Walter G, Moyle, Washington, Page #4 that it It has Dv. Esquire C,. | is acting kept as a detailed agent, but record this of July point all has not 19, been sales and its purposes, has 1940 raised, remitted once each month for all sales made by it during the preceding month, & short time after the 1932 transaction it was found that the Arms company needed additional capital, whereupon the parent company contributed $100,000.00 to it as a contribution to surplus. Apparently that has now by Bureau taken the parent, result that the been and the the Arms the seller, if essarily follow court in income clients that it be for the agreement company that that must sale are be the to be treated as under Section 619, recent decisions of tax from The Arms ignored the position company to with the importer and position should be sustained it would necall sales were taxable and the Commissioner matters corporations Smith 64 L, Ed, that agency cannot fix a@ basis wrong uniess under affiliated adequate is must all business I1 think they are clearly the United States Supreme transactions be disregarded. Advance Opinions 321), (See between Higgins vs. While we are not disposed to recommend that our give up the fight for the refund, unless you conclude is desirable to do so, we have been advised that it would willing to settle the Bureau will fix @ effective date of the jebbing prices. What the entire matter, the suit and the basis basis for all ef the arms sold since the act at the average of the Remington-Savage that is appears in the schedule in No. 6, if There 1s another matter which you ought to know, though we are al] anxious that it should not become public. of course, you may ciscuss the matter with the Bureau. Brownings are now about to conclude negotiations with Remington for a contract under which the latter will manufacture the Browning shotgun for sale in the United States. The initial price to Brownings will probably be about 928.00 an arm and will fluctuate from time to time &és Remington's net price to jobbers varies. We will be able in a short pay time excise believe will it give you the but exact it will be if this contract is will be, Remington itself if advise to taxes, pay the there amount close the excise taxes. is further information Yours truly, any which Remington amount we us, & YOUNG Roy D. Thatcher you want will mentioned, made, and there is every reason will sell to Browning Arms and THATCHER RDTsmr to on please to .~