IN RE PRUDENCE-BONDS CORPORATION

No. 376.

106 F.2d 44 (1939)

In re PRUDENCE-BONDS CORPORATION.

Circuit Court of Appeals, Second Circuit.

July 26, 1939.


Attorney(s) appearing for the Case

Larkin, Rathbone & Perry, of New York City (Henry E. Kelley, Theodore Pearson and W. Frederick Knecht, all of New York City, of counsel), for Central Hanover Bank & Trust Co.

Samuel Silbiger, of Brooklyn, N. Y., for appellant George E. Eddy.

Charles M. McCarty, of New York City, for appellant Prudence-Bonds Corporation (New Corporation).

Percival E. Jackson, of New York City (Percival E. Jackson and Milton Loewe, both of New York City, of counsel), for Prudence Securities Advisory Group.

George M. Jaffin and Leonard Klaber, both of New York City (Leonard Klaber and George M. Jaffin, both of New York City, and Harry Schneider, of Brooklyn, N. Y., of counsel), for Independent Prudence Bondholders' Protective Committee.

Milbank, Tweed & Hope, of New York City (Hugh L. M. Cole and W. Crosby Roper, Jr., both of New York City, of counsel), for Chase Nat. Bank of City of New York.

Maclay, Lyeth & Williams, of New York City, for President and Directors of Manhattan Co.

Sullivan & Cromwell, of New York City (J. M. Richardson Lyeth, Robert E. Houston, Jr., John P. Allee, and Arthur A. Burck, all of New York City, of counsel), for Marine Midland Trust Co. of New York.

Before SWAN, AUGUSTUS N. HAND, and PATTERSON, Circuit Judges.


PER CURIAM.

We are of opinion that the district court should have passed on the petitions for allowances to the corporate trustees and their attorneys at the same time that it passed on the other petitions for allowances. The objection that the corporate trustees had not yet accounted was not formidable; it could have been met by simply directing that payment of allowances to corporate trustees be withheld until conclusion of the accountings. As the situation stands...

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