Cleveland R. Co. v. Commissioner

1. The City of Cleveland, Ohio, by ordinance and regulations provided a scale of fare to be charged by petitioner predicated upon a net return to petitioner each year of an amount sufficient to pay a dividend of 6 per cent upon its capital stock. The plan in substance was that if the net return to petitioner in any year exceeded a fixed amount, the rate of fare to be charged the public for the succeeding year was automatically reduced, and if the return in any year failed to equal the fixed return the fare was automatically increased for the succeeding year. The City of Cleveland did not own…