The New York herald., 1871-02-02
BANKRUPTCY.
to Ba1krupts May Act as Trustees-Im-
portant Decision by Judge Blatchford.

case illustrative of the exhaustive article one
branch Of tile Bankruptcy law which appeared in
the HERALD on Tuesday last, came up yesterday bes
fore Judge Blatchford. We refer to the article ON
the tedousness and costs or bankruptcy suits while
left solely In the hands or registers. There cer
tain remedy for this, out unfortunately, like all par
tia remedies, only applies to the rich and heavily
estared bankrupts and creditors who can take ad!
vantage OF 1t. The poor man, OF course can ba
neeced In very short time, and his case and his
money quickly disposed OF. But when there Is a
large estate in bankruptcy the process Of dismem-
bering and curtaiing 1t OF It's fair proportO goesl
on more slowly, and the rapacous register holds on
to IL like a hungry leech Some years ago this evil
prevalent III the English courts as. well as here
called for remedy which was provided in am
amendment to the act OF bankruptcy which is em-
bodied III present act empowering three-IOurtha
OF the creditors to appoint themselves committee
for the management OF the estate under trustees Of
their body and to report to the court who VIII
confirm the trustees so appointed to manage the
estate
In the case below this course was followed, but
one OF the creditors objected to the appointments
Of the trustees named by and forming the committed
OF creditors the ground that they were related to
the bankrupts, and that being so, they would deal
favoraby with them, and to that extent injuriously
to the other creditors. Judge Blatchfords opinion,
mttee, representing threefourths Of the creditors
as against the dssentient
IN the Matter OF WtAidm G. Zian ana Others,
BanhaWprs.- in the United States Dis
trct Court Judge Batchiord rendered the subjoinel
decision in the above entitled cause 1t VIII be read
with considerable Interest,"
In this case at the first meeting OF the eight credi-
tors, who had proved their CLAIMS and whose claims
amounted in the aggregate to 1892, 712 6S, and to
three-fourths in value OF the aggregate amount or
all the claims proved subscribed under section 43 OF
the act, resolution that 1t for the interest Of
the general body Of the creditors OF the Dankrupts
should be wound up and settled, and dIStriburion
MADE among the creditors by trustees under the In-
spectlOn and direction OF committee OF the credtI
tors, and nominating John Ii. Wyman as trustee.
and Samuel Wyman, Jr,, henry Almy and George y.
u. Leaman as the committee. Among the eight
creditors are Herman D. Aidrich to the amount of
$lSS 1858 So, who signs by said Samuel Wyman,,
Jr., his attorney; the said Samuel Wyman.
Jr., to the amount Of sl4ss5 S6; the SAID,
George G. P. Leaman to the amount OF $o4,942 As.
and the firm Of which the said Henry Alny is =
member to the amount Of $4,000. The said Herman
d. Aldrich s the uncle of two OF the bankrupts. The
wife of the said Herman d. Aldrich Is the cousin OF
the said John II. Wyman and the sister Of the said
now In lunatlc asylum as patient for his health,
but has not been adJudged lunatlc by any legal
proceedings nor mas any committee OF his person or
estate been appointed. The said Samuel Wyman,i
Jr, acted as the attorney for the said Herman d..
Aldrich IN proving the said claim or the said Herr
man d. Aldrch and In voting for SAID resolution IN
pursuance OF power Of attorney executed by !
Aldnch, IN January, 1870 when he was OF sound
therefore related by consangulnlty and ar1nity
in in the fifth degree to Herman D. Az
two bankrupts who are the nephews ol Herman ID
Aldrich Samuel Wyman, Jr., is related by consan@
aho ana IN s seven sa TO 70 4he
bankrupts who are the nephews OF Herman D.l
Aldrich, and In the fourth degree to John III
| Wyman. creditor who has proved his debt and
whe did not vote for or sign the resolution objects
to It's confirmation Dy the Court the ground Of the
relationships and the other parts thus stated. me
mere fact OF relationship in the ninth degree, Al
less degree on The part of the proposed trustee TO
bankrupt or to creditor even the largest in
amount. Of q bankrupt or to a proposed
member or the committee, or on the part OF
such creditor, or to the bankrupt, cannot be re1
| garded as disqualification. Other facts ndeed,l
may concur with such relationships to make conJ
| frmaton improper. But IN the present case there
such facts. The three persons named as thel
| the aggregate of their claims being more tharH
$s4oo0. Samuel Wyman Jr., IS the attorney Of tna
largest single creditor @ The theories Of the prod
fourths in value or the creditors who have proved
their debts shall designate The trustee and the conl1
case gentlemen of high character and sanding,a
free from all reproach. Nothing appears toi
Of the bankrupts al the expense OF the credtcrs.1
| John II. Wyman and samuel Wyman, Jr.J
ae ey ara tS e
quired by the forty.thlrd section to wind up and
settle the estate for the equal benefit OF all the
OF the Court IN executing his trust Tnereis nothing
to warrant the suggestion that the bankrupts proS
cured the creditors TO make these appointments on
that they made IN the interest of the banKS
rupts as against the creditors. w. Leaman although
resident OF New Jersey, has place OF business iu
New York, which he frequents daily. The question:
raised IN regard to the power OF attorney from
Herman d. Aldrich to samuel Wyman, Jr., and I'd
the insanity OF Herman ID. Aldlich. l do not conS
sider for the that II the claim OF Herman ID
Aldrich be stricken out from the signatures 20 thS
resolution, IL must likewise be stricken out from thd
debts proved, and there would thus still be slena1
lures 10 the resolution OF creditors to recfourlhS
In value OF the debts proved. Notwithstanding tho
appointment OF a trustee and the assignment OF the
estate to him, the claim OF any creditor may be ina
vestigated under section % and the bank9
rupt and other persons may be examined undel
under section 27 The resolution passed by tho cred1
itoH Will be confirmed when the register shall havd
signed the proper certificate under form 63.
j. 3. l.. Cummins for the resolution; A, G. Franz
sioli for opposing creditor.