upr000278 236

3 capital under § 718 (a) of the Code either as a “contribu­tion to capital” or as “accumulated earnings and profits.” Petitioner is a New York corporation which at all times material conducted manufacturing operations in a num­ber of plants located in Illinois, Indiana, Missouri and Tennessee. From 1914 to 1939 petitioner received in seventeen transactions an aggregate of $885,559.45 in cash and $85,471.56 in buildings * from various com­munity groups in twelve towns. Except in one instance, each transfer was pursuant to a written contract between petitioner and the respective community group. The contracts were of three types: The first required peti­tioner to locate, construct and equip, or to enlarge a factory in the community, to operate the factory “con­tinuously so long as it is practicable in the conduct of its business for at least a period of ten years,” and to meet a minimum payroll, in consideration of which the community group agreed to transfer land and cash “to be used for the payment, of suitable factory building or buildings” ; in one instance existing buildings were also transferred and in another instance only buildings 3 Section 71S (a) provides “. . . The equity invest erde lceavpainttally :for any day of any taxable year . . . shall be the sum of the following amounts, reduced as provided in subsection (b)— \ “ (1) . . . Money previously paid in for stock, or as paid-in surplus, or as a1 c: o. nt. riPbruotpieornt yt o (coatphietra lt;han money) previously paid in (re­ag acrodnletsrsi bouft itohne tto icmaep iptaali.d .i n. ) .;for stock, or as paid-in Surplus, or as of “s (u4c)h .t a. xa. bTleh ey eaacrc u.m u. l.ated earnings and profits as of the beginning wa4s Tnhoet vianlculeu doefd tihn e peltaintdi ounepro’sn bwohoikcsh 'atnhde isb uuinlidimnpgosr twaenrte floorc attheids proceeding. BROWN SHOE CO. v. COMMISSIONER.