Webster & Atlas Nat. Bank v. Palmer

CLARK, Circuit Judge.

In October, 1935, the New Haven Railroad filed its petition for reorganization in the District Court of the United States for the District of Connecticut. In June, 1936, its trustees rejected the lease under which *217the New Haven had rented the lines of the Old Colony Railroad Company. Immediately thereafter, the Old Colony petitioned for reorganization in the same court and. the trustees of the New Haven were appointed trustees of the Old Colony. Since the Old Colony was wholly unable to operate its lines alone, the district judge, pursuant to the mandate of Bankruptcy…