IN RE NATIONAL PUBLIC SERVICE CORPORATION

No. 234.

88 F.2d 19 (1937)

In re NATIONAL PUBLIC SERVICE CORPORATION.

Circuit Court of Appeals, Second Circuit.

February 15, 1937.


Attorney(s) appearing for the Case

Garrett A. Brownback, of New York City, for petitioning creditors-appellants.

John W. Montgomery, of New York City (Charles M. Travis and George M. LePine, both of New York City, of counsel), for debtor-appellant.

Milbank, Tweed, Hope & Webb, of New York City (Lawrence Bennett, of New York City, of counsel), for appellee Public Service Corporation of New Jersey.

Sage, Gray, Todd & Sims, of New York City (Melber Chambers and Charles M. Kritzman, both of New York City, of counsel), for appellee New York Trust Co.

Albert Hubschman and Harold Stern, both of New York City, for respondent-creditors deBerg, Luey, and McKinlay.

Wollman & Wollman and Robert G. Starr, all of New York City (Robert G. Starr and Aaron B. Coleman, both of New York City, of counsel), amici curiæ.

Before MANTON, AUGUSTUS N. HAND, and CHASE, Circuit Judges.


AUGUSTUS N. HAND, Circuit Judge.

The debtor, National Public Service Corporation, is a public utility holding company. It issued $20,000,000 principal of debentures in 1928 and secured them under a trust indenture of which the New York Trust Company was trustee by stocks of various subsidiary corporations.

On July 8, 1932, National Public Service Corporation was adjudicated a bankrupt and the Irving Trust Company became trustee in bankruptcy. The unpledged...

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