In re Boston & Providence Railroad (428 F.2d 159, 1970)

McENTEE, Circuit Judge.

This is another episode in the protracted litigation concerning the reorganization of the Boston & Providence Railroad. Commenced in 1938, the reorganization appears to be drawing to a close with our recent affirmance of the district court’s confirmation of a plan. In re Boston & Providence R.R., 413 F.2d 137 (1st Cir. 1969), cert. denied, Boston & Providence R.R. Development Group v. Bartlett, 397 U.S. 979, 90 S.Ct. 1103, 25 L.Ed.2d 390 (1970). Now before us are cross-appeals from certain aspects of the district court’s judgment allowing expenses and counsel fees under § 77 (c) (12) of the Bankruptcy Act, 11 U.S. C. § 205(c) (12) (1964). In No. 7575 the trustee of the New York, New Haven & Hartford Railroad, who under the terms of the plan of reorganization will succeed to assets of the B & P remaining after the payment of expenses and fees, appeals from allowances to the Boston & Providence Stockholders Development Group an(j its attorneys, claiming none were warranted as a matter of law. In No. 7597 Joseph B. Hyman, one of the Development Group attorneys, appeals from the same judgment, contending that the allowance to. him was inadequate.

In 1966 the Development Group and its attorneys submitted petitions for reimbursement and allowances to the district court for the period between January 1954 and June 1966. Acting under § 77(c) (12), the court referred the petitions to the Interstate Commerce Commission for determination of maximum limits in accordance with the statute. Extensive hearings were held and a report and order were issued by Jhci" Commission’s examiner in December 1967. The Commission modified the examiner’s decision, generally raising the limiíts' áet, in July 1968. Boston & P.R.R. Corp. Reorganization, 331 I.C.C. 614. In December 1969, the district court ;hei