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LOVELAND & HINYAN CO. v. PERE MARQUETTE R. CO.

No. 4085.

2 F.2d 948 (1924)

LOVELAND & HINYAN CO. et al. v. PERE MARQUETTE R. CO.

Circuit Court of Appeals, Sixth Circuit.

December 2, 1924.

Attorney(s) appearing for the Case

Clare J. Hall, of Grand Rapids, Mich. (Joseph R. Gillard, of Grand Rapids, Mich., on the brief), for appellants.

J. C. Kauffman, of Detroit, Mich. (William K. Williams and Seward L. Merriam, both of Detroit, Mich., on the brief), for appellee.

Before DENISON, MACK, and DONAHUE, Circuit Judges.

DENISON, Circuit Judge.

Upon the filing of creditors' bill in the court below, receivers were appointed for the Pere Marquette Railroad Company. It is at once apparent that the current and normal volume of valid claims made by shippers or consignees for failure to carry and deliver freight under the contract of shipment constitutes, in a certain broad sense, an operating expense, for, unless the railroads habitually paid such valid claims, they would soon have no...

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