Nos. 74-1493, 74-1494.

514 F.2d 325 (1975)

The PULLMAN COMPANY, Plaintiff-Appellant, v. The GREAT NORTHERN RAILWAY COMPANY and the Northern Pacific Railway Company, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided April 17, 1975.

Rehearing and Rehearing Denied May 21, 1975.

Attorney(s) appearing for the Case

Hamilton Smith, Chicago, Ill., for plaintiff-appellant.

James J. Flynn, Chicago, Ill., for defendants-appellees.

Before FAIRCHILD, Chief Judge, and SWYGERT and SPRECHER, Circuit Judges.

Rehearing and Rehearing En Banc Denied May 21, 1975.

SPRECHER, Circuit Judge.

The question presented by this appeal is whether separation payments made to terminated employees by The Pullman Company by reason of the cessation of its sleeping car operations constitute "operating expenses" to be borne by railroads which had contracted to use sleeping car service.


George M. Pullman organized the Pullman Palace Car Company in 1867, which built...

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