" had been fully recovered in prior years. 16. In an audit of the plaintiff's income tax returns for the years 1942, 1943, 1944, and 1945, the examining revenue agent in a report dated March 18, 1947, recommended that the plaintiff's receipts from oil payments under the Weber Oil Company contract for the years involved be treated as the plaintiff had reported them, except that the amounts reported should be treated as ordinary income rather than long-term capital gain. The revenue agent's report was approved by the Commissioner of Internal Revenue and additional assessments, substantially all of which were attributable to the agent's adjustments of the Weber Oil payments, were made in May 1947 in the following amounts: The deficiencies were paid on May 13, 1947. 17. The plaintiff, on December 1, 1947, filed with the Collector of Internal Revenue for the District of Michigan claims for refund of 1943, 1944, and 1945 income tax in the respective amounts of $5,195.83, $18,983.21, and $7,980.64. The plaintiff asserted in those claims that the sums received by him during the years 1942, 1943, 1944, and 1945 from The Ohio Oil Company constituted profits from the sale of capital assets and should be taxed as long-term capital gain and not as ordinary income. 18. In an audit of the plaintiff's claim for refund for the year 1943, an examining agent in a report dated October 20, 1948, again determined that the excess of those payments received in 1942 and 1943, over cost, constituted ordinary income and not long-term capital gain. 19. In an audit of the plaintiff's claims for refund for the years 1944 and 1945, the examining agent in a report dated August 2, 1948, likewise determined that the excess of those payments received in 1944 and 1945, over cost, constituted ordinary income and not long-term capital gain. The revenue agent further determined that the plaintiff was entitled to deduct 271⁄2 percent depletion with respect to the pay 1 Findings of Fact ments received in 1945 and also with respect to that portion of the payments received in 1944 after the plaintiff's cost had been fully recovered. That adjustment resulted in overassessments in 1944 income tax in the amount of $1,128.89 and in 1945 income tax in the amount of $2,994.02. 20. On November 16, 1948, a refund for the year 1944 was allowed to the plaintiff in the amount of $1,128.89, plus overpaid interest of $146.49, together with interest on the total refund of $124.10. On the same date, a refund for 1945 was allowed in the amount of $4,529.95, plus overpaid interest of $316.03, and interest on the total overpayment of $545. The refund for 1945 included the amount of $1,535.93 overpaid for 1944 and held for credit to the plaintiff's 1945 tax liability but not claimed as a credit by the plaintiff on his 1945 return. Other than that item, the overassessments and refunds allowed were due entirely to the allowance of the claimed depletion deductions from the plaintiff's income under the Weber Oil Company contract. Guardian Depositors Corporation Issue 21. During the years 1927 to 1930, the plaintiff acquired through purchases and mergers 1,020 shares of the capital stock of Guardian Detroit Union Group, Inc., a Michigan corporation (hereinafter referred to as the "Guardian Group") at a total cost of $102,832.46. Between December 15, 1930, and January 5, 1932, the plaintiff purchased for cash an additional 1,000 shares for $43,113.26. Thus the plaintiff's aggregate cost of his 2,020 shares of Guardian Group stock was $145,945.72. 22. The Guardian Group was a holding corporation, the assets of which consisted of the stocks of national and state banks, and trust companies. The total par value of the capital stock of the Guardian Group equaled the total par value of the capital stock of its constituent companies. 23. The Guardian Group owned all of the capital stock, except directors' qualifying shares, of the following national banks, all located in Michigan: Guardian National Bank of Commerce of Detroit. Union & Peoples National Bank, Jackson. Findings of Fact Capital National Bank, Lansing. 122 C. Cls. City National Bank & Trust Company, Niles. These national banks were closed on February 11, 1933, pursuant to a proclamation by the Governor of Michigan declaring a state-wide "Bank Holiday." Conservators were immediately appointed by the United States Comptroller of the Currency (hereinafter sometimes referred to as "Comptroller of the Currency"), and a receiver for each bank was appointed shortly thereafter. A receiver for the Guardian Group itself was also appointed at approximately the same time. 24. In May 1933 the Comptroller of the Currency levied assessments upon the stockholders of these six national banks for their statutory liability as stockholders of a national bank, The assessment was made as to each bank in the amount of its capital stock. The Comptroller made demand upon each of the stockholders for the par value of his capital stock in each bank owned by him at the time of the failure of the banks. The total assessment with respect to the Guardian National Bank of Commerce (hereinafter referred to as "Guardian Bank") was $10,000,000, later settled for $4,000,000 as hereinafter shown. 25. The receivers of these six national banks contended that the holders of the shares of stock in Guardian Group were in law and fact the real stockholders of the national banks and hence made demand for these assessments against the stockholders of Guardian Group. These assessments were as follows with respect to each share of Guardian Group stock owned at the time of the bank failures: Guardian National Bank of Commerce_ Grand Rapids National Bank....... Union & Peoples National Bank_. Capital National Bank_____ City National Bank & Trust Company. National Bank of Ionia.. Total____. $6.4362 .6353 .4352 .3769 .09196 .09067 8.06623 26. The plaintiff, as one of the stockholders of Guardian Group, made the following payments in 1933 pursuant to |