upr000278 251

3 capital under § 718 (a,) of the Code either as a “contribu­tion to capital” or as “accumulated earnings and profits.” 3 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 Teiinessee. From 1914 to 1939 petitioner received in seventeen transactions an aggregate of $885,559.45 in cash and $85,471.5(5 in buildings4 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 den years,” and to meet a minimum payroll, in consideration of which the community group agreed to transfer land and cash “Ao 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 718 (a) provides . . .The' equity investe dr eclaepviatnatll y:for any day of any taxable year . . . shall be the sum of the following Amounts, reduced as pr;•o“v(i•!d) ed. •i n•. sMuobnseecyti porne v(ibo)u —sl y paid1 i, n for stoc'k , or as paid-in surplVu s,/ or “a(s2 )a .c o. nt. rPirbuotpieornt yt o (coatphietra l;t han mo;ney) previously paid in (re­gardless of the time paid in) for stock, or. as paid-in surplus, or as a contribution to capital. . . i; “(4) . , . The accumulated earnings and profits as of the beginning of such taxable year ... .” ] wa>sT hnoet vianlculeu doefd tihn/ep eltaintdio nuepr'osn bwohoikcsh a ntdhe isb uuinldiimnpgosr twaenrte floorc attheids proceeding. BROWN SHOE CO. v. COMMISSIONER.