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PHILADELPHIA CO. V. DIPPLE, 312 U. S. 168 (1941)

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U.S. Supreme Court

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

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. 312 U. S. 175.

2. Pending affirmation or rejection of the leases and operating agreements by the trustees, their obligation was to pay only a reasonable chanroblesvirtualawlibrary

Page 312 U. S. 169

amount for use and occupation, not in excess of the net earnings derived from the operation of each property. P. 312 U. S. 174.

111 F.2d 932 affirmed.





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