The opinion of the court was delivered by: CAMPBELL
CAMPBELL, District Judge.
This is a hearing on a petition to review the order of the Referee dated November 16th, 1940, dismissing the specifications of objection to the amended plan of arrangement filed by the debtor above named, and for an order sustaining the petition for review filed by the objecting creditors herein and reversing the said order of the Referee.
The debtor has offered an amended plan of arrangement whereby the creditors will be paid 25% in cash, and a note for 5% payable in seven months. Objections were interposed to the confirmation of this plan on the following grounds:
1. That the plan of arrangement is not fair and equitable and is not for the best interests of creditors (contained in specifications 1 and 2).
2. That the debtor has committed acts which would be a bar to the discharge of a bankrupt (contained in specification 3).
The Referee saw and heard the witnesses, and is familiar with the estate and its management.
The burden of proof is on the objecting creditors to sustain their objections.
There is no evidence in this case that any one would purchase the assets of the debtor for a sum that would produce more for the creditors than is offered by the plan.
It is true that the schedules filed by the debtor in this proceeding show assets in the sum of $77,436.55, and liabilities in the sum of $55,739.95.
Under the plan the creditors will receive the sum of $14,826.00, but in addition to that the debtor will be obliged to pay administration expenses, wage claims, commissions to salesmen, and will also have to make provision for deposits held by the debtor from its customers.
The figures as to assets given by the debtor in its schedules represent book values not actual values.
There is no proof as to the fair market value of the assets, and it hardly seems necessary to go into details as to the deductions to be made from the book value to ascertain actual or fair market value, because the creditors committee, practical men who are greatly interested in obtaining for creditors as much as possible, took stock, and made an inventory and appraisal which showed a present market value of the debtor's merchandise stock of approximately $14,000.
The figures on the statement of June 10th, 1940, were read to all the creditors at the meeting on June 24th, by the witness Rosenbaum, and were explained to them in detail, and the plan was not accepted until after that meeting.
The objecting creditors have failed to prove specification of objection No. 1 by even a fair ...