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BANKRUPTCY AND REORGANIZATION
COMMITTEE ON THE JUDICIARY
H. R. 3704
SUBSEQUENTLY AMENDED AND REINTRODUCED AS
A BILL TO AMEND AN ACT ENTITLED "AN ACT TO
OF AND SUPPLEMENTARY THERETO
Luther M. Walter, general counsel, National Industrial Traffic
R. V. Fletcher, general counsel, Association of American Railroads_-
Hon. James E. Van Zandt, a Representative in Congress from the
Stanley R. Jacobs, New York.
A. B. Barber, manager of the Transportation and Communication
Letter from Hon. Jesse H. Jones, Chairman, Reconstruction Finance
Frank L. Mulholland, Toledo, Ohio, representing the Railway Em-
Thomas T. Tarleau, legislative counsel, office of the Secretary of the
Leslie Craven, Railway Security Owners' Association, savings banks,
Fred N. Oliver, representing the mutual savings banks.
Communication from the Treasury Department.
Communication from the Interstate Commerce Commission
Pat 7 4887 6633
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", 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
"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.
"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.