Welch

This action is brought to recover for what is alleged to have been an overassessment of income and profits taxes paid by the plaintiff for the year 1920.

Plaintiff,"prior to the year 1914, was engaged in the development and production of crude petroleum. It was a successor in title to a claim held under a placer mining location, covering forty acres of land in the Keru River district, Cal. The placer location was made in the year 1900. This land came within the effect of a withdrawal order issued by President Taft on September 27, 1909. This order purported to temporarily withdraw from all forms of “location) settlement, selection, filling, entry or disposal” areas designated. The withdrawal order contained the' condition that “all locations or claims existing and valid at this date may proceed to entry in the usual manner after field investigation and examination.” Notwithstanding the order of withdrawal, possession was maintained of the land in question and drilling operations were prosecuted, with the result that in December, 1913, a well was completed, which became a heavy producer of oil. Other wells were thereafter drilled and the output thereby increased.

In March, 1914,…