It may be that after conferences with the Government we can clear up the discrepancy between the total net taxable sales figure used as a basis for the assessment of the tax, amounting to $958,740.93, and the total figure the by obtained at the fact that in some: instances. you questions are- already answered by I appreciate that our determination of may feel ($956,197.84. was which Louis St. audit papers in the file but where we are in doubt, after having examined the same, we feel it best to check with you. This is particularly true in regard to such important matters as the what.constitutes a satisfactory basis of post- including.the sontroversy entire the of settlement, suit period. I am still just a little in doubt as to what you think would constitute a satisfaotory basis. In this connection you will recall that in the settlement offer made to the Department of Justice you used the Browning wholesale basis reduced by the average discount that the wholesale price of your two competitors bore to their jobbers’ price. This obviously was an attempt to put the Browning tax basis in on a parity with the tax basis used by your competitors. the to referring in however, your letter of October 2ist, Albrecht case, you suggested that the taxpayer would be happy to settle on the basis of a price at which the arms would have sold in the usual course of trade to wholesalers. In your letter your Justice was tate to commit made the matter jobbing price should of offer on our a Mr. Zimmerman you stated the basis competitors the fact that to the of jobbers’ comparative the a to taxpayer out having made certain of your at the expense of repetition if Inasmuch however, settlement however, view, In in 23rd, that be solid the last statement you are referring to fair and proper tax basis for Browning the minimum you Would accept for settle- I presume by what would be the sales rather than used October statement the thet to jobbers so for out tax.” ment. of my confirmed “Baxter tax the Department basis of I would hesi- basis with- indicate to settlement of price, wholesale tax necessary to views in the you feel you matter even have already clear. as we just may how find far we it will go in a the entire case, inoluding the post-suit period, you can see the importance of having at this time a definite statement setting forth your views as to the basis of settlement which would be acceptable to you and your You might advise whet your minimum basis would client. be, as well as what you deem to represent a reasonable objective, when negotiating with the Department.