MATTER OF VALUATION PROCEEDINGS UNDER §§ 303(c) & 306

No. 76-1.

439 F.Supp. 1351 (1977)

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

Special Court, Regional Rail Reorganization Act.

On Motion for Reconsideration July 5, 1977.


Attorney(s) appearing for the Case

David B. Isbell, Washington, D. C. (Edwin M. Zimmerman, Jeffrey S. Berlin, Jeffrey G. Huvelle, and Covington & Burling, Washington, D. C., John B. Rossi, Philadelphia, Pa., of counsel), for Penn Central Trustees and certain affiliated transferors.

David C. Toomey, Philadelphia, Pa. (Jared I. Roberts, and Duane, Morris & Heckscher, Philadelphia, Pa., of counsel), for trustee of the Lehigh Valley R. Co.

Harry G. Silleck, Jr., New York City (John L. Altieri, Jr., and Mudge, Rose, Guthrie & Alexander, New York City, of counsel), for Trustees of Erie Lackawanna Ry. Co., and certain affiliated non-bankrupts.

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 R. Co. of New Jersey.

Louis A. Craco, New York City (Walter H. Brown, Jr., Thomas L. Bryan, Michael B. Targoff, Rebecca T. Halbrook, Richard L. Posen, 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.

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

Howard H. Lewis, James A. Sox, and Obermayer, Rebmann, Maxwell & Hippel, Philadelphia, Pa., Lockwood W. Fogg, Jr., Plymouth Meeting, Pa., for trustees of the Reading Co. and for its wholly-owned subsidiaries.

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

Joseph J. Connolly, and Goodman & Ewing, Herbert G. Schick, and Hepburn, Ross, Willcox & Putnam, Philadelphia, Pa., Jerome K. Walsh, and Walsh & Frisch, New York City, for secondary debtors of The Penn Central Transp. Co.

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

Perrin C. Hamilton, and Hamilton, Darmopray & Malloy, Philadelphia, Pa., for the East Pennsylvania R. Co.

Alan C. Kauffman, and Obermayer, Rebmann, Maxwell & Hippel, Philadelphia, Pa., for the Peoria and Eastern Ry. Co.

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

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

William T. Lake, and Louis R. Cohen, Washington, D. C. (Lloyd N. Cutler, William R. Perlik, David R. Johnson, and Wilmer, Cutler & Pickering, 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, Deputy Gen. Counsel, and Jordan Jay Hillman, Sp. Counsel, U. S. Ry. Ass'n, Washington, D. C., of counsel), for United States Ry. Ass'n.

Paul M. Tschirhart, Dept. of Justice, Washington, D. C. (Rex E. Lee, Asst. Atty. Gen., and John H. Broadley, Dept. of Justice, Washington, D. C., Donald T. Bliss, Deputy Gen. Counsel, Alexander P. Humphrey, and Justine Fischer, U. S. Dept. of Transp., Washington, D. C., of counsel), for United States of America.


FRIENDLY, Presiding Judge:

I. Introduction

Section 303(c)(1)(A) and (2) of the Regional Rail Reorganization Act of 1973 as amended (the Rail Act) directs this court to determine whether the transfers and conveyances which took place on April 1, 1976, were for a consideration more or less than the constitutional minimum1 "taking into consideration compensable unconstitutional...

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