Edwards v. Cuba Railroad Co., 268 U.S. 628 (1925)

Edwards v. Cuba Railroad Company

No. 324

Argued April 15, 1925
Decided June 8, 1925
268 U.S. 628

ERROR TO THE DISTRICT COURT OF THE UNITED STATES

FOR THE SOUTHERN DISTRICT OF NEW YORK

Syllabus

1. The meaning of "income," as used in § 38 of the Corporation Excise Tax Law of 1909, held, in its application to the case, not distinguishable from the meaning of the same word in the Income Tax Law of 1913 and the Revenue Act of 1916. P. 631.

2. The Sixteenth Amendment, like other laws authorizing or imposing taxes, is not to be extended beyond the meaning clearly indicated by its words. P. 631.

3. Money subsidies granted by the Cuban government to a railroad company of this country, to promote the construction of railroads in Cuba and in consideration also of reduced rates to the public as well as reduced rates and other privileges for the government, and which were fixed and paid proportionately to mileage actually constructed, and were used for capital expenditures by the company, though not entered on its books as in reduction of cost of construction, held not income within the Sixteenth Amendment. P. 632.

Affirmed.

Error to a judgment for plaintiff railroad in the district court in an action to recover money paid as income and corporation excise taxes.