from appellees' conduct only after 1957, it is necessary to examine the circumstances from the beginning.
Danaho, a corporation organized by its president, Hovey, bought a small refinery at Pettus in 1945 for $40,000 cash and a note for $100,000. It was "one step above junk". In 1946 a thermal craker was added, and in 1955 a platformer was installed. These and other improvements cost over $1,000,000 for which the plant was from time to time mortgaged. It continued to be encumbered until a 1957 mortgage securing a $420,000 indebtedness was released in 1962. In 1945 the refinery had a daily crude oil refining capacity of 1000 barrels "throughput". The capacity was increased after the first four or five years until in 1954 it reached 5000 barrels per day,but during this period it was not "running to its then capacity from year to year", except for the earlier years. Never thereafter did the refinery operate at capacity. The maximum throughput "in all those years was between 3500 and 4000 barrels." In 1951 it operated at 60% capacity. It was "down to about 40% in 1954." Notwithstanding, the following years Danaho increased the plant capacity to 10,000-12,000 barrels per day based on the expectation of completing a pipeline to San Antonio. The latter project had to be abandoned in 1956 because of Danaho's inability to market $1,500,000 securities, and there was no need for the expensive capital improvements by which the capacity had been enlarged. The securities marketing expense to Danaho was $300,000, and the preparations for