In re Penn Central Transportation Co.

MEMORANDUM AND ORDER NOS. 3991, 156, 243, 184, 160, 182 and 175.

FULLAM, District Judge.

Section 77(c)(2) of the Bankruptcy Act authorizes the reorganization court to allow reasonable compensation to trustees.1 In the Penn Central case, the compensation of the Trustees was fixed annually at the beginning of the compensation year, and the Trustees were paid on a monthly basis. This approach was possible because the magnitude and pace of the reorganization proceedings were such that the work load in any given year was relatively predictable. The Trustees of the Secondary Debtors were compensated…