266 F.2d 862 (2nd Cir. 1959), 263, Surface Transit, Inc. v. Saxe, Bacon & O'Shea

Docket Nº:263, 25474.
Citation:266 F.2d 862
Party Name:SURFACE TRANSIT, INC., et al., Appellants, v. SAXE, BACON & O'SHEA et al., Appellees. In re Allowances in ESTATE of THIRD AVENUE TRANSIT CORPORATION, Debtor.
Case Date:May 11, 1959
Court:United States Courts of Appeals, Court of Appeals for the Second Circuit
 
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Page 862

266 F.2d 862 (2nd Cir. 1959)

SURFACE TRANSIT, INC., et al., Appellants,

v.

SAXE, BACON & O'SHEA et al., Appellees.

In re Allowances in ESTATE of THIRD AVENUE TRANSIT CORPORATION, Debtor.

Nos. 263, 25474.

United States Court of Appeals, Second Circuit.

May 11, 1959

Argued April 15, 1959.

Page 863

John A. Wilson, of Shearman & Sterling & Wright, New York City (sW.M.L. Robinson, of Shearman & Sterling & Wright, New York City, on the brief), for appellants Surface Transit, Inc., Westchester Street Transportation Co., Inc., and Warontas Press, Inc., the Reorganized Companies.

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Abe Fortas, of Arnold, Fortas & Porter, Washington, D.C. (Abe Krash, of Arnold, Fortas & Porter, Washington, D.C., and Hiram S. Gans and Ernest Leff, New York City, on the brief), for appellant Hirma S. Gans.

Mortimer Brenner, of Lehman, Goldmark & Rohrlich, New York City (Jerome L. Abrams, of Lehman, Goldmark & Rohrlich, New York City, on the brief), for appellant I. Howard Lehman, Trustee.

James E. Freehill, New York City (James J. Geraghty, deceased, and Frederick G. Demarest, New York City, on the brief), for appellant Lester T. Doyle, Trustee.

Thomas G. Meeker, Gen. Counsel, and David Ferber, Asst. Gen. Counsel, Securities and Exchange Commission, Washington, D.C. (Richard V. Bandler, Special Counsel, and Harvey Frank, Atty., Regional Office, Securities and Exchange Commission, New York City, and Arthur Blasberg, J., and Peter H. Morrison, Attys., Securities and Exchange Commission, Washington, D.C., on the brief), for Securities and Exchange Commission.

Osmond K. Fraenkel, of Hays, St. John, Abramson & Heilbron, New York City (Morris Shilensky, of Hays, St. John, Abramson & Heilbron, New York City, on the brief), for appellants Hays, St. John, Abramson & Heilbron.

Thomas O'Gorman Fitzgibbon, of Davis, Polk, Wardwell, Sunderland & Kiendl, New York City (Saxe, Bacon & O'Shea and William A. Kaynor, of Davis, Polk, Wardwell, Sunderland & Kiendl, New York City, on the brief), for appellee Saxe, Bacon & O'Shea.

Edward M. Garlock, New York City, pro se.

Morton E. Yohalem and Harold P. Seligson, New York City, for appellees Amott Committee and its counsel Harold P. Seligson, Edmund Burke, Jr., and Morton E. Yohalem.

Arthur Karger, New York City, for appellee Estate of Robert Irving Lennox.

John Dwight Sullivan, of Murphy, Block, Sullivan & Sawyer, New York City (Daniel W. Blumenthal, Victor S. Gettner, and Mendel Lurie, New York City, on the brief), for appellees the O'Connell Committee and counsel.

Harold I. Meyerson, of Kresel & Meyerson, New York City, for appellees Charles B. Wiggin, Edward A. Boberts, E. Ralph Sterling, and Kresel & Meyerson.

Frank H. Heiss, of Kelley, Drye, Newhall & Maginnes, New York City (John J. Loflin, Jr., of Kelley, Drye, Newhall & Maginnes, New York City, on the brief), for appellees The Hanover Bank, Indenture Trustee, and Kelley, Drye, Newhall & Maginnes, counsel for the Hanover Bank.

William Mertens, New York City, pro se and counsel for appellee Tort Claimants Committee.

Dennis M. Hurley and Joseph E. Swierzbinski, New York City, for appellee Edward C. Maguire, Special Counsel to Trustees.

Charles Poletti, New York City, Edmund B. Hennefeld, of Hoffman, Buchwald, Nadel, Cohen & Hoffman, and Buchman & Buchman, New York City, for appellees Charles Poletti, Hoffman, Buchwald, Nadel, Cohen & Hoffman, and Buchman & Buchman.

Sidney R. Nussenfeld and Wagner, Quillinan & Tennant, New York City, for appellee Wagner, Quillinan & Tennant.

Oscar S. Rosner and Abraham Altus, of Baker, Obermeier & Rosner, New York City, for appellee Baker, Obermeier & Rosner, co-counsel for Tinker Committee.

Before CLARK, Chief Judge, and SWAN and MOORE, Circuit Judges.

CLARK, Chief Judge.

This is the final round in the Chapter X reorganization of the Third Avenue Transit Corporation, a common carrier of passengers, and its subsidiaries instituted by the filing of an involuntary petition on October 25, 1948. The debtor at

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that time was enmeshed in what seemed to be insoluble problems involving limitations on the fares it could charge, heavy wage demands of its employees, and franchise tax demands of New York City. The parties to this appeal are in near unanimity that the reorganization was unusually successful in achieving a workable solution of these problems and in creating reorganized companies of considerable financial strength. 1 Amidst this genuine glow of success it is indeed difficult for any court or agency dispassionately to evaluate the several applications for compensation filed below. For nearly all the participants richly merit the heartfelt thanks of the court and the public, as well as those of the particular group or interest their efforts may have...

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