United States v. 1.94 Acres of Land, More or Less
| Decision Date | 07 August 1943 |
| Docket Number | No. 1137.,1137. |
| Citation | 51 F. Supp. 162 |
| Parties | UNITED STATES v. 1.94 ACRES OF LAND, MORE OR LESS, et al. |
| Court | U.S. District Court — Western District of Pennsylvania |
Frederick V. Follmer, U. S. Atty., of Scranton, Pa., and Herman F. Reich, Asst. U. S. Atty., of Sunbury, Pa., for the United States.
Harry S. Knight (of Knight & Kivko), and J. P. Carpenter (of Carpenter & Carpenter), both of Sunbury, Pa., for the trustee.
Clarence P. Wynne, of Scranton, Pa., trustee of Moorhead Knitting Co., Inc.
F. Brewster Wickersham and Oscar Wickersham, both of Harrisburg, Pa., for bondholders protective committee.
Paul L. Hutchison, of Harrisburg, Pa., for committee of preferred stockholders.
Samuel Wilson, of Harrisburg, Pa., for debenture holders committee and common creditors.
Robert Rosenberg, of Harrisburg, Pa., for creditors.
This is a condemnation proceeding by the United States of America against a certain improved parcel of land held by a trustee in bankruptcy during reorganization under Chapter X of the Bankruptcy Laws. 11 U.S.C.A. § 501 et seq.
The facts are as follows: The Moorhead Knitting Company, Inc., on the 19th day of June, 1941, filed in this Court its petition under the Bankruptcy Laws to No. 10280 in Bankruptcy, praying for reorganization under Chapter X of the said Bankruptcy Laws.
The Bankruptcy Court thereupon acquired and assumed jurisdiction of all the property, assets, and estate of the said Moorhead Knitting Company, Inc., and appointed, on the 24th day of June, 1941, Clarence P. Wynne, as trustee in bankruptcy to administer said estate with direction and authority to proceed to reorganize said corporation, under, by virtue of, and subject to Chapter X of the said Bankruptcy Statutes of the United States of America and under the direction and control of the Court. The trustee accepted said trust and was duly qualified and is acting under said appointment.
Under the said order of court a reorganization plan, within the terms and scope of the reorganization statutes, was presented to the Court by the trustee, and after hearing before a special master it was recommended for approval. After several minor amendments, the court subsequently referred said reorganization plan back to the special master, for approval by the creditors and parties in interest.
The said plan of reorganization contemplates and recommends that the said real estate be sold and the proceeds of said sale, with all other assets, be distributed amongst the corporation's creditors to pay and discharge its debts, including costs of administration.
The said property is now in the custody of the Court, under said plan, through its duly appointed administrative officer, Clarence P. Wynne, trustee, to complete the administration of the said estate in due form and orderly sequence in obedience to the mandates of said Chapter X of the said Bankrupt Laws.
The United States Government, the plaintiff herein, by and through a legally constituted departmental head submitted to this Court, in said bankruptcy proceeding, No. 10280 in bankruptcy, a proposed lease for a parcel of real property for the approval of the trustee, and the Court. Thereupon, the trustee presented a petition to the Court for the approval of the said proposed lease which was presented by the Government, and after due hearing, in open Court, of all parties in interest, including departmental Government representatives in support thereof, the Court decreed, inter alia, "Now February 3, 1943, it is ordered and decreed that the petition this day filed, wherein the Trustee requests authorization to enter into a lease with the United States War Department for the property of the above debtor, located at the corner of Walnut and Cameron Streets in the City of Harrisburg, Pennsylvania, is hereby refused."
On February 13, 1943, the United States of America upon petition of Frederick V. Follmer, United States Attorney in and for the Middle District of Pennsylvania, presented a petition, on the part of the United States of America to Civil Docket Number 1137, in the said District Court under the eminent domain statutes, for the condemnation of the property described in the formerly proffered lease, and requested the appointment of viewers for the purpose of assessing damages for the taking of the property, and the Court thereupon entered a peremptory order authorizing the Secretary of War of the United States of America to take immediate possession of the land bought to be condemned, giving to petitioner also the right to use and occupy the lands for a term ending June 30, 1943, and for such additional yearly periods during the present emergency as may, at the election of the Secretary of War, signified by the giving of sixty days' notice prior to the end of the original or any subsequent terms, be required, together with and including all buildings and improvements thereon and appurtenances thereunto belonging; and also authorizing immediate entrance and the taking of full possession of said lands and appurtenances with the right to occupy, use, and improve the same, and the right to proceed with such public works thereon as have been authorized by law and as are set forth in the petition for condemnation. The order was made returnable for Monday, March 29, 1943, at 10 o'clock A. M., and subsequently continued to May 5, 1943, at 2 P. M.
The trustee filed a demurrer to said petition and order and moved for the dismissal and discharge of said petition and order, also a petition for a rule praying for the following relief:
1. "That the Court issue a rule to show cause why the order upon said petition of the United States Government, filed to No. 1137, Civil, praying for the condemnation of the real estate therein described, late the property of Moorhead Knitting Company, Inc., and now in the possession and control of the United States Court for the Middle District of Pennsylvania, to No. 10280 In Bankruptcy, and being administered by Clarence P. Wynne, Trustee, under the control of said Court, and all proceedings thereon should not be vacated and set aside, and the possession and custody of said real estate be returned to Clarence P. Wynne, Trustee as aforesaid.
2. "That a place, day and time be fixed for hearing upon said petition and respondent's answer and thereupon a determination of the allegations and representations therein contained and the questions raised.
3. "That the Court thereupon dismiss the said petition filed by the United States Government to No. 1137 Civil, and that all proceedings thereunder be set aside and discharged, and the possession and custody of said estate be returned to Clarence P. Wynne, Trustee as aforesaid."
A rule was thereupon granted, returnable March 29, 1943, at 2 o'clock P. M. The hearing of said rule and demurrer at the instance of the Government was continued to April 19 at 10 o'clock A. M. and subsequently to May 5, 1943, at 2 P. M.
By answer and joinder thereafter filed, the Bondholders Protective Committee of the Moorhead Knitting Company, Inc., bankrupt; the Preferred Stockholders Protective Committee of the Moorhead Knitting Company, Inc., bankrupt; the Debenture Holders Protective Committee of the Moorhead Knitting Company, Inc., bankrupt, attempted to become parties to the proceeding under the rule to show cause above set forth, and subsequently the United States of America moved to...
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