United States Supreme Court Cases & Opinions

U.S. Supreme Court

Palmer v. Massachusetts, 308 U.S. 79 (1939)

Palmer v. Massachusetts

No. 7

Argued October 11, 1939

Decided November 6, 1939

308 U.S. 79

Syllabus

1. Creditors of a railroad, debtor in a reorganization proceeding under § 77 of the Bankruptcy Act, petitioned the District Court for an order directing the reorganization trustees to discontinue certain local transportation service. The trustees had previously applied to the state commission for authority to discontinue the same service, which application accorded with requirements of the state law and was then pending and being given orderly hearing and consideration. Held, the District Court was without power to order discontinuance of the service. P. 308 U. S. 88.

2. In the light of the history of the legislation, such power in the District Court may not be implied from § 77(a), granting to the bankruptcy court "exclusive jurisdiction of the debtor and its property wherever located," or § 77(c)(2), permitting the trustees, subject to the control of the court, "to operate the business of the debtor." P. 308 U. S. 85.

101 F.2d 48 affirmed.

Certiorari, 306 U.S. 627, to review the reversal of an order of the District Court authorizing the trustees of a railroad in reorganization proceedings to discontinue certain local transportation service.

Page 308 U. S. 81