United States v. Pittsburgh & W.V. Ry. Co. v. United States
271 U.S. 310 (1926)

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U.S. Supreme Court

United States v. Pittsburgh & W.V. Ry. Co. v. United States, 271 U.S. 310 (1926)

United States v. Pittsburgh & West Virginia

Railway Company v. United States

Nos. 864, 865

Argued March 11, 1926

Decided May 24, 1926

271 U.S. 310

Syllabus

1. Under § 1 of the Federal Control Act, and § 6 of the standard form of contracts made pursuant thereto between the Director General of railways and railroads taken over by the government, whereby the Director General was either to pay out of the revenues derived from railway operations "during the period of federal control," or save the company harmless from, all taxes lawfully assessed under federal or other governmental authority "for any part of said period," except "war taxes" assessed against the company under the Revenue Act of 1917 or any Act in addition thereto or amendment thereof, the obligation of the Director General to bear the normal income taxes of a railroad corporation was limited to those "assessed for the period of federal control," and did not extend to income taxes under the Revenue Act of 1921, assessed for the year 1921, on income received by the company in that year (after termination of federal control) from the Director General in compensation for the use of its properties during federal control. P. 271 U. S. 312.

Page 271 U. S. 311

2. The divisions of income taxes prescribed by Revenue Act of 1918, § 230(b), between the Director General of Railroads and railroad companies did not apply to income taxes imposed by Revenue Act of 1921, and the latter prescribed no such divisions. Id.

61 Ct.Cls. 11 reversed.

Cross-appeals from a judgment of the Court of Claims in a suit to recover money collected from the plaintiff railway companies as income tax.

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