Page:United States Statutes at Large Volume 50 Part 1.djvu/681

 656 Compensation ; ap- proval by court. Proc edur e whe n petiti on app roved . Notice to cre ditors. Publication of notice ; copy to each creditor. Answer by creditor controverting allega- tions ; objections. Extension of hear- ing. Decision on issues pres ent ed. Proviso. Payment of claim holders without pref- erence . Preferential, etc ., holders. Referen ce to s pecial master for considera- tion. 7 5TH CONGRESS, 1sT SESSION-CH. 657-AUGUST 16, 1937 organization, group, or individual and the creditors represented by it or them, which contract shall disclose all compensation to be received, directly or indirectly, by such committee, organization, group, or individual, which agreed compensation shall be subject to modi fication and approval by th e court. "( b) Upon approving the petition as properly filed, or at any time th ereafter, the judge shall e nter an order fixing a time and place for a hearing on the petition, which shall be held within ninety days from the date of said order, and sh all provide in the order that notice shall be given to creditors of the filing of the petition and its approval as being properly filed, and of the time and place for the hearing . The judge shall prescribe the form of the notice, which shall specify the manner in which claims and interests of creditors shall be filed or evidenced, on or before the date fixed for the hearing . The notice shall be published at least once a week for three successive weeks in at least one newspaper of general circulation published within the jurisdiction of the court, and in suc h othe r pap er or papers havin g a g eneral circu latio n among bond dealers and bondholders as may be designated by the court, and the judge may require that it may be published in such other publication as he may deem proper. The judge shall require that a copy of the notice be mailed, postage prepaid, to each creditor of the petitioner named in the petition at the address of such creditor given in the petition, or, if no address is given in the petition for any creditor and the address of such creditor cannot with reasonable diligence be ascertained, then a copy of the notice shall be mailed, postage prepaid, to such creditor addressed to him as the judge may prescribe. All expense of giving notice as herein provided shall be paid by the petitioner. The notice shall be first published, and the mailing of copies thereof shall be completed at least sixty days before the date fixed for the hearing. "At any time not less than ten days prior to the time fixed for the hearing, any creditor of the petitioner affected by the plan may file an answer to the petition controverting any of .the material allega- tions therein and setting up any objection he may have to the plan of composition . The judge may continue the hearing from time to time if the percentage of creditors required herein for the con- firmation of the plan shall not have accepted the plan in writing, or if for any reason satisfactory to the judge the hearing is not com- pleted on the date fixed therefor . At the hearing, or a continuance thereof, the judge shall decide the issues presented and unless the material allegations of the petition are sustained, shall dismiss the proceeding . If, however, the material allegations of the petition are sustained, the judge shall classify the creditors according to the nature of their respective claims and interests : Pro vid ed, ho wev er, That the holders of all claims, rega rdless of the manner in whi ch they are evidenced, which are payable without preference out of funds derived from the same source or sources shall be of one class. The holders of claims for the payment of which specific property or revenues are pledged, or which are otherwise given preference as provided by law, shall accordingly c onstitute a s eparate class or classes of creditors. "At the hearing, or a continuance thereof, the judge may refer any matters to a special master for consideration, the taking of testi- mony, and a report upon special issues, and may allow reasonable compensation for the services performed by such special master, and the actua l and necessar y expenses in curred in con nection with t he