United States v. St. Joe Paper Company, 18425.
| Court | United States Courts of Appeals. United States Court of Appeals (5th Circuit) |
| Writing for the Court | TUTTLE, , and RIVES and WISDOM, Circuit |
| Citation | 284 F.2d 430 |
| Parties | UNITED STATES of America, Appellant, v. ST. JOE PAPER COMPANY, Appellee. |
| Docket Number | No. 18425.,18425. |
| Decision Date | 12 December 1960 |
284 F.2d 430 (1960)
UNITED STATES of America, Appellant,
v.
ST. JOE PAPER COMPANY, Appellee.
No. 18425.
United States Court of Appeals Fifth Circuit.
December 12, 1960.
David O. Walters, Lee A. Jackson and Meyer Rothwacks, Attys., Charles K. Rice, Asst. Atty. Gen., Dept. of Justice, Washington, D. C., John L. Briggs, Asst. U. S. Atty., Jacksonville, Fla., E. Coleman Madsen, U. S. Atty., Miami, Fla., for appellant.
John S. Nolan, Charles T. Akre, Washington, D. C., Robert N. Miller, Miller &
Before TUTTLE, Chief Judge, and RIVES and WISDOM, Circuit Judges.
TUTTLE, Chief Judge.
The United States appeals from a judgment of the District Court allowing as a deduction from income tax attorneys' fees paid by appellee in its long struggle over the equity ownership of the Florida East Coast Railway Company. The basic facts upon which a correct determination of this question must depend are not in dispute. Nor are the legal principles which must apply. The appellant contends that the trial court drew the wrong conclusion from the undisputed facts. We are constrained to agree.
The Railway was placed in receivership in 1931. This receivership was "extraordinarily successful" in that it maintained the railroad in operation, improved it physically and also accumulated substantial cash. It also provided for payment of all current interest on the $12,000,000 first mortgage bonds. There was a default in the interest on the $45,000,000 5% first and refunding bonds. In 1941 a committee representing holders of the first and refunding bonds filed a plan of reorganization with the Interstate Commerce Commission. Under this plan holders of this series of bonds would receive new bonds and all of the stock of the reorganized company in lieu of their present defaulted bonds. Thereafter appellee's predecessor corporation and trustees of the Alfred I. duPont Estate, who owned and controlled such corporation and also owned and controlled appellee, acquired $3,500,000 of the first and refunding bonds. They then filed a plan of reorganization which also provided for the issuance of new capital stock, of which the duPont trustees would be entitled to a majority. The Commission approved a plan which in substance was that of the committee. During the consideration of the plans by the Commission, and after its approval of the plan which did place all of the reorganized company's stock in the hands of holders of its first and refunding bonds, St. Joe Paper Company, and its predecessor, and the duPont trustees acquired an additional...
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California and Hawaiian Sugar Refin. Corp. v. United States, No. 287-59
...by lessor resulting in acquisition of building that tenant had constructed while in possession); United States v. St. Joe Paper Co., 284 F.2d 430 (C.A.5, 1960) (acquisition of equity interest in railroad); Safety Tube Corp. v. Commissioner, 168 F.2d 787 (C.A.6, 1948) (defending title to pat......
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Manufacturers Hanover Trust Co. v. United States, No. 311-61.
...87 F.Supp. 935, 115 Ct.Cl. 428 (1950); Vernor v. United States, 23 F.Supp. 532, 87 Ct.Cl. 435 (1938); United States v. St. Joe Paper Co., 284 F.2d 430 (C.A.5, 1960); Brown v. Commissioner, 215 F.2d 697 (C.A.5, 1954); Safety Tube Corp. v. Commissioner, 168 F.2d 787 (C.A.6, 1948); Johnson v. ......
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Honodel v. C.I.R., Nos. 82-7334
...Id. at 576, 90 S.Ct. at 1305, citing Spangler v. Commissioner, 323 F.2d 913, 921 (9th Cir.1963); United States v. St. Joe Paper Co., 284 F.2d 430, 432 (5th The analogy between the investment fee charged by FMS and brokerage fees is close. Brokerage fees are an ancillary cost of capital acqu......
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Woodward v. Commissioner of Internal Revenue, No. 412
...See, e.g., Spangler v. Commissioner of Internal Revenue, 323 F.2d 913, 921 (C.A.9th Cir. 1963); United States v. St. Joe Paper Co., 284 F.2d 430, 432 (C.A.5th Cir. 1960). See generally 4A J. Mertens, Law of Federal Income Taxation §§ 25.25, 25.26, 25.40, 25A.15 (1966 rev.). The law could ha......
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California and Hawaiian Sugar Refin. Corp. v. United States, No. 287-59
...by lessor resulting in acquisition of building that tenant had constructed while in possession); United States v. St. Joe Paper Co., 284 F.2d 430 (C.A.5, 1960) (acquisition of equity interest in railroad); Safety Tube Corp. v. Commissioner, 168 F.2d 787 (C.A.6, 1948) (defending title to pat......
-
Manufacturers Hanover Trust Co. v. United States, No. 311-61.
...87 F.Supp. 935, 115 Ct.Cl. 428 (1950); Vernor v. United States, 23 F.Supp. 532, 87 Ct.Cl. 435 (1938); United States v. St. Joe Paper Co., 284 F.2d 430 (C.A.5, 1960); Brown v. Commissioner, 215 F.2d 697 (C.A.5, 1954); Safety Tube Corp. v. Commissioner, 168 F.2d 787 (C.A.6, 1948); Johnson v. ......
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Honodel v. C.I.R., Nos. 82-7334
...it." Id. at 576, 90 S.Ct. at 1305, citing Spangler v. Commissioner, 323 F.2d 913, 921 (9th Cir.1963); United States v. St. Joe Paper Co., 284 F.2d 430, 432 (5th The analogy between the investment fee charged by FMS and brokerage fees is close. Brokerage fees are an ancillary cost of capital......
-
Woodward v. Commissioner of Internal Revenue, No. 412
...See, e.g., Spangler v. Commissioner of Internal Revenue, 323 F.2d 913, 921 (C.A.9th Cir. 1963); United States v. St. Joe Paper Co., 284 F.2d 430, 432 (C.A.5th Cir. 1960). See generally 4A J. Mertens, Law of Federal Income Taxation §§ 25.25, 25.26, 25.40, 25A.15 (1966 rev.). The law could ha......