United States v. Cowden Mfg. Co., 312 U.S. 34 (1941)

United States v. Cowden Manufacturing Co.


No. 188


Argued December 20, 1940
Decided January 13, 1941
312 U.S. 34

CERTIORARI TO THE COURT OF CLAIMS

Syllabus

A contract with the United States for furnishing a quantity of garments stipulated that the price payable to the contractor should be increased to the extent of such subsequently imposed federal taxes as are

made applicable directly upon the production, manufacture, or sale of the supplies covered by this contract and are paid by the contractor on the articles herein contracted for. . . .

Held not to obligate the United States in respect to taxes subsequently imposed under the Agricultural Adjustment Act on the processing of materials sold to the contractor and used in the manufacture of the garments, for which taxes the processors were reimbursed by the contractor pursuant to agreements between them. P. 36.

The taxes in question were not "directly" applicable to the manufacture of the "supplies covered by this contract," nor "paid by the contractor," within the meaning of the contract.

91 Ct.Cls. 75; 32 F.Supp. 141, reversed.

Certiorari, 311 U.S. 624, to review a judgment against the United States in a suit upon a contract.