Forbes

Appellant Forbes seeks review of an order fixing his compensation and allowance for expenses in a corporate reorganization proceeding.

The American Mail Line, Limited, a Nevada corporation, debtor, owned 5 vessels. The United States Maritime Commission held mortgages of about $600,000 on four of them. A mortgage of about $200,000 was held by Admiral Oriental Line, which also held all the debtor’s stock. Debtor owed other lien creditors about $300,000 and unsecured creditors about $500,000. The debtor operated under a temporary subsidy from September, 1937, to June, 1938, and received about $475,000 in subsidies, but sustained a net loss for that period of $564,596.49. The debtor abandoned operations on August 12, 1938. Some attempts to reorganize were made prior to April 6, 1939, but to no avail.

Forbes believed a reorganization was feasible, and began work thereon on April 6, 1939, upon the understanding that he would get no compensation unless the reorganization was successful. He made several trips to the east, had many discussions with the Commission, and devoted his entire time to the reorganization from April 6, 1939, to November 1, 1939.

Under the plan of reorganization…

(concurring).

I concur in the judgment of affirmance on the ground that the trial court is not bound by the decision of the Special Master, particularly where, as here, additional evidence was introduced before the judge. I agree that the facts recited in the main opinion show that there was no abuse of discretion on the part of the trial court. (General Order in Bankruptcy No. 47, as amended January 16, 1939; 11 U.S.C.A., following section 53.)