228 F. 921 | D. Mass. | 1915
This is a review taken by certain creditors from action by the referee in reference to the choice of a trustee.
At the first meeting on July 2, 1914, it became evident before the voting for the trustee began that a contest was imminent. Thereupon a request was made that the meeting stand continued for a few hours in order that proofs of claims of the Worcester Trust Company and of the Globe Manufacturing Company might be presented and allowed. The referee granted the postponement requested against the protest of these objecting creditors. Their counsel thereupon . stated that objection would be made to the allowance of the claims referred to on the ground that preferences had been received by the claimants, and that he was unprepared to go on with evidence at that time, and he asked for a continuance of the meeting until July 30th, that hearings might be held in the meantime and evidence taken upon the question of the allowance of these claims. This was agreed to, and the meeting was adjourned accordingly. The claim of the Globe Manufacturing Company was filed on July 2d, and that of the Trust Company on July 14th. Hearings on them were held from time to time.
The objecting creditors contend that the referee erred, first, in continuing the meeting in order to allow the claims of the Worcester Trust Company and of the Globe Manufacturing Company to be presented and allowed; second, in allowing- the claim of the Trust Company to be voted; third, in not passing upon the claim of the Globe Manufacturing Company; fourth, in not declaring Whiting elected trustee; and, fifth, in not ruling that Mr. Tatman was disqualified, because he was controlled by the bankrupt, or by one Wolf son, as preferred creditor. As to the last objection: The referee reports that at one of the hearings before him counsel for these creditors stated that he had no criticism to make of the qualifications of Mr. Tatman for receivership or trusteeship; also reports that Mr. Tatman’s conduct of the affairs of the company was satisfactory to the referee. It does not appear that Mr. Tatman is controlled by the bankrupt, or by Wolfson, or that he is in any way disqualified from acting as trustee.
Under the rule of law above stated it is clear that sufficient ground for setting aside the election is not shown. I have not considered and do not pass úpon the validity of the Trust Company’s claim, nor whether it received preferences, beyond what is required in making a decision under the view of the law above stated.