CONTINENTAL BANK v. ROCK ISLAND RY.

Nos. 479 and 480.

294 U.S. 648 (1935)

CONTINENTAL ILLINOIS NATIONAL BANK & TRUST CO. v. CHICAGO, ROCK ISLAND & PACIFIC RY. CO.

Supreme Court of United States.

Decided April 1, 1935.


Attorney(s) appearing for the Case

Mr. Herbert A. Friedlich, of counsel for Continental Illinois National Bank & Trust Co., and Mr. Paul D. Miller, of counsel for the Chase National Bank, argued the cause for all five of the banks and trust companies. These petitioners all united in one brief, from which the following summary of points is taken. The appearances on the brief were: Messrs. Isaac H. Mayer, Carl Meyer, David F. Rosenthal, and Herbert A. Friedlich for the Continental Illinois National Bank & Trust Co.; Messrs. Henry Root Stern and Paul D. Miller for the Chase National Bank; Messrs. T.M. Pierce and S. Mayner Wallace for the Mississippi Valley Trust Co.; Mr. Hal C. Bangs for Harris Trust & Savings Bank; and Messrs. Edwin W. Sims, Franklin J. Stransky, and James P. Carey, Jr., for the New York Trust Co.

Messrs. A.A. Berle, Jr., and Cassius M. Clay, with whom Solicitor General Biggs and Mr. Stanley Reed were on the brief, for the Reconstruction Finance Corp., petitioner in Nos. 489 and 490.

Mr. Elihu Root, Jr., with whom Messrs. George W. Wickersham, Edward C. Bailly, Wilkie Bushby, Joseph Schreiber, W. Lloyd Kitchel, and Eugene J. Conroy were on the brief, for the Bondholders Protective Committees, respondents.

Mr. Edward W. Bourne, with whom Messrs. James H. McIntosh and Clifton P. Williamson were on the brief, for the Protective Committee for the Chicago, R.I. & P. Ry. Co. General Mortgage Bonds, respondent.

Mr. Marcus L. Bell, with whom Messrs. W.F. Dickinson and W.F. Peter were on the brief, for the Trustees in Bankruptcy, respondents.


MR. JUSTICE SUTHERLAND delivered the opinion of the Court.

On June 7, 1933, The Chicago, Rock Island & Pacific Railway Co. filed a petition seeking a reorganization under § 77 of the Bankruptcy Act, in the federal District Court for the Northern District of Illinois, Eastern Division, alleging that it was "unable to meet its debts as they mature." Nine of the debtor's subsidiaries...

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