Southwestern Hotel Co. v. United States

HOLMES, Circuit Judge.

On September 1, 1933, the Southwestern Hotel Company, appellant, entered upon a 99-year lease on a hotel belonging to the Hilton Hotel Company. The lease contract between the parties provided, in Article II thereof, for the payment of graduated cash monthly rentals. In Article III of the lease, under the caption “Additional Money Rentals,” it was provided that, as a further consideration for the lease, the lessees should make all payments as they became due on a balance of $424,000 on a note secured by a mortgage on the hotel building.

The mortgage debt was payable in…