In the Matter of Harry Smith MacHine Company, a California Corporation, Debtor, Samuel A. Miller and Mason & Wallace

This appeal arises out of proceedings initiated on March 10, 1954, by Harry Smith Machine Company, a California corporation, (hereinafter “the debtor”), when it filed its original petition for relief under Chapter XI of the Bankruptcy Act of 1938, as amended.

On March 23, 1954, pursuant to petition of the debtor, the referee appointed Samuel A. Miller and Mason & Wallace (hereinafter “appellants”), attorneys for the debtor in possession, the order providing that the appointment of appellants was under a general retainer and that, they should be compensated for their services out of the estate of the debtor. A few days after their appointment, appellants filed on behalf of the debtor a petition for an arrangement under Section 322 of the Act. According to the plan set forth in this petition, all-debts which have priority under Section 64, sub. a(l), (2), and (4) of the Act would be paid in cash in full upon the signing of an order confirming the plan or, in the case of tax claims, in such installments as might be agreed upon between the debtor and the various taxing-agencies concerned. As to unsecured-debts, the plan proposed that the unsecured creditors accept as full payment,…