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IN RE NEW YORK, N. H. & H. R. CO.

No. 148.

109 F.2d 136 (1940)

In re NEW YORK, N. H. & H. R. CO. BANKERS TRUST CO. v. PALMER et al.

Circuit Court of Appeals, Second Circuit.

January 15, 1940.

Attorney(s) appearing for the Case

White & Case, of New York City (Joseph M. Hartfield and Jesse E. Waid, both of New York City, of counsel), for appellant.

Robert G. Dodge and Oscar M. Shaw, both of Boston, Mass. (Charles B. Rugg and Archibald Cox, both of Boston, Mass., of counsel), for appellee.

Before SWAN, AUGUSTUS N. HAND, and PATTERSON, Circuit Judges.

SWAN, Circuit Judge.

In 1893 the Old Colony Railroad Company leased its properties to the New York, New Haven and Hartford Railroad Company. In 1920 the New Haven assigned this leasehold, with other property, to the Bankers Trust Company, as trustee, to secure an issue of New Haven bonds. In 1935 the New Haven instituted the present reorganization proceedings. Thereafter the New Haven trustees rejected the Old Colony lease as unprofitable; whereupon the Old Colony...

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