Keach v. New Brunswick Southern Railway Co.

Issue: Whether the “six months rule” — which grants a special priority to certain unsecured claims of creditors that provided goods or services necessary to a railroad’s operation, in reliance on payment out of the railroad’s current income, in the six months before the receivership — entitles unsecured claims for necessary operating expenses incurred by a railroad in the six months before bankruptcy to priority of payment if the railroad has not diverted any income away from the payment of such claims to pay secured creditors.