Nos. 72-1292 to 72-1294 and 72-1305 to 72-1308.

477 F.2d 841 (1973)

In the Matter of PENN CENTRAL TRANSPORTATION COMPANY, Debtor. Appeal of BETHLEHEM STEEL CORPORATION, a Delaware corporation in No. 72-1292. Appeal of REPUBLIC STEEL CORPORATION, Cleveland, Ohio in No. 72-1293. Appeal of BLUEBIRD FOOD PRODUCTS COMPANY in No. 72-1294. Appeal of HARRY R. DEFLER CORPORATION in No. 72-1305. Appeal of UNITED STATES STEEL CORPORATION in No. 72-1306. Appeal of THOMAS J. HOLT CO., INC., in No. 72-1307. Appeal of MILLER LUMBER CO., INC., Montross, Virginia in No. 72-1308.

United States Court of Appeals, Third Circuit.

Decided April 27, 1973.

Attorney(s) appearing for the Case

W. Bradley Ward, Samuel D. Slade, Schnader, Harrison, Segal & Lewis, Philadelphia, Pa., for Bethlehem Steel Corp.

John S. Estey, William R. Dimeling, Montgomery, McCracken, Walker & Rhoads, Philadelphia, Pa., for Republic Steel Corp. and Miller Lumber.

Robert C. Cohen, Meltzer & Schiffrin, Philadelphia, Pa., for Blue Bird Food Products Co.

Henry T. Reath, Reeder R. Fox, Duane, Morris & Heckscher, Philadelphia, Pa., for H. R. Defler Corp. and U.S. Steel Corp.

Ned Stein, Comanor & Stein, Philadelphia, Pa., for Thomas J. Holt Co., Inc.

Marvin Comisky, Goncer M. Krestal, Blank, Rome, Klaus & Comisky, Paul R. Duke, Philadelphia, Pa., for appellee.

Before SEITZ, Chief Judge, ALDISERT, Circuit Judge, and LACEY, District Judge.


SEITZ, Chief Judge.

The basic issue presented on this appeal is whether a reorganization court in a § 77 proceeding has summary jurisdiction to enjoin a non-judicial set-off of claims for goods, services, and shipping losses and damages against freight charges, where such set-offs were effected prior to the Debtor's filing for reorganization.

The dispute arises out of a petition filed by the railroad trustees. The petition...


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