William O. Douglas

“ It is argued that if the committee's acquisition of the properties is to be treated as a purchase rather than a 'reorganization', the cost to the committee should be measured by the amount of the cash advanced by the committee plus the face value of the deposited bonds. There is no foundation for that contention. The basis of assets bid in by a mortgage creditor on foreclosure is to be determined by the fair market value of the property. ”

“ See Art. 193, Treasury Regulations 77; Helvering v. New President Corp., 8 Cir., 122 F.2d 92, 96, 97. Although the Commissioner used the bid price in ascertaining the basis, the Board found that the market value of the assets did not exceed that amount. Respondent therefore suggests that a remand to the Board to ascertain the fair market value is not necessary. ”