MATTER OF VAL. PROC., RAIL REORG. ACT

Misc. No. 76-1.

425 F.Supp. 266 (1976)

In the Matter of the VALUATION PROCEEDINGS UNDER §§ 303(c) AND 306 OF THE REGIONAL RAIL REORGANIZATION ACT.

Special Court, Regional Rail Reorganization Act.

Decided October 18, 1976.


Attorney(s) appearing for the Case

Edwin M. Zimmerman, Washington, D.C. (David B. Isbell, William D. Iverson, Stuart C. Stock, and Covington & Burling, Washington, D.C., Paul R. Duke, and John B. Rossi, Philadelphia, Pa., of counsel), for Penn Central Trustees and Certain Affiliated Transferors.

Louis A. Craco, New York City (Walter H. Brown, Jr., Thomas L. Bryan, Rebecca T. Halbrook, Richard L. Posen, Michael B. Targoff, and Willkie, Farr & Gallagher, New York City, Frederic L. Ballard, Sr., and Ballard, Spahr, Andrews & Ingersoll, Philadelphia, Pa., of counsel), for Intervening Penn Central Lienholders.

Stanley Weiss, Newark, N.J. (M. Elaine Jacoby, Dean R. May, and Carpenter, Bennett & Morrissey, Newark, N.J., of counsel), for Trustee of the Central Railroad Co. of New Jersey.

Morris Raker, Boston, Mass. (Joseph Auerbach, Thomas W. Armstrong, Harvey E. Bines, Thomas D. Halket, and Sullivan & Worcester, Boston, Mass., James Wm. Moore, New Haven, Conn., of counsel), for Trustee of The New York, New Haven and Hartford Railroad Co.

Howard H. Lewis, Philadelphia, Pa. (James A. Sox, Jeffrey B. Rotwitt, and Obermayer, Rebmann, Maxwell & Hippel, Philadelphia, Pa., Lockwood W. Fogg, Jr., Plymouth Meeting, Pa., of counsel), for Trustees of the Reading Co. and for Its Wholly-Owned Subsidiaries.

Charles I. Thompson, Jr., Philadelphia, Pa., for the North Pennsylvania R. Co., The Delaware and Bound Brook R. Co., Philadelphia, Germantown and Norristown R. Co., and Plymouth R. Co.

Jerome K. Walsh, New York City (Walsh & Frisch, New York City, Joseph J. Connolly, William H. Ewing, and Goodman & Ewing, Philadelphia, Pa., Herbert G. Schick, Mark Willcox, Jr., and Hepburn, Ross, Willcox & Putnam, Philadelphia, Pa., of counsel), for Secondary Debtors of The Penn Central Transportation Co.

Stephen Schachman, Philadelphia, Pa. (Alan C. Kauffman, and Obermayer, Rebmann, Maxwell & Hippel, Philadelphia, Pa., of counsel), for the Peoria and Eastern Railway Co.

William R. Traub, David C. Toomey, Jared I. Roberts, and Duane, Morris & Heckscher, Philadelphia, Pa., for Trustee of the Lehigh Valley R. Co.

Harry G. Silleck, Jr., John L. Altieri, Jr., and Mudge, Rose, Guthrie & Alexander, New York City, for Trustees of Erie Lackawanna Railway Co., and Certain Affiliated Non-Bankrupts.

Joseph J. Connolly, and Goodman & Ewing, Philadelphia, Pa., for Little Miami R. Co., and Ft. Wayne and Jackson R. Co.

Frank Buckhout McShane, and Walsh & Frisch, New York City, for The Mahoning Coal R. Co.

Steven R. Gross, Michael Patterson, and Debevoise, Plimpton, Lyons & Gates, New York City, Edward I. Dobin, and Curtin & Heefner, Morrisville, Pa., for Trustees for Pennsylvania Tunnel and Terminal R. Co., and Trustee for The New York Connecting R. Co.

Joseph S. Radom, and Thomas B. Radom, Detroit, Mich., for Trustee of the Ann Arbor R. Co.

Edmund J. Kenny, James E. Hussey, and Winston & Strawn, Chicago, Ill., for Trustee of the Chicago River and Indiana R. Co.

Perrin C. Hamilton, Philadelphia, Pa., for the East Pennsylvania R. Co.

Earl J. Krock, and Burgess, Fullmer, Parker, Steck & Andrews, Cleveland, Ohio, for The Kalamazoo, Allegan & Grand Rapids R. Co.

Timothy V. Smith, New York City, for Trustee of The Lehigh and Hudson River Railway Co.

George F. Galland, Robert W. Ginnane, and Galland, Kharasch, Calkins & Brown, Washington, D.C., for Norwich & Worcester R. Co.

Lloyd N. Cutler, William R. Perlik, Louis R. Cohen, Washington, D.C. (William T. Lake, Cary B. Lerman, David R. Johnson, Edward T. Hand, and Wilmer, Cutler & Pickering, Washington, D.C., Kevin P. Charles, Robert H. Kapp, Howard R. Moskof, George W. Mayo, Jr., and Hogan & Hartson, Washington, D.C., Cary W. Dickieson, Gen. Counsel, Stephen C. Rogers, Asst. Gen. Counsel, and Jordan Jay Hillman, Sp. Counsel, United States Railway Ass'n, Washington, D.C., of counsel), for United States Railway Assn.

Rex E. Lee, Asst. Atty. Gen., Paul M. Tschirhart, and John H. Broadley, Dept. of Justice, Washington, D.C., Donald T. Bliss, Jr., Deputy Gen. Counsel, Alexander P. Humphrey, Justine Fischer, Philip J. Ward, and James I. Singer, U.S. Dept. of Transp., Washington, D.C., for United States of America.

John G. Harkins, Jr., Laurence Z. Shiekman, and Pepper, Hamilton & Scheetz, Philadelphia, Pa., for Consolidated Rail Corp.

Before FRIENDLY, Presiding Judge, and WISDOM and THOMSEN, Judges.


OPINION WITH RESPECT TO ISSUES SET FOR BRIEFING AND ARGUMENT AS SUBJECTS (1) AND (2) OF SCHEDULE ATTACHED TO MEMORANDUM AND ORDER OF JUNE 16, 1976

FRIENDLY, Presiding Judge:

In our Memorandum and Order of June 16, 1976 (hereafter "June 16 Memorandum"), a copy of which is appended to this opinion as an addendum, issued after we had received statements of position from the parties and answers thereto, we sought to identify certain issues of principle early determination...

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