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MATTER OF CHICAGO, R. I. & P. R. CO.

Nos. 76-1149 to 76-1151.

545 F.2d 1087 (1976)

In the Matter of CHICAGO, ROCK ISLAND AND PACIFIC RAILROAD COMPANY, Debtor. Appeal of Henry CROWN et al., Intervenors.

United States Court of Appeals, Seventh Circuit.

Decided December 2, 1976.

Attorney(s) appearing for the Case

Charles H. White, Jr., Interstate Commerce Commission, Washington, D.C., Samuel K. Skinner, U.S. Atty., John W. Rowe, Milton L. Fisher, Albert E. Jenner, Jr. and Robert L. Bombaugh, Daniel R. Murray, Chicago, Ill., for appellant.

Norman H. Nachman, Nicholas G. Manos, John J. Naughton, Chicago, Ill., for appellee.

Before FAIRCHILD, Chief Judge, and SWYGERT and SPRECHER, Circuit Judges.

SWYGERT, Circuit Judge.

This is an appeal from an order of the district court sitting in a railroad reorganization proceeding under Section 77 of the Bankruptcy Act, granting two petitions presented by the Trustee of the Debtor. The issue presented is whether the district court may, consistent with the Fifth Amendment and Section 77 of the Act, authorize the Trustee of a railroad in reorganization, pending submission of a plan, to incur long-term debt and lease obligations...

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