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IN RE LEHIGH VALLEY RAILROAD COMPANY

Nos. 74-1356, 74-1363, 74-1379, 74-1388 and 74-1424.

508 F.2d 332 (1975)

In the Matter of LEHIGH VALLEY RAILROAD COMPANY, Debtor. Appeal of COMMONWEALTH OF PENNSYLVANIA, in No. 74-1356. Appeal of TRUSTEES OF LEHIGH VALLEY RAILROAD COMPANY, Debtor, in No. 74-1363. Appeal of DELAWARE & HUDSON RAILWAY COMPANY, in No. 74-1379. Appeal of PENNSYLVANIA STATE LEGISLATIVE BOARD and United Transportation Union, in No. 74-1388. Appeal of CHEMICAL BANK et al., in No. 74-1424.

United States Court of Appeals, Third Circuit.

Decided January 23, 1975.

As Amended February 7, 1975.

Attorney(s) appearing for the Case

William R. Traub, Robert L. Pratter, Duane, Morris & Heckscher, Philadelphia, Pa., for Trustees of Lehigh Valley Railroad Company, Debtor.

John E. Hoffman, Jr., Matthew C. Gruskin, Shearman & Sterling, New York City, for Chemical Bank, The Fidelity Bank, First National City Bank and Girard Trust Bank, Indenture Trustees.

William P. Quinn, Strong, Barnett, Hayes & Quinn, Philadelphia, Pa., for Delaware & Hudson Railway Company.

Israel Packel, Atty. Gen., Harrisburg, Pa., Michael von Moschzisker, Deputy Atty. Gen., Philadelphia, Pa., Gordon P. MacDougall, Sp. Asst. Atty. Gen., Washington, D. C., for Commonwealth of Pennsylvania.

Thomas P. Shearer, Pittsburgh, Pa., for United Transportation Union.

Richard R. Bongartz, Westport Harbor, Mass., Terrence M. Quirin, Philadelphia, Pa., for Trustees of Penn Central Transportation Company, Debtor, Trustees.

Before ADAMS, GIBBONS and WEIS, Circuit Judges.

OPINION OF THE COURT

GIBBONS, Circuit Judge.

This is an appeal pursuant to 11 U.S.C. § 47 from Order No. 226 of the district court in proceedings under § 77 of the Bankruptcy Act for reorganization of the Lehigh Valley Railroad Company. The order, made as a result of a petition filed by the Trustees of Penn Central Transportation Company, directs the Lehigh Valley trustees to pay post-reorganization net interline balances due to Penn Central on...

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