Chicago & Alton Railroad v. United States
United States Court of Claims
The Reporter's statement of the case: The only question in the case is whether the proportionate loss under said sale is available to said company as a deduction in arriving at the net returns subject to the tax under the act of 1909 for the years 1911 and 1912. The Commissioner of Internal Revenue has established a uniform rule of administration in arriving at the net income of corporations on which the tax is to be reckoned under said act of August 5, 1909, which requires…
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The Reporter's statement of the case: The only question in the case is whether the proportionate loss under said sale is available to said company as a deduction in arriving at the net returns subject to the tax under the act of 1909 for the years 1911 and 1912. The Commissioner of Internal Revenue has established a uniform rule of administration in arriving at the net income of corporations on which the tax is to be reckoned under said act of August 5, 1909, which requires that the profit or loss sustained by reason of the disposal of notes or bonds issued by a corporation for a price above…
1Opinion of the Court
Booth, Judge,
reviewing the facts found to be establishedj delivered the opinion of the court:
The claimant railroad company in 1906 issued and sold at a discount $11,000,000 refunding bonds and $1,960,000 of equipment notes. The transaction was fully consummated within the above year, and the books of the company disclose the loss under the profit and loss account. Subsequently Congress passed the act of August 5, 1909, 36 Stat., 112, the material portions of which are as follows:
“ Sec. 38. That every corporation * * * organized for profit and having a capital stock represented by shares * * *…
2Cases cited1 opinion
- Maryland Casualty Co. v. United StatesUnited States Court of Claims · 1917
3Cited by10 opinions
- Western Maryland Ry. Co. v. Com'r of Internal RevenueCourt of Appeals for the Fourth Circuit · 1929
- Dodge Brothers v. United StatesCourt of Appeals for the Fourth Circuit · 1941
- Chicago, Rock Island & Pacific Railway Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- New York, Chicago & St. Louis R.R. v. CommissionerUnited States Board of Tax Appeals · 1931
- Commissioner of Internal Revenue v. Old Colony RRCourt of Appeals for the First Circuit · 1928
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