Southern Pacific Co. v. United States,
Annotate this Case
307 U.S. 393 (1939)
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U.S. Supreme Court
Southern Pacific Co. v. United States, 307 U.S. 393 (1939)
Southern Pacific Co. v. United States
Argued March 29, 1939
Decided May 29, 1939
307 U.S. 393
1. Where a land grant railroad, having an established route partly land grant aided between two terminal points, developed an alternative route which in part was identical with the original route and, to that extent, land grant aided, held that the Government was entitled, under its land grant Act contract, to compensate the railroad for terminal-to-terminal service on the basis of the lower tariff available on the alternative route less the higher land grant percentage deduction applicable on the original route, irrespective of what route was actually used in shipment. Pp. 307 U. S. 394, 307 U. S. 401.
2. This conclusion is consistent with the long continued administrative construction given land grant contracts. P. 307 U. S. 401.
3. Doubts in respect of the interpretation of public grants are to be resolved in favor of the Government. P. 307 U. S. 401.
87 Ct.Cls. 442 affirmed.
Certiorari, 306 U.S. 625, to review a judgment dismissing the petition in a suit brought by the railroad company against the United States to recover sums claimed to be due on account of transportation charges.