UNITED STATES v. CHICAGO, B. &. Q. R. CO.

No. 72-90.

412 U.S. 401 (1973)

UNITED STATES v. CHICAGO, BURLINGTON & QUINCY RAILROAD CO.

Supreme Court of United States.

Decided June 4, 1973.


Attorney(s) appearing for the Case

Richard B. Stone argued the cause for the United States. With him on the brief were Solicitor General Griswold, Acting Assistant Attorney General Ugast, Meyer Rothwacks, and Grant W. Wiprud.

Richard J. Schreiber argued the cause for respondent. With him on the brief was Richard T. Cubbage.


MR. JUSTICE BLACKMUN delivered the opinion of the Court.

The issue in this federal income tax case is whether the respondent, Chicago, Burlington & Quincy Railroad Company (CB&Q), an interstate common carrier railroad, may depreciate the cost of certain facilities paid for prior to June 22, 1954, not by it or by its shareholders, but from public funds.

Starting about 1930, CB&Q entered into a series of contracts with various Midwestern States....

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