Brinker-Johnson Co. And Walter W. Johnson v. Reconstruction Finance Corporation

Appellants are here seeking recovery of certain interest payments made to the Reconstruction Finance Corporation, hereafter R. F. C. We have concluded that appellants’ proper forum is the Court of Claims.

Brinker-Johnson Co. was organized to operate certain Alaska gold mining property. To this end it sought, and, in 1941, together with appellant Walter W. Johnson, obtained a loan of some $250,-000 from appellee R. F. C. The latter turned the said money over to certain banks as trustees for the use of appellants. Withdrawals were made subject to the approval of an R. F. C. representative.

In return appellants gave R. F. C. twenty-five interest bearing notes for $10,000 each. The terms of the loan limited the use of the borrowed funds to the development and exploitation of the Alaska mine. Appellants agreed to diligently carry on the said project and that all receipts of the operation would be turned over to the trustee banks to be applied first against the indebtedness due R. F. C.

The property was equipped and was operated through the 1941 and 1942 mining seasons. On October 8, 1942 the War Production Board promulgated Limitation Order L-208, 7 F. R. 7992, which closed down all…