Common Stockholders' Committee.
This Committee, which was organized in October 1949, was composed of Edward I. Anfindsen, Paul Sicuro and Andrew Spring. They have requested an allowance of $ 20,000, which is likewise grossly excessive. They rendered nothing more than the usual routine service, and in our opinion they are entitled to nothing more than nominal compensation, to wit, $ 500. This Committee will therefore be granted an allowance of $ 500 and reimbursement for costs in the amount of $ 195.27.
W. C. Gilman and Company, professional engineers and security analysts, retained by the trustee, have requested an allowance of $ 4,000 for special services. Their services included: study and evaluation of domestic securities held by the trustee: survey of the physical conditions and operations of the mortgaged properties, as reflected in reports submitted by the Edison Company; study and evaluation of financial data submitted by the Edison Company; conferences with representatives of the Edison Company and others; compilation of data and preparation of reports, and attendance at hearings before this Court. It is conceded that these services were necessary.
The Securities and Exchange Commission has recommended an allowance of $ 1,750 and in this recommendation has given proper consideration to the allowances heretofore granted the petitioner. This recommendation will be followed and the petitioner will be granted an allowance of $ 1,750 and reimbursement for costs in the amount of $ 3.10.
Dr. Max Winkler, a competent economist and security analyst retained by the Bondholders' Committee, Series E, has requested an allowance of $ 3,500 for services rendered the Committee and in connection with the plan of reorganization. This request is embodied in the petition for allowances filed herein by the Committee, and it would appear therefrom that his claim for compensation is based upon services rendered since January 31, 1946. It should be noted that prior to that time the petitioner was a member of the Committee but resigned when he sold his bonds. There is no evidence that he traded in the securities of the debtor thereafter.
It is our opinion that the petitioner is entitled to compensation but only for the services rendered in connection with the plan of reorganization. There can be no doubt that these services were of direct benefit to the estate; the petitioner is an experienced analyst and his testimony at the hearings was informative and helpful. The petitioner will be granted an allowance of $ 750, which in our opinion is fair and reasonable compensation for the services rendered.
Angelo P. Serini, special attorney for the trustee, was retained by the Preferred Stockholders' Committee in February of 1950, and thereafter rendered special legal services for which compensation is here requested. It should be noted that he was not retained by the trustee until July of 1951, when it was determined that there was a need for the services of a lawyer of his competence and experience. It seems unnecessary to again summarize the nature of the services rendered by this petitioner, but it should be observed that his services to the Committee were advisory and necessarily limited; the services rendered the trustee were more comprehensive.
It is our opinion that the fair and reasonable value of the services rendered by this petitioner is $ 2,000, and that the necessary costs incurred, in the amount of $ 27.60, are properly reimbursable. The petitioner will therefore be granted an allowance in the total of these amounts.
Irving H. Isaacs, a competent economist and security analyst, was retained by the Preferred Stockholders' Committee and testified in these proceedings. There is some difference of opinion as to the value of his testimony, but it is generally conceded that he rendered a beneficial service in connection with the plan of reorganization. This petitioner will be granted an allowance of $ 750, which in our opinion is fair and reasonable compensation for the service rendered.
Albert W. Kimber, a competent security analyst, was retained by the Preferred Stockholders' Committee and testified in these proceedings. The service which he rendered was comparable to the service rendered by Mr. Isaacs. This petitioner will be granted an allowance of $ 500 and reimbursement for costs in the amount of $ 199.40.
Herbert E. Broadfoot, who testified in these proceedings on behalf of the Preferred Stockholders' Committee, has requested an allowance of $ 1,000 for services rendered. It was obvious from his testimony that he possessed neither the competence nor the experience necessary to qualify him as an expert witness. It is our opinion that he rendered no service in connection with the plan of reorganization and his petition for an allowance will therefore be denied.
Fairfield S. Perry, an employee of the Chase National Bank, has requested an allowance of $ 2,250 for services rendered the Preferred Stockholders' Committee. We are willing to assume that he rendered the services summarized in his petition for an allowance, but these services, insofar as we have been able to ascertain, were not in connection with the plan of the proceedings until he filed his petition for an allowance. The mere fact that this petitioner rendered services beneficial to the Committee will not support his claim for compensation against the estate of the debtor. The petition for an allowance will be denied.
A petition for an allowance has been filed herein by one Florence Pfeil, the widow and assignee of George Pfeil; she requests an allowance of $ 500. It appears from the said petition that George Pfeil, an attorney at law of New York, assisted the Preferred Stockholders' Committee and its attorney, W. Ludlow James, in 1941, 1942 and 1943; the services he rendered, however, were advisory in nature and limited. The petitioner will be granted a nominal allowance of $ 250. This allowance is consistent with the recommendation of the Securities and Exchange Commission.
The petitions for allowances filed herein by Bankers Trust Company, indenture trustee, and White and Case, its attorneys, will be made the subject of a separate memorandum.
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