Southern Pac. Co. v. Edwards

PRANK J. COLEMAN, District Judge.

The two questions presented are purely legal and arise in the computation of the plaintiff’s excess profits tax for the year 3 917. They are (1.) what valuation should be allowed for certain land in determining the amount of invested capital, and (2) what effect should he given in a consolidated return to the fact that the land was transferred from one affiliate to another.

The plaintiff had two subsidiary corporations, Southern Pacific Railway Company and the Southern Paeifie Land Company, of whieh it owned the entire capital stocks, except directors’…