RAILROAD OBLIGATIONS HEARINGS BEFORE THE SUBCOMMITTEE ON BANKRUPTCY AND REORGANIZATION OF THE COMMITTEE ON THE JUDICIARY SEVENTY-SIXTH CONGRESS FIRST SESSION ON H. R. 3704 SUBSEQUENTLY AMENDED AND REINTRODUCED AS A BILL TO AMEND AN ACT ENTITLED "AN ACT TO THROUGHOUT THE UNITED STATES," APPROVED Statement by CONTENTS 16 Page 9 22, 86 Luther M. Walter, general counsel, National Industrial Traffic 27 R. V. Fletcher, general counsel, Association of American Railroads.. Hon. James E. Van Zandt, a Representative in Congress from the Frank L. Mulholland, Toledo, Ohio, representing the Railway Em- Stanley R. Jacobs, New York A. B. Barber, manager of the Transportation and Communication: Letter from Hon. Jesse H. Jones, Chairman, Reconstruction Finance 31 32 34 36 39 40 Statement by Thomas T. Tarleau, legislative counsel, office of the Secretary of the 41 Leslie Craven, Railway Security Owners' Association, savings banks, and insurance companies -- Fred N. Oliver, representing the mutual savings banks. Communication from the Treasury Department. Communication from the Interstate Commerce Commission. 43 57 79 82 III VOLUNTARY ADJUSTMENT OF RAILROAD OBLIGATIONS WEDNESDAY, MARCH 1, 1939 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE OF THE COMMITTEE ON THE JUDICIARY, Washington, D. C. The subcommittee met at 10 a. m., Hon. Hatton W. Sumners (chairman of the Judiciary Committee) presiding. The bill under consideration was H. R. 3704, the text of which is as follows: [H. R. 3704, 76th Cong., 1st sess.] A BILL To amend an Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States", approved July 1, 1898, and Acts amendatory thereof and supplementary thereto Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of July 1, 1898, entitled "An Act to establish a uniform system of bankruptcy throughout the United States", as amended, is hereby further amended by adding thereto a new chapter, to be designated chapter XV, and to read as follows: "CHAPTER XV-RAILROAD ADJUSTMENTS "ARTICLE I-JURISDICTION "SEC. 700. In addition to the jurisdiction otherwise exercised, courts of bankruptcy shall exercise original jurisdiction, as provided in this chapter, for postponements or modifications of debt, interest, rent, and maturities or modifications of the capital structures of railroads. "ARTICLE II-DEFINITIONS "SEC. 705. The following terms, as used in this chapter, unless a different meaning is plainly required by the context, shall be construed as follows: "(1) Petitioner' means any carrier as defined in section 20a of the Interstate Commerce Act, including any corporation in equity receivership, petitioning for a plan of adjustment, as hereinafter defined. "(2) Claims' includes debts whether liquidated or unliquidated, certificates of deposits of securities (other than stock and option warrants to subscribe to stock), including demands and obligations of whatever character made, assumed or guaranteed by the petitioner. (3) 'Debt' shall be considered to include all claims held or owned by 'creditors' as hereinafter defined. "(4) 'Creditors' shall include all holders of claims, demands, and obligations of whatever character against the petitioner or its property, whether or not such claims would otherwise constitute probable claims in bankruptcy, including the holders of claims made, assumed, or guaranteed by the petitioner. "(5) 'Securities' shall include those defined in section 20a of the Interstate Commerce Act, as amended, and also certificates of deposit and all other evidences of ownership of or interest in securities. "(6) 'Commission' refers to the Interstate Commerce Commission. (7) 'Adjustment' shall include postponements or modifications of debt, interest, rent, and maturities and modifications of the capital structures. "SEC. 706. No creditor shall be deemed to be 'affected' by any plan unless such plan proposes a modification of the evidence of debt or other instrument defining the rights of such creditor, or a modification of the security, if any, for the claim of such creditor. |