Herring

A claim for compensation made by a creditor in a bankruptcy proceeding was disallowed, and the creditor appeals.

Kinner Airplane and Motor Corporation, Ltd.., engaged in the manufacture of airplane engines, borrowed $200,000 from the Reconstruction Finance Corporation, hereafter cabed appellant, as evidenced by a promissory note dated December 14, 1934, due in one year, which provided, among other things: “:|: * * The undersigned shall pay all expenses of any nature, whether incurred in or out of court, and whether incurred before or after this note shall become due at its maturity date or otherwise, including but not limited to reasonable attorney’s fees and costs, which the Payee may deem necessary or proper in connection with the satisfaction of the, undersigned’s indebtedness to it or the administration, supervision, preservation or protection of or the realization upon all collateral * * * ”

As security for the note, the company executed and delivered a chattel mortgage covering most, if not all, the company’s assets.

On December 2, 1937, the company filed its petition in the court below for reorganization. On May 13, 1938, the court fixed the time within which claims…