Philadelphia Co. v. Dipple, 312 U.S. 168 (1941)

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Philadelphia Company v. Dipple


Nos. 242 and 243


Argued January 8, 9, 1941
Decided February 3, 1941
312 U.S. 168

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE THIRD CIRCUIT

1. The trustees of a debtor street railway company in a reorganization proceeding under § 77B (now Chapter X) of the Bankruptcy Act, are not required by the Act of June 18, 1934, to pay, out of the estate of the debtor, taxes owed by corporations whose properties the debtor operated -- together with its own in a unified system -- under leases and operating agreements, and which the trustees continued to operate. P. 175.

2. Pending affirmation or rejection of the leases and operating agreements by the trustees, their obligation was to pay only a reasonable amount for use and occupation, not in excess of the net earnings derived from the operation of each property. P. 174.

111 F.2d 932 affirmed.

Certiorari, 311 U.S. 628, to review the reversal of an order directing the payment of certain taxes by the trustees in a reorganization proceeding under § 77B of the Bankruptcy Act. An appeal from the order of the District Court was taken by the Tort Creditors’ Committee and the City of Pittsburgh, respondents here. Petitioners here are the Philadelphia Company (principal creditor and owner of all the capital stock of the debtor Pittsburgh Railways Company) and certain underliers.