Sioux City & Pacific Railroad v. United States

Syllabus

<p>Internal Revenue — Land Grant Railroads — Statutes—Taxation.</p> <p>Under the act of July 1st, 1862, 12 Stat. 492-8, and the acts in addition to it, plaintiff in error received from defendant in error subsidy bonds, which were made by statute a lien upon its road : Held, That, in a suit to collect an internal revenue tax on the undivided net earnings of the road, carried to a fund or to construction account, the plaintiff was not entitled to have the interest upon these bonds deducted from its net earnings before settling the amount to be subject to the tax ; but that the amount of that interest, if earned and. carried to a fund or charged to construction, was taxable.</p>