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IN RE NEW YORK, NEW HAVEN AND HARTFORD RAILROAD CO.

Nos. 690, 691, Dockets 71-2101, 72-1009.

479 F.2d 8 (1973)

In the Matter of the NEW YORK, NEW HAVEN AND HARTFORD RAILROAD COMPANY, Debtor.

United States Court of Appeals, Second Circuit.

Decided May 10, 1973.

Attorney(s) appearing for the Case

Manny H. Smith, Atty., I. C. C., Washington, D. C. (Harlington Wood, Jr., Asst. Atty. Gen., Irwin Goldbloom, Sp. Litigation Counsel, James F. Dausch, Atty., Dept. of Justice, Washington, D. C., Fritz R. Kahn, Gen. Counsel, Leonard S. Goodman, Associate Gen. Counsel, I. C. C., Washington, D. C., on the brief), for appellants United States and Interstate Commerce Comm.

Joseph Auerbach, Boston, Mass. (James Wm. Moore, Joseph W. Bishop, Jr., New Haven, Conn., Sullivan & Worcester, Nancy F. Gans, Boston, Mass., on the brief), for appellee Richard Joyce Smith, Trustee of the Property of the New York, New Haven & Hartford Railroad Co., Debtor.

Before BREITENSTEIN, KAUFMAN and MANSFIELD, Circuit Judges.

IRVING R. KAUFMAN, Circuit Judge:

This appeal involves a skirmish in the larger and seemingly endless battle of the bankrupt New York, New Haven and Hartford Railroad ("New Haven") and the bankrupt Penn Central Transportation Co. ("Penn Central") to achieve a workable long-term solution to their financial problems. We are asked to enter the fray and interpret § 77(c)(2) of the Bankruptcy Act, 11 U.S.C. § 205(c)(2), which provides, in pertinent part, that...

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