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STATE OF NEW YORK v. KILSHEIMER

No. 151, Docket 24852.

251 F.2d 175 (1957)

STATE OF NEW YORK, Claimant-Appellant, v. James B. KILSHEIMER, III, and Jacob Grumet, Receivers for New York, Ontario and Western Railway Company, et al., Respondents-Appellees.

United States Court of Appeals Second Circuit.

Decided December 27, 1957.

Attorney(s) appearing for the Case

Abe Wagman, Asst. Atty. Gen. of the State of New York, New York City (Louis J. Lefkowitz, Atty. Gen. of the State of New York, John R. Davison, Sol. Gen., Albany, N. Y., and Anna M. Perdue, Asst. Atty. Gen., New York City, on the brief), for State of New York, claimant-appellant.

F. W. H. Adams, of Satterlee, Warfield & Stephens, New York City (Henry J. Formon, Jr., of Satterlee, Warfield & Stephens, New York City, on the brief), for respondents-appellees James B. Kilsheimer, III, and others.

Foster Bam, Asst. U. S. Atty., S.D.N. Y., New York City (Paul W. Williams, U. S. Atty., and Robert L. Tofel, Asst. U. S. Atty., New York City, on the brief), for respondent-appellee United States of America.

Before CLARK, Chief Judge, and L. HAND and HINCKS, Circuit Judges.

CLARK, Chief Judge.

The State of New York appeals from an order below in an action brought by the United States under I.R. C. § 7403, approving the sale of certain properties of New York, Ontario and Western Railway Company "free of all liens, including liens, claims to liens, and obligations accruing to any State, if any, arising out of the operation or ownership" of the railroad. For over twenty years this railroad has been in reorganization proceedings under...

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