this Court have not specified the amounts requested but have left it subject to the discretion of the Court. It is evident, however, that the total amounts of all administration expenses so requested very greatly exceeds the sum available for payment.
At the inception of the hearing on November 6, a brief summary was made of the affairs of the Kelly Springfield Tire Company and an outline given of its reorganization; and also there was made a statement of the general principles of law which the Court deemed applicable in the present situation with regard to the determination of the allowances now requested. For convenience the main considerations may be here repeated. The authority for making such allowances and the directions with regard thereto contained in section 77B ofaverage annual operating loss of about $1,000,000; and the economic conditions prevailing in the rubber tire industry were such that there was no prospect of improving operating results. For some months prior to December, 1934, there was very serious internal dissension among the stockholders and noteholders of the Company with respect to the personnel and policy of management. A large number of the common stockholders were endeavoring to effect a complete change in management. Thereupon a group of noteholders, substantial in amount, brought a proceeding in the Chancery Court of New Jersey for the appointment of receivers with the ultimate possibility of liquidation or reorganization. Three receivers were appointed by the Vice-Chancellor, Messrs. O'Regan, Maguire and Burke, the latter, on December 19, 1934, president of the corporation. On