Railway Express Agency, Inc. v. Commissioner
United States Tax Court
The stock of the petitioner, organized to conduct an express business, is owned by about 70 railroads. It has individual contracts with about 400 railroads (including the 70) under which it accounts to them proportionately for the net revenues of the business. It issued its own bonds in the amount of $ 32,000,000 for purchase of property and operating capital. None of the railroads agreed to pay its expenses.
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The stock of the petitioner, organized to conduct an express business, is owned by about 70 railroads. It has individual contracts with about 400 railroads (including the 70) under which it accounts to them proportionately for the net revenues of the business. It issued its own bonds in the amount of $ 32,000,000 for purchase of property and operating capital. None of the railroads agreed to pay its expenses. The contracts refer to the payments made to the railroads as compensation. Additional property acquired with revenues is not shown to belong to the railroads. Held, the petitioner is not…
1Opinion of the Court
OPINION.
Disney, Judge:
The petitioner reported taxable net income each year and paid the resulting taxes. In arriving at net income it took as deductions amounts paid to the railroads as rail transportation revenue computed in accordance with provisions of the express operations agreements. Our attention has not been called to the manner in which the amounts were reflected in the returns. Account No. 104, under the name of “Express Privileges” of the uniform system of accounts, which system was prescribed by the Interstate Commerce Commission and followed generally by petitioner in filing its…
2Cases cited9 opinions
- Helvering v. HorstSupreme Court of the United States · 1940
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Helvering v. Northwest Steel Rolling Mills, Inc.Supreme Court of the United States · 1940
4 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Railway Express Agency v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1948
- Camp Concrete Rock Co. v. United StatesDistrict Court, S.D. Florida · 1959
- Railway Express Agency v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1948
- Railway Express Agency, Inc. v. CommissionerUnited States Tax Court · 1947