contribution by her son, who is an officer in the Navy,
to keep her from dependence upon charity, and she is not
furnished public quarters, the officer is entitled to rental
allowance on her account. Freeland, 364.
II. The act of March 3, 1915, does not provide the method of
detailing men to duty involving actual flying in air-
craft, and an enlisted man of the Navy regularly detailed
to such duty, is by reason thereof entitled to the statu-
tory increase in pay. Carleton, 564.
I. Proof that the devices employed in the caterpillar tractor
manufactured for and used by the United States, alleged
to infringe plaintiff's patent on “an improvement in
antifriction mountings," were patented more than two
years prior to plaintiff's application for patent, fore-
closes the issue of infringement and precludes recovery.
Paridy et al., 375.
II. Letters Patent No. 1145066, for transmitting apparatus
for wireless telegraphy, issued on July 6, 1915, to
plaintiff as assignee of Albert H. Johnson, held valid,
and infringed by the United States as to claims 1, 4, 6,
7, and 8 thereof. National Electrical Supply Co., 617.
III. Designs Letters Patent No. 48638, for a casing for wireless
telegraph generator, issued on February 28, 1916, to
plaintiff as assignee of Albert H. Johnson, held invalid
for want of ornamentality. Id.
IV. An illustration in a prior patent showing similar arrange-
ment of parts is not anticipatory where such an ar-
rangement, read in connection with the inventor's specifi-
cations and claims, accomplishes a different purpose
and the essential thing relied on in the later patent is
nowhere disclosed in the first. Id.
V. Where a sale is made of a device, without profit, solely
with a view to perfecting it through experimentation
by the vendee, which results in its perfection by the in-
ventor, and no other sales are made or attempts to put
it on the market, the use so made of the device is experi-
mental and not public within the meaning of section
4920, R. S. Id.
See Army Pay; Marine Corps Pay; Navy Pay; Treasury Pay;
Veterans' Bureau Pay.
PROPOSALS AND BIDS.
See Contracts, V, VI; Sale of Supplies.
See Dent Act, III; Railroad Transportation, III; Taxes, XXV,
XXVII.
RAILROAD TRANSPORTATION.
I. Rates on military impedimenta; free baggage-car rule; ac-
counting with Railroad Adminisration. Houston & Texas
Central R. R. Co., 362.
II. Military arrangements; usually-traveled routes. Cleveland,
Cincinnati, Chicago & St. Louis Ry. Co., 534.
III. Notices filed with the Quartermaster General of the Army
June 11, 1921, and June 28, 1922, by interested carriers,
that transportation of the National Guard was considered
by them as not that of "troops of the United States"
within the meaning of the land-grant acts, that they did
not waive their right to claim commercial fares therefor
without land-grant deductions, and that the purpose of the
notices was to protect their rights until the question was
finally adjudicated in the courts, were sufficient, under
the rule stated in Southern Pacific Co. v. United States,
268 U. S. 263, and for the period mentioned to show that
said carriers did not acquiesce in land-grant deductions in
bills presented at net fares in reliance upon the said
notices. Minneapolis, St. Paul & Sault Ste. Marie Ry. Co.,
557.
See also Contracts, 1, VIII; Statutes of Limitation; Taxes, XV.
REFORMATION OF CONTRACT.
I. Where a Government contractor, in advance of performance,
has in writing confirmed the terms of a verbal contract
as they are understood by the Government, he is not
entitled to have the contract reformed for the purpose of
changing the terms so confirmed. Goltra, 147.
II. A written contract with the United States, whereby plain-
tiff was to furnish the material therefor and construct
certain steel radio towers, by mutual mistake of the
parties contained a clause requiring structural steel to
be taken from stock, whereas their intention was that
some of it might be obtained from mills. Held, that
plaintiff, in suit to recover the full contract price, re-
duced by the Government because of procurement of
part of the steel from the mills, is entitled to have the
contract reformed to express the real agreement, and to
judgment on the contract as reformed. Austin Company,
504.
See Lever Act; Navy Pay, II; Taxes, XV, XXV, XXIX.
RESERVATION OF SUIT.
See Settlement Contracts, III.
RETIRED PAY.
See Marine Corps Pay.
SALE OF SUPPLIES.
Where supplies are sold by the Government under a proposal
inviting inspection prior to opening of bids and stipulating
that they are sold "as is," and that no refund or adjustment
will be entertained on account of supplies not coming up to
the standard of expectations," and there is no evidence of bad
faith on the part of the Government, a purchaser who makes
no inspection can not recover damages because some of the
supplies were defective or deteriorated, but having bid upon a
certain quantity and made payment therefor he is entitled to
recover the purchase price on a shortage in delivery. Brody,
538.
SETTLEMENT CONTRACTS.
I. (1) Where upon cancellation of the prime contract a
contract of settlement is entered into by officers having
full authority to do so, under which a specified sum is
paid the contractor as "full and final compensation for
articles of work delivered, services rendered, expendi-
tures and obligations incurred under the original con-
tract and this contract," and there is no element of fraud
present or such gross mistake as to impute fraud, the
settlement will not be set aside to consider a claim that
the sum so paid was in excess of that actually due.
(2) In the circumstances recited, the Government, if it
seeks to have the settlement set aside, must first offer to
restore to the contractor the property surrendered as a
condition to the execution of the contract. Pittsburgh
Plate Glass Co., 256.
II. Where an award under the Dent Act, on distinct items
of a claim, recites that it is in full payment, adjustment,
and discharge of a contract that has been canceled under
clauses therein providing for cancellation and making the
Secretary of War final arbiter over disputes, but does not
in fact include disputed items which are thereafter em-
braced in a general settlement signed by the contracting
officer under the direction and authority of the Secre-
tary of War, the award so made, accepted by the con-
tractor, does not preclude it from recovering on the
subsequent contract of settlement. Dayton Lumber &
Mfg. Co., 276.
III. Where the Government cancels a contract which does not
authorize such action, and the parties thereto settle the
amount of loss incurred but it is thereafter refunded
SETTLEMENT CONTRACTS-Continued.
under an agreement rescinding the settlement so made
and reserving to the contractor the right to sue in the
Court of Claims, the contractor is entitled to recover.
American Can Co., 285.
SPECIAL JURISDICTIONAL ACTS.
I. Judgment given under the special jurisdictional act of
March 3, 1927, for land taken from plaintiff and damages
to remainder of the tract by reason of the taking.
Livingston, 314.
II. The appraised value of plaintiff's case of silk, imported by
it, lost in the appraisers' stores and not returned, allowed
by the court under the special jurisdictional act of De-
cember 16, 1926, together with duty paid thereon. Rosen-
thal Co., 643.
See also Indians.
STATUTES OF LIMITATION.
The statute of limitations, sec. 156, Judicial Code, runs from the
time that carriers complete a passenger service, and not from
the date that the transportation is requested. Cleveland, Cin-
cinnati, Chicago & St. Louis Ry. Co., 534.
See also Assignments, I; Taxes, XIX, XX.
I. A club which advances the science of chemistry and pro-
motes the interests of chemists, and whose social features
are remotely incidental thereto, is not a social club
within the meaning of the statutes which impose a tax
upon the initiation fees and annual dues of a "social,
athletic, or sporting club or organization." Chemists'
Club, 156.
II. Under the income tax laws dividends become income in the
hands of the stockholders upon their distribution by the
corporation, and not prior thereto at a date which a court
in ordering distribution fixes as the time when the distri-
bution should have been made. Dodge et al., administra-
tors, 178.
III. Where the members of a partnership, upon organizing a
corporation, of which they are the sole stockholders, to
take the place of it, determine upon a capitalization less
than the former working capital, but retain the differ-
ence in the business and receive therefor from the new
company interest-bearing debenture notes payable at a
fixed date and subordinate to claims of general creditors,
the fund so covered is borrowed money, and not invested
capital as defined in section 207 of the revenue act of
1917. Unterberg & Co., 197.
IV. (1) The declaration by directors of a corporation that divi-
dends are to be paid from the earnings of a designated
year does not affect the application of a taxing statute
providing from what year the earnings shall be deemed
to have been distributed. (2) Where on February 21,
1919, a stock dividend of 900 per cent is declared which
is sufficient to exhaust the undistributed earnings accum-
ulated prior to March 1, 1913, and on February 28, 1919.
a cash dividend of 20 per cent is declared on the capital
stock so increased, the cash dividend is, under sections
31 of the revenue act of 1917 and 201 of the revenue act
of 1918, to be treated as paid from earnings accumulated
after February 28, 1913, notwithstanding a declaration
by the directors that it is payable out of undistributed
earnings prior to March 1, 1913. Nolde, 204.
V. A manufacturing corporation, originally organized for
profit, continuing after the disposition and sale of its
good will and manufacturing assets to maintain its cor-
porate entity and carry on with its remaining assets, and
engaging in business transactions inimical to the processes
of final liquidation, all of which results in profit to its
stockholders, is doing business within the meaning of
section 1000 (a) of the revenue act of 1918. Chevrolet
Motor Co., 211.
VI. Where under a trust created by will a beneficiary for life
receives, without diminution for depreciation of the
corpus, the income of part of the estate, and said income
is subject under the terms of the will to expenses of
repairs and improvements that are largely within the
discretion of the trustees to make, the income tax is upon
the entire amount received by the beneficiary and is not
to be diminished by deductions for depreciation provided
in section 214 of the revenue act of 1918. Roxburghe,
223.
VII. Section 905 of the revenue acts of 1918 and 1921, imposing
an excise tax on articles of jewelry, articles ornamented
therewith, and specially designated articles, includes only
such articles as are similar in character, and designed for
similar uses as those therein designated, and does not
embrace musical instruments ornamented with jewelry.
Conn, Ltd., 230.
VIII. Having informally rented certain premises for a term of
five years, with privilege of renewal for another five
years, a national bank in the State of Washington, lessee,
without obligation to do so, made certain permanent
improvements for the conduct of its business, occupied
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