Capitol Lumber Co. v. Department of Taxation

The appellant contends that the evidence establishes that the lease in question was a binding and valid obligation and that its terms were fair and reasonable when entered into, and that it was one which might have been entered into between strangers dealing at arm’s length. The appellant also argues that the crucial issue is the reasonableness of the lease and not the reasonableness of the amount of rent the lease actually produced during 1951 and 1952. The appellant does not contend that the payments for each of the years would have been fair rents under a fixed-rental lease; but if the…