IN RE PENN CENTRAL TRANSPORTATION COMPANY

Nos. 70-347, 70-347-A to 70-347-O.

382 F.Supp. 821 (1974)

In the Matter of PENN CENTRAL TRANSPORTATION COMPANY, Debtor. In re The UNITED NEW JERSEY RAILROAD AND CANAL CO., Secondary Debtor. In re BEECH CREEK RAILROAD COMPANY, Secondary Debtor. In re The CLEVELAND, CINCINNATI, CHICAGO & ST. LOUIS RAILWAY COMPANY, Secondary Debtor. In re The CLEVELAND & PITTSBURGH RAILROAD COMPANY, Secondary Debtor. In re The CONNECTING RAILWAY COMPANY, Secondary Debtor. In re The DELAWARE RAILROAD COMPANY, Secondary Debtor. In re ERIE AND PITTSBURGH RAILROAD COMPANY, Secondary Debtor. In re The MICHIGAN CENTRAL RAILROAD, Secondary Debtor. In re The NORTHERN CENTRAL RAILWAY COMPANY, Secondary Debtor. In re PENNDEL COMPANY, Secondary Debtor. In re The PHILADELPHIA, BALTIMORE & WASHINGTON RAILROAD COMPANY, Secondary Debtor. In re The PHILADELPHIA & TRENTON RAILROAD COMPANY, Secondary Debtor. In re The PITTSBURGH, YOUNGSTOWN AND ASHTABULA RAILWAY COMPANY, Secondary Debtor. In re PITTSBURGH, FORT WAYNE AND CHICAGO RAILWAY COMPANY, Secondary Debtor. In re UNION RAILROAD COMPANY OF BALTIMORE, Secondary Debtor. In re Proceedings Pursuant to § 207(B) of the REGIONAL RAIL REORGANIZATION ACT OF 1973.

United States District Court, E. D. Pennsylvania.

May 2, 1974.


Attorney(s) appearing for the Case

Robert Lipkin, Carl Helmetag, Jr., and John DePodesta, Covington & Burling by W. Crosby Roper, Jr., Philadelphia, Pa., for the trustees Penn Central Transportation Co.

Walsh & Frisch by E. Roger Frisch, New York City, for George Betz, trustee of the properties of Beech Creek Railroad Co., Erie & Pittsburgh Railway Co., and Penndel Co., and Albert B. Huttig, trustee of the property of Cleveland, Cincinnati, Chicago & St. Louis Railway Co.

Proskauer, Rose, Goetz & Mendelsohn by Philip M. Hahn and Howard Lefkowitz, New York City, for The Bank of New York, as indenture trustee.

Kirkland & Ellis, by Cornelius J. Harrington, Jr., Chicago, Ill., Sp. Counsel for Albert B. Huttig, trustee of the Cleveland, Cincinnati, Chicago & St. Louis Railway Co., secondary debtor.

Chatz, Sugarman & Abrams, by Nicholas G. Dozoryst, II, Chicago, Ill., for American Nat. Bank & Trust Co. of Chicago.

White & Case, by Donald M. Wilkinson, Robert L. Clare, III, and Edmond Gregorian, New York City, for Bankers Trust Co., as indenture trustee.

Jerome E. Sharfman and Stuart G. Meister, Washington, D.C. for the United States and U.S. Dept. of Transportation.

MacCoy, Evans & Lewis, by Herbert G. Schick, Philadelphia, Pa., for Pittsburgh, Youngstown & Ashtabula Railway Co., and Michigan Central Railroad Co.

Richards, Layton & Finger by Richard G. Elliott, Jr., Wilmington, Del. for Wilmington Trust Co.

Sharon, Pierson, Semmes, Crolius & Finley by Ross Hamachek, Washington, D.C., for Pennsylvania Co.

Walsh & Frisch by Jerome K. Walsh, New York City, for Pittsburgh, Fort Wayne & Chicago Railway Co., and Cleveland & Pittsburgh Railroad Co.

Robert S. Grodinsky, Philadelphia, Pa., for minority stockholders of Cleveland & Pittsburgh Railroad Co.

Ballard, Spahr, Andrews & Ingersoll by Alan Fellheimer, Philadelphia, Pa., for Girard Trust Bank, indenture trustee.

Fox, Rothschild, O'Brien & Frankel by Nochem S. Winnet, Philadelphia, Pa., for First Nat. City Bank of New York.

Ewing & Cohen by William H. Ewing, Philadelphia, Pa., and Mitchell L. Bach, for The United New Jersey Railroad & Canal Co., Connecting Ry. Co., Philadelphia, Baltimore & Washington Railroad Co. and Delaware Railroad Co.

Morgan, Lewis & Bockius by John N. Schaeffer, Jr., Philadelphia, Pa., for Fidelity Bank, indenture trustee.

Reed, Smith, Shaw & McClay by Andrew N. Farley, Pittsburgh, Pa., for Mellon Bank, N. A.

Ewing & Cohen by William H. Ewing for secondary debtors Philadelphia, Pa., and the Connecting Ry. Co.

Morgan, Lewis & Bockius by Edward B. Cloues, II, Philadelphia, Pa., for Manufacturers Hanover Trust Co.

MacCoy, Evans & Lewis, by Mark Willcox, Jr., and Herbert G. Schick, Philadelphia, Pa., for The Philadelphia & Trenton Railroad Co., Union Railroad Co. of Baltimore, and The Northern Central Railroad Co.

Leroy D. Touchton, Delran, N.J., for the State of New Jersey.


MEMORANDUM

FULLAM, District Judge.

Section 207(b) of the Regional Rail Reorganization Act of 1973 (hereinafter "the Act") directs that certain findings be made in each pending railroad reorganization proceeding in the Midwest and Northeast. Application of the Act to the proceedings of the Secondary Debtors poses many legal and factual problems. In large measure, these problems are common to all of the Secondary Debtors, and can conveniently be considered...

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