
    ST. LOUIS, KENNETT & SOUTHEASTERN RAILROAD COMPANY v. THE UNITED STATES ET AL.
    [58 C. Cls. 339; 287 U. S. 346]
    Judgment was rendered in favor of the United States in the court below. On appeal the judgment was affirmed, the Supreme Court deciding:
    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 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 August 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 section 3 of the Federal Control Act for a deficit in operating income, etc., previously incurred under Federal control, was settled and released by tlie contract, and denying this effect and intention were mere conclusions of law, not admitted by demurrer.
    March 2, 1925.
    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.
    3. The agreement was within the authority of the Director General.
   Mr. Justice BraNdeis

delivered the opinion of the Supreme Court  