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IN RE CENTRAL OF GEORGIA RY. CO.

No. 4829.

47 F.Supp. 786 (1942)

In re CENTRAL OF GEORGIA RY. CO.

District Court, S. D. of Georgia, Savannah Division.

November 4, 1942.

Attorney(s) appearing for the Case

Lawton & Cunningham, of Savannah, Ga., for Merrel P. Callaway, Trustee.

Hull, Barrett, Willingham & Towill, of Augusta, Ga., for Augusta & Savannah R.R.

LOVETT, District Judge.

The main question now for decision is whether a long term lease of a railroad must expressly, directly and in words provide for the payment of federal taxes on income from rentals to justify the imposition of such a burden on the lessee.

The issue arises in this way: The debtor, a Georgia corporation, is being reorganized under section 77 of the Bankruptcy Act, 11 U.S.C.A. § 205. The Augusta and Savannah Railroad, owned by a Georgia...

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