5. The facts upon which the taxpayer relies as the basis of its appeal are as follows: (Here set forth a brief statement of the facts-but not the evidence -in orderly and logical sequence, so as to enable. the commissioner to admit or deny each allegation.) 6. The taxpayer, in support of its appeal, relies upon the following propositions of law: (Here state briefly each question of law in dispute, without argument or citation.) Wherefore the taxpayer respectfully prays that this board may hear and determine its appeal. Counsel for Taxpayer. (Post Office Address). -, being duly sworn, says that he is the president of the John Doe Company, above named, and as such is duly authorized to verify the foregoing petition; that he has read the said petition, or had the same read to him, and is familiar with the statements therein contained, and that the facts therein stated are true, except such facts as are stated to be upon information and belief, and those facts he believes to be true. before Application is hereby made for the issuance of a subpoena for the attendance (the United States Board of Tax Appeals, or the name and official title of the person authorized to take depositions) at of the following persons whose oral testimony is desired on behalf of (taxpayer or the United States) in the matter of the tax liability of the above-named taxpayer now pending on appeal: You are hereby commanded under penalty of law to be and appear in your proper person before the (United States Board of Tax Appeals, or the name and official title of the person authorized to take depositions) at on the day of 192---, at o'clock m., then and there to testify on behalf of (taxpayer or the United States) in the matter of the tax liability of now pending before this board. You are required to bring with you the following, to wit: By order of the United States Board of Tax Appeals, this 192-. [Seal.] (See Rule No. 40.) State of SS. Proof of Service. day of (Member). being first and duly sworn, says: I am a citizen of the United States of America, over the age of twenty-one years, and not a party to or in any way interested in the appeal in which this subpoena was issued. That on the day of 192, I served the annexed subpoena. on the following witnesses named therein at the places set opposite their respective names, by delivering to and leaving with each of them personally a copy of said subpoena and at the same time exhibiting to each of them this original. (For witnesses subpoenaed on behalf of taxpayer.) That at the time of such service I tendered to each of said witnesses the sum of $, the same being the fees and mileage provided by section 900 (i) of the Revenue Act of 1924. Subscribed and sworn to before me this day of 192-. 636 On reading and filing the application of (taxpayer or commissioner) to take the testimony by deposition of (names of witnesses) residing at to be material witnesses in this cause, at (room number, street place) on the day of appearing therefrom that 192-, at o'clock (official title), of —, alleged number, and m., and it (address) is a person authorized to administer oaths under the Revenue Act of 1924, it is by the board, this day of -, 192—, ordered, that the depositions of the said witnesses above named be taken at (room number, street number, and place), commencing on the of -m. And it is further ordered, that the said depositions be taken before (official title), who is hereby designated by the board for a that purpose. The said depositions shall be taken and the same returned to this board in accordance with the rules of the board. the person named in the foregoing order to take depositions, here under the said order (and in the presence of o'clock, the counsel of a witness produced on behalf of the (taxpayer or United States). a witness produced on behalf of the (taxpayer or United States). a witness produced on behalf of the (taxpayer or United States). That said witness were examined under oath at such times and places as conditions of adjournment required, and that the testimony of said witness(or their answers to the interrogatories filed) was taken stenographically and reduced to typewriting by me or under my direction. 2. I further certify that after the said testimony of said witness-was reduced to writing the transcript of the testimony was read and signed by said witness in my presence, and that (each of them or he) acknowledged before me that said testimony was in all respects truly and correctly transcribed. 3. I further certify that, after the signing of the deposition in my presence, no alterations or changes were made therein. (Signature of Person Taking Deposition.) (Official Title). [Seal.] (Note. The order and return should be attached to and bound with the transcript preceding the first page thereof. It should then be inclosed in a sealed envelope and addressed to United States Board of Tax Appeals, Earl Building, Washington, D. C.) CHAPTER 58 WAR FINANCE CORPORATION 1. Origin and Mission The War Finance Corporation was created by the Act of April 5, 1918.1 Its original purpose was to give financial support to industries whose operations were "necessary or contributory to the prosecution of the war" and to banking institutions that aided in financing such industries. It was also authorized to make advances to savings banks and building loan associations, to buy and sell obligations of the United States government, and to issue bonds. Under the Act of February 20, 1924, the corporation ceased to receive applications for new loans on November 30, 1924, and the making of new loans was discontinued on December 31, 1925. The corporation still has authority, however, to renew or extend outstanding loans within the limits prescribed by the act, as well as to incur expenditures incident to the orderly liquidation of its assets. 2. History The first meeting of the board of directors was held on May 17, 1918, and the corporation, in accordance with the provisions of section 14 of the act of 1918,1 was authorized by the President to commence business on May 20, 1918. It was in existence only six months before the Armistice was signed, but within that short period it handled a large volume of business. When hostilities ceased, its operations were contracted automatically, but in the spring of 1919 it was called upon to undertake the burden of financing the railroads, then under federal control, in view of the fact that no funds had been provided by the Congress for the maintenance of their operations. By, amendment approved March 3, 1919,3 the corporation was authorized to make advances, to the extent of $1,000,000,000, to American exporters and to American banking institutions which financed American exports. This authority was exercised until May 10, 1920, when the corporation's activities were suspended at the request of the Secretary of the Treasury. In January, 1921, the Congress passed a joint resolution directing the corporation to resume operations "with the view of assisting in the financing of the exportation of agricultural and other products to foreign countries," and the powers of the corporation were greatly broadened by the amendment known as the Agricultural Credits Act of August 24, 1921. The latter act gave the corporation authority to make advances for agricultural purposes to banking and financing institutions, including livestock loan companies and co-operative mar 140 Stat. 506, amended November 21, 1918 (40 Stat. 1045). 243 Stat. 14. 3 March 3, 1919 (41 Stat. 1309). 442 Stat. 181. keting associations, and provided that the aggregate advances remaining unpaid at any one time, for any purpose, should not exceed $1,000,000,000. The Act of April 5, 1918,1 required the corporation to cease active operations at the expiration of six months after the termination of the war, the date of such termination to be fixed by proclamation of the President. The amendment of March 3, 1919, however, authorized the corporation to make advances for export purposes until the expiration of one year after the termination of the war, as fixed by proclamation of the President, while the Act of August 24, 1921, limited to June 30, 1922, the period during which advances could be made. This period was extended to June 30, 1923, by the Act of June 10, 1922; 5 to March 31, 1924, by the Agricultural Credits Act of 1923; and to December 31, 1924, by the Act of February 20, 1924.2 Altogether the corporation, since its creation, has made advances totaling $689,691,000-$306,756,000 under its war powers, $85,001,000 for export purposes, and $297,934,000 for agricultural and livestock purposes. It is impossible to state at this time just what balance ultimately will be returned to the Treasury, but there is every reason to believe that, when the remaining assets of the corporation—that is, its outstanding loans-have been liquidated, and after deducting operating expenses and such losses as may be sustained, the government will receive, in addition to the original capital of $500,000,000, a return approximating the cost to the Treasury of the money used in the operations of the corporation. 3. Organization The organic act1 provided that the management of the corporation should be vested in a board of directors, consisting of the Secretary of the Treasury, as chairman of the board, and four other persons, to be appointed by the President of the United States, by and with the advice and consent of the Senate. The Secretary of Agriculture was added to the corporation directorate by the Agricultural Credits Act of August 24, 1921.4 Therefore the present organization is as follows: I. The Washington Administration, located in the Treasury Building, consists of: (a) The Secretary of the Treasury, Chairman. (b) The Secretary of Agriculture. (c) Managing Director, and three other Directors. (e) General Counsel. (f) Secretary. (g) Treasurer. 140 Stat. 506, amended November 21, 1918 (40 Stat. 1045). 2 43 Stat. 14. 3 March 3, 1919 (41 Stat. 1309). 442 Stat. 181. 5 42 Stat. 634. 6 Agricultural Credits Act of March 4, 1923 (42 Stat. 1454). |