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We assure you that we will especially watch the Commission's conduct in pending and future railroad reorganization cases. With that admonition and kindly word my questions are through.

I want to thank you for your courtesy and willingness to answer all questions. I think you answered them as frankly as you can. Some of them are buttressed by facts which you secured for me. Now will you go ahead.

Mr. MAHAFFIE. I have nothing further. You have very graciously permitted me to call attention to the fact that starting with the Denver & Rio Grande, where what a junior creditor received in reorganization is now the most junior creditor-worth only 8 percent of his claim. And through the whole list the only one where a creditor is even now substantially whole is, as I said, the Gulf, Mobile & Ohio. In some cases the percentage is around 10, 20, 60, and so on.

Senator TOBEY. What has become of the old Norfolk & Southern road?

Mr. MAHAFFIE. It was reorganized in receivership perhaps 10 or 12 years ago, and has been operating since under the new management. Senator TOBEY. The Ontario & Western is a total loss, is it not? Mr. MAHAFFIE. It is substantially. Very recently a tentative sale of that property has been made to new interests. The trustee called on me sometime ago with some of the other representatives. They hope to rehabilitate it.

Senator TOBEY. It has been a terrible disappointment over the years. Mr. MAHAFFIE. The creditors, stockholders, everybody concerned has suffered. The creditors will be out in that case, practically. They will get very little for their bonds.

Senator TOBEY. What is the present status of the Boston & Maine reorganization?

Mr. MAHAFFIE. It is. pending hearing.

Senator TOBEY. Has a date been assigned as yet?

Mr. MAHAFFIE. A date has not been assigned. Yesterday counsel for the Boston & Maine, and representatives of the protestants and of some other parties, came to see me about a possible compromise which would terminate the litigation. Whether they will work it out I do not know. In the meantime apparently no one is anxious to go ahead with the hearing. That was only yesterday.

Senator TOBEY. I just asked because of the local color and local interest up there. I knew it would come first-hand. That concludes my questioning. Thank you.

(Whereupon, at 9: 40 a. m., the meeting was adjourned.)

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HEARING

BEFORE THE

SUBCOMMITTEE ON

MERCHANT MARINE AND MARITIME MATTERS

OF THE

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

UNITED STATES SENATE

EIGHTY-SECOND CONGRESS

SECOND SESSION

ON

SAFETY OF LIFE AND PROPERTY AT SEA-TO INVESTI-
GATE THE RECENT MARITIME DISASTERS AND TO
RECEIVE EVIDENCE AND RECOMMENDATIONS
FOR THE IMPROVEMENT OF OUR

SAFETY-AT-SEA STANDARDS

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