Citations
- 54 F.2d 738
Full opinion text
HICKS, Circuit Judge.
Petition by Kentucky & Indiana Terminal Railway Company, a corporation, to review a decision of the Board of Tax Appeals affirming the action of the Commissioner of Internal Revenue in assessing against it on re-determination a deficiency in income taxes for the year 1923 in the sum of $30,697.87.
Prior to January 1,1918, petitioner owned and operated railroad terminal facilities in Louisville. As a component part thereof it owned a bridge across the Ohio liver over which it operated a double track railroad. The bridge carried independent electric, telephone, and street railway lines, and the usual vehicular and pedestrian traffic, for all of which petitioner charged rentals and tolls. The stoek of petitioner was owned by three railway companies, each owning one-third. Petitioner’s properties, including that portion of the bridge carrying the railway tracks, were used for the business of the stockholding ' companies.
All of petitioner’s properties were taken over by the United States and operated by the Director General of Railroads under federal control from January 1,1918, until March 1, 1920. There was no agreement for “just compensation” to petitioner for the use of its property upon the basis of the “standard return” (Federal Control Act, eh. 25, § 1, 40 Stat. 451), but during federal control the Director General did pay petitioner from time to time on account of compensation an amount sufficient to pay the interest on petitioner’s bonds. This was substantially all that was paid to petitioner during that period. Subsequent to the return of its property at the end of federal control, petitioner and the Director General entered into negotiations for a settlement of all matters between them. Upon presentation