MATTER OF CHICAGO, MILWAUKEE, ST. PAUL & PAC. R.

No. 91-1158.

961 F.2d 1260 (1992)

In the Matter of CHICAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD COMPANY, Debtor. Appeal of UNITED STATES of America.

United States Court of Appeals, Seventh Circuit.

Decided April 13, 1992.


Attorney(s) appearing for the Case

Gary R. Allen, David I. Pincus, Teresa T. Milton (argued), and Benjamin Norris, Dept. of Justice, Tax Div. Appellate Section, Washington, D.C., for the U.S. appellant.

Daniel R. Murray, Randall E. Mehrberg, Jerold S. Solovy, and Barry Sullivan (argued), Jenner & Block, Chicago, Ill., for CMC Real Estate Corporation, appellee.

James B. Burns, Edward R. Gower, Keck, Mahin & Cate; Daniel R. Murray, Randall E. Mehrberg, Jerold S. Solovy, Barry Sullivan, Terrence J. Truax, Jenner & Block, Chicago, Ill.; Charles Stark, I.C.C., Office of the Gen. Counsel, Washington, D.C.; Milton H. Gray, Altheimer & Gray; James T. Malysiak, Freeman, Freeman & Salzman; Terry F. Moritz, Goldberg, Kohn, Bell, Black, Rosenbloom & Moritz; Marvin F. Metge, F. Rausch, Gorham, Metge, Bowman & Hourigan, Chicago, Ill.; William G. Mahoney, Highsaw, Mahoney & Clarke, Washington, D.C.; Carlton G. Salmons, Austin & Gaudineer, Des Moines, Iowa; J.S. Thiel, Dept. of Transp., Madison, Wis.; Patrick J. McPartland, Minneapolis, Minn.; Lynn A. Goldstein, First Nat. Bank of Chicago; and Harold L. Kaplan, Mayer, Brown & Platt, Chicago, Ill., for Chicago, Milwaukee, St. Paul and Pacific R. Co., debtor.

Before CUDAHY, POSNER and COFFEY, Circuit Judges.


CUDAHY, Circuit Judge.

After reorganization, the Chicago, Milwaukee, St. Paul & Pacific Railroad Company (the Milwaukee Road1) owed the federal government $3.9 million in back taxes and interest. It tried to pay in September 1985, but the Government refused to acknowledge the offer. In August 1990, the Government finally asked for its money. The Milwaukee Road paid up immediately. Now the Government wants interest on the

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