Business: 77-B Out?

Since President Roosevelt signed the corporate reorganization amendment to the Bankruptcy Act in 1934, Section 77-B has become a highly popular resort for embarrassed U. S. corporations. So many companies have crowded into court that bankruptcy now has its own trade publication, Corporate Reorganizations.

To businessmen and lawyers, therefore, it was a shock last week to see headlines proclaiming that part of 77-B had been held unconstitutional in Cincinnati by a U. S. Circuit Court of Appeals.

Case concerned Tennessee Publishing Co. (Nashville Tennesseean). Before he went to jail and the company went into...

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