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IN RE WESTERN PAC. R. CO.

No. 9852.

122 F.2d 807 (1941)

In re WESTERN PAC. R. CO. A. C. JAMES CO. v. RECONSTRUCTION FINANCE CORPORATION et al.

Circuit Court of Appeals, Ninth Circuit.

Rehearing Denied December 11, 1941.

Attorney(s) appearing for the Case

Garret W. McEnerney and Andrew F. Burke, both of San Francisco, Cal., Whitman, Ransom, Coulson & Goetz and Robert E. Coulson, all of New York City, and Horace E. Whiteside, of Ithaca, N. Y., for appellant.

Cravath, deGersdorff, Swaine & Wood, of New York City, and Morrison, Hohfeld, Foerster, Shuman & Clark, of San Francisco, Cal. (Robert T. Swaine, of New York City, and Herbert W. Clark, of San Francisco, Cal., of counsel), for appellee Institutional Bondholders Committee.

Chickering & Gregory, of San Francisco, Cal., and Milbank, Tweed & Hope, of New York City (Donald M. Gregory, of San Francisco, Cal., and Orville W. Wood, of New York City, of counsel), for appellees Crocker First Nat. Bank etc.

C. M. Clay, Asst. Gen. Counsel, and Emmett McCaffery, Counsel, Reconstruction Finance Corporation, both of Washington, D. C., and James S. Moore, Jr., of San Francisco, Cal. (Claude E. Hamilton, Jr., Gen. Counsel, Reconstruction Finance Corporation of Washington, D. C., and Brobeck, Phleger & Harrison, of San Francisco, Cal., of counsel), for appellee Reconstruction Finance Corporation.

Before DENMAN, MATHEWS, and STEPHENS, Circuit Judges.

MATHEWS, Circuit Judge.

In a proceeding by the Western Pacific Railroad Company, a railroad corporation (hereafter called the debtor), under § 77 of the Bankruptcy Act, 11 U.S.C.A. § 205, the trustees petitioned the District Court for instructions as to whether or not they should pay, out of funds on hand, part of an indebtedness of $10,000,000 evidenced by their certificates issued pursuant to paragraph (3) of subsection (c) of § 77, all of which certificates...

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