MR. JUSTICE BLACKMUN delivered the opinion of the Court.
The issue in this federal income tax case is whether the respondent, Chicago, Burlington & Quincy Railroad Company (CB&Q), an interstate common carrier railroad, may depreciate the cost of certain facilities paid for prior to June 22, 1954, not by it or by its shareholders, but from public funds.
Starting about 1930, CB&Q entered into a series of contracts with various Midwestern States....
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