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MATTER OF CHICAGO, ROCK ISLAND AND PACIFIC R. CO.

No. 85-2505.

794 F.2d 1182 (1986)

In the Matter of CHICAGO, ROCK ISLAND AND PACIFIC RAILROAD COMPANY, Debtor. Appeal of SANBORN COOPERATIVE GRAIN COMPANY, Appellant, Chicago Pacific Corporation, Appellee.

United States Court of Appeals, Seventh Circuit.

Decided June 24, 1986.

Attorney(s) appearing for the Case

Harold White, Fitzgibbons Brothers, Estherville, Iowa, for debtor.

Cynthia Bowman, Jenner & Block, Chicago, Ill., for Sanborn Corp.

Before POSNER and EASTERBROOK, Circuit Judges, and CAMPBELL, Senior District Judge.

EASTERBROOK, Circuit Judge.

The Rock Island line was a landlord as well as a railroad. It rented land on which the tenants built grain elevators, among other things. Many of these leases were terminable on 30 days' notice, which exposed the elevator operators to a risk: the Rock Island might cancel, acquire ownership of the elevators, and lease the land for a much higher rent reflecting the value of the elevators the tenants had built. (The tenants had 10 days after...

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