Cities Service Company v. United States

We affirm essentially for the reasons stated in Judge Tenney’s opinion for the district court, reported at 443 F.Supp. 392 (S.D.N.Y.1978). In the prior appeal in this case, Cities Service Co. v. United States, 522 F.2d 1281 (2d Cir. 1974), cert, denied, 423 U.S. 827, 96 S.Ct. 43, 46 L.Ed.2d 43 (1975), we held that issue price for the purpose of calculating “bond discount” was the market value of the debentures on the date of issue. In addition, following the Supreme Court’s holding in Commissioner v. National Alfalfa Dehydrating & Milling Co., 417 U.S. 134, 147, 94 S.Ct. 2129, 2136, 40…