IN THE MATTER OF ATLAS SEWING CENTERS, INC., DEBTOR; JONES FINANCIAL CORPORATION, APPELLANT,

v.

IRWIN RAY, AS TRUSTEE IN BANKRUPTCY FOR ATLAS SEWING CENTERS, INC., APPELLEE; THE CHASE MANHATTAN BANK, APPELLANT, V. IRWIN RAY, AS TRUSTEE FOR ATLAS SEWING CENTERS, ETC., ET AL., APPELLEES; UNITED STATES OF AMERICA, APPELLANT, V. IRWIN RAY, APPELLEE; IRWIN RAY, TRUSTEE IN REORGANIZATION OF ATLAS SEWING CENTERS, INC., APPELLANT, V. JONES FINANCIAL CORPORATION, APPELLEE

PER CURIAM:

To expedite the complete disposition of this old Chapter X reorganization proceeding, we have grouped all of the above cases. As the issues in several are separable, we have had argument and make the determinations which follow.

No. 22852

Chase Bank

The appeal of Chase Manhattan Bank turns, in the final analysis, on whether the District Court yms required to classify and schedule separately the assets and liabilities of the Puerto Rican subsidiary. If so, it would in effect give to the Bank, an unsecured creditor, a priority almost as high as a secured creditor. If not, as, an unsecured creditor, the Bank takes its position with all others of that class.

Under this record showing that this nationwide sales organization, although made up of a parent and a large number of subsidiaries, actually carried on its activities as one large unit, the District Court did not err in its determination, implied if not expressed, to administer this reorganization estate with like approach. Additionally, the evidence showing four renewal notes at different rates of interest and executed formally by the parent, not the Puerto Rican subsidiary as in the case of the original note, was quite sufficient to permit the Court to conclude that the parent had been substituted as the real debtor. Likewise, the Court’s rejection of the Bank’s contention that this was a mistake is not clearly erroneous. F.R.Civ.P. 52(a).

The several orders appealed from by Chase are therefore

Affirmed.

No. 20936

Appeals of Jones Financial Corporation

By a series of orders this Court consolidated into No. 20936 the separate appeals by Jones Financial Corporation taken subsequent to the appeal of the order of September 18, 1963, which was the principal subject of No. 20936 These included the Jones appeal from the order of September 4, 1964, “Confirming the Plan” and the order of December 31, 1964, “In Aid of Consummation of Plan.” This Court likewise stayed the filing of the records, briefs, and submission of those appeals pending determination of the validity of the liens of Jones Financial Corporation (the subject of No. 24449).

The Court, in the course of the handling of the other matters in this complex interrelated litigation, has learned that the amounts ordered paid into the registry of the District Court under the Plan have actually been paid to or the benefits thereof accepted by Jones. Consequently we took submission of these cases as an order to show cause why the appeals should not be dismissed as moot.

Counsel for Jones with commendable candor do not oppose dismissal for mootness. But, with all propriety, they seek, in effect, to condition the acquiescence by insisting that it does not amount to an acquiescence in the correctness of the orders. Likewise, they seek to be free in subsequent proceedings winding up the reorganization to contend that the orders did not adequately protect the interests of Jones and that other and further relief should therefore be granted as necessary.

Under the circumstances the Court does not dismiss for mootness on counsel’s acquiescence. Rather, on the basis of the facts in the records of this Court in the several proceedings now pending before it under the captions listed above, the Court finds and holds that the appeals from these two orders are moot. The appeals are accordingly dismissed as moot. We add, however, that nothing herein done shall have any bearing upon the continued vitality of the appeal in No. 20936 with respect to the order of September 18, 1963, or the question whether there is or has been any order, valid or otherwise, upon which to base the charges or findings of civil or criminal contempt, or both. All such matters are expressly reserved for determination in the contempt proceedings.

No. 24449