Page:United States Statutes at Large Volume 47 Part 1.djvu/1501

 72d CONGRESS. SESS. II. CH. 204. MARCH 3, 1933 . such master a reasonable compensation for his services. The Circuit Court of Appeals of each circuit shall designate three or more mem- bers of the bar as such special masters whom they deem qualified for such services, and shall from time to time revise such designations by changing the persons designated or reducing or adding to their numbe r, as the p ublic inte rest m ay re quire : Provided, however, That there shall always be three of such special masters qualified for appointment in each circuit who shall in their respective circuits hear any matter referred to them under this section by a judge of any District Court. For all purposes of this section claims against a railroad corporation which would have been entitled to priority over existing mortgages if a receiver in equity of the property of the debtor had been appointed by a Federal court at the date of the filing of the petition hereunder shall be entitled to such priority, and holders of such claims shall be treated as a separate class of creditors. If in any case in which the issues have not already been tried under the provisions of subdivision (a) of this section any of the debtor's creditors shall, prior to the he aring provided f or in subdivision (c ), clause (2), of this section, appear and controvert the facts alleged in the petition, the judge shall determine, as soon as may be, the issues presented by the pleadings, without the intervention of a jury, and unless the material allegations of the petition are sustained by the proofs shall dismiss the petition. Any creditor or stockholder shall be heard on the question of the permanent appointment of an q trustee or trustees, the proposed recommendation, approval, or confirmation of any reorganization plan, and upon filing a petition for leave to interven e on suc h other question s arisin g in the proceedi ng as th e judge shall determine. The debtor, or the trustees if appointed, shall within fifteen days or, upon cause shown, such other time as may be directed by the judge, prepare (1) a list of all known bondholders and creditors of, or claimants against, the debtor or its property, and the amounts and character of their debts, claims, and securities, and the last known post-office address or place of business of each creditor or claimant, and (2) a list of the stockholders of the debtor, with the last known post-office address or place of business of each. The contents of such lists shall not constitute admissions by the debtor or the trustees in a proceeding under this section or otherwise. Su ch lists shall be open to the inspection of any creditor or stockholder of, or claim ant agai nst, the debtor, during reasonabl e busine ss hours , upon application to the debtor or trustees, as the case may be. ."(d ) Before creditors and stockholders of the debtor are asked finally to accept any plan of reorganization, the Interstate Commerce Commission shall after due notice hold a public hearing at which the debtor shall present its plan of reorganization and at which, also, such a plan may be presented by the trustee or trustees, or by or on behalf of creditors of the debtor, being not less than 10 per centum in amount of any class of creditors . Following such hearing, the commission shall render a report in which it shall recommend a plan of reorganization (which may be different from any which has been proposed) that will, in its opinion be equitable, will not discriminate unfairly in favor of any class of creditors or stockholders, will be fina ncia lly adv isab le, wil l me et with the re quir eme nts of s ubd ivis ion (g) of this section, and will be compatible with the public interest. n such report the commission shall state fully the reasons for its conclusions, and it may thereafter, upon petition for good cause shown, and upon further hearing if the commission shall deem neces- sary, modify any of its recommendations and conclusions in a sup- plemental report stating the reasons for such modification. There- Prov iso. Number. 1477 Designation of. Priority of certain claims . Issues controverted in petition to be de- termined. Rig ht of creditor, etc ., to be heard. Lists to be prepared. Bondholde rs, credi. tors, etc. Stockholders. Not to constitute ad- missions by debtor. Inspection of. Reorganization plan. Adoption of. Hearing by Inter- sta te Commerce Com- mission . Report. Recommendations. Reasons for condlu- sions to be stated.