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WESTERN PAC. R. CORPORATION v. WESTERN PAC. R. CO.

No. 26508.

85 F.Supp. 868 (1949)

WESTERN PAC. R. CORPORATION v. WESTERN PAC. R. CO. et al.

United States District Court, N. D. California, S. D.

September 6, 1949.

Attorney(s) appearing for the Case

Herman Phleger, Maurice E. Harrison, Moses Lasky, Brobeck, Phleger & Harrison, San Francisco, California, Frank C. Nicodemus, Jr., New York City, A. Perry Osborn, New York City, Norris Darrell, New York City, Mahlon Dickerson, New York City, Leroy R. Goodrich, Oakland, California, for plaintiff.

Rogers & Clark, Webster V. Clark, San Francisco, California, David Freidenrich, San Francisco, California, Julius Levy, New York City, for Russell M. Van Kirk, Henry Offerman and J. S. Farlee & Co., Inc., a corporation, plaintiffs in intervention, Pomerantz, Levy, Schreiber & Haudek, Abraham L. Pomerantz, New York City, of counsel.

Allan P. Matthew, James D. Adams, Robert L. Lipman, Burnham Enersen, Walker Lowry, McCutchen, Thomas, Matthew, Griffiths & Greene, San Francisco, California, for Western Pac. R. Co. et al., defendants.

Everett A. Mathews, Pillsbury, Madison & Sutro, San Francisco, Calif., A. Donald MacKinnon, Milbank, Tweed, Hope & Hadley, New York City, Forbes D. Shaw, Whitman, Ransom, Coulson & Goetz, New York City, for Western Realty Co., defendant.

GOODMAN, District Judge.

Plaintiff, a former holding company, whose interest in its subsidiary had been finally declared valueless in the subsidiary's reorganization proceeding under § 77 of the Bankruptcy Act, 11 U.S.C.A. § 205, has tendered the novel claim that it should be awarded, in equity, a part, if not all, of the subsidiary's income tax saving while in reorganization, resulting from the filing of consolidated corporate income tax returns.

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