Altoma (D) operated a grain elevator and warehouse under a series of leases from 1919 to 1967. The Government (P) decided to acquire the land by eminent domain and only wanted to pay P the fair market value of the legal rights possessed by D by virtue of the lease and that no consideration should be given to any additional value based on the expectation that the lease might be renewed. D argued that just compensation should be measured by what a willing buyer would pay in an open market for D's leasehold. The real essence of the dispute was that P did not want to pay more than salvage value for the buildings and improvements while D wanted to be compensated for the market value of its buildings and improvements.

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