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ST. LOUIS, K. & S.E. R. CO. V. UNITED STATES, 267 U. S. 346 (1925)

U.S. Supreme Court

St. Louis, K. & S.E. R. Co. v. United States, 267 U.S. 346 (1925)

St. Louis, Kennett & Southeastern Railroad Co. v. United States

No. 229

Argued January 23, 1925

Decided March 2, 1925

267 U.S. 346


1. A railroad company in a contract with the Director General of Railroads expressly accepted the covenants and obligations of the latter and the rights arising thereunder

"in full adjustment, settlement, satisfaction, and discharge of any and all claims and rights

Page 267 U. S. 347

at law or in equity, which it now has or hereafter can have against the United States, the President, the Director General or any agent or agency thereof by virtue of anything done or omitted, pursuant to the acts of Congress herein referred to,"

viz., the Federal Control Act, the Act of Aug. 29, 1916, c. 418, 39 Stat. 645, and the Joint Resolutions of April 6 and December 7, 1917, 40 Stat. 1, 429. Held, that a claim of the railroad under § 3 of the Federal Control Act for a deficit in operating income, etc., previously incurred under federal control, was settled and released by the contract, and that allegations in the company's petition denying this effect and intention were mere conclusions of law, not admitted by demurrer. P. 267 U. S. 348.

2. Ordinarily, the defense of release, or accord and satisfaction, must be pleaded in bar, but where the fact appears either in the body of the petition or from an exhibit annexed, the defense may be availed of on demurrer. P. 267 U. S. 350.

3. The agreement was within the authority of the Director General. Id.

58 Ct.Clms. 339 affirmed.

Appeal from a judgment of the Court of Claims dismissing the petition on demurrer.

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