This United States Supreme Court case involved the Indianapolis & St. Louis Railroad Company and the United States as an intervenor. The case centered around the question of whether the railroad company was liable for the payment of taxes on certain bonds issued by the company. The company had issued bonds to finance the construction of a railroad line, and the United States argued that the bonds were subject to taxation. The company argued that the bonds were exempt from taxation under the terms of the contract between the company and the United States. The Supreme Court held that the bonds were subject to taxation, and that the company was liable for the payment of taxes on the bonds. The Court reasoned that the contract between the company and the United States did not exempt the bonds from taxation, and that the company was therefore liable for the payment of taxes on the bonds. The Court also held that the company was not entitled to any compensation from the United States for the payment of taxes on the bonds.

In United States, Intervenor v. Indianapolis & St. Louis Railroad Company, the Supreme Court was tasked with determining whether or not a railroad company had to pay taxes on certain bonds that were issued by the state of Indiana in order to finance construction of its railway line. The majority opinion held that since these bonds were issued for public purposes and did not constitute income for the railroad company, they should be exempt from taxation under federal law. Justice Field dissented from this decision arguing that while it is true that these bonds are used for public purposes and do not generate any direct income for the railroad company, they still represent an indirect benefit as their value increases over time due to inflation and other economic factors which would result in increased profits if sold at a later date. He argued further that Congress has authority under Article I Section 8 Clause 1 of the Constitution (the Taxing Clause) to tax all forms of property including those owned by corporations such as railroads regardless of whether or not there is an immediate financial gain associated with them.