Fisherman & farmer. [volume] (Edenton, N.C.) 1887-19??, 1899-01-06

nave kept this knoW'edSe Secre
until after argument and tn
rendition of an adverse decislo
bv the Special Referee.
tliuts with suspicion subsequen
proceedings fer liti.ants or thel
counsel to treat the count or III
of its officers with such pun:
faith in tie initial stages @
litigation.
The fact though now haviEj
been brought to the attention o
the court must beconsidered
The Referee was appointed b,
the Judge. the Referee of tn
! division being interested and til
deputy clerk at Elizabeth CIT,
being a near rel. tive Of the res
pondent. Sec 43.
"Referees shall uot act II
cases in which they are directly
or indirectly inteiested.' Sec
80 S. I. The meaning OF thi:
sub section depends much upor
definition and construction. In
terested in what? The estate OIL
the Bankrupt proceeding? He
cannot be interested in the
estate, for he is a debtor,
and not creditor. If he were q
craditor he would be Interested
but he is a debtor and there is
On denial Of the debt, he can
have no interest either the estate
or the proceedings. The proceed
ings do rot change his status.
If respondent is adjudged Bank
rupt the debt must be paid and
if the proceedings are dismissed,
still he must pay. In 10 event
is the remedy on the debt charg-
cd. or the debtors liability in
creased, decreased or affected.
he can do or left un-
done will affect his liability or
reduce his Indebtedness. If this
were a disqualification every
time a man to whom a Referee
owed any debt III a matter how
trihing filed a petition or was
proceeded against the Referee
would be disqualified and the
Bankruptcy Court would be
constantly appointing Special
Referees to be removed as soon
as the Bankrupt, using every
device to hinder, delay and de
feat creditors, should find after
many ways the Referee owed
him a small debt
The first ground Of exception
is therefore overruled. and it is
held that the fact the Special
Referee owe respondent a debt
is not such an interest as is con
templated III section 80, as a
disqualification to act as Referee.
To be disqualified a Referee
must be directly or indirectly in
ter -sted i'll the proceedings in
bankruptcy or the estate Of the
Bankrupt. In the case at bar the
Special Referee is rot interests
cd. directly or indirectly IN
either he may not be unbiased
81 abs lutely impartial, he may
feel under obligations, or he
may illustrate, that a loan of
oses both itself and friend.
2. There is no force in the
"that the Referee was
before the answer and
4 petition for trial by jury were
lied and without the knowledge
and consent Or approval of res
Dondent or their attorneys
Referees are appointed under
section 81. by the Judge, and as
many IS he may deem necessary.
Sec. 81, generally before any
proc enings are instituted. with
)ut constitution with prospect
i've Iit:ganl$ or Bankrupt$, tEei1
ttorne>s or the approval Of
4ithcr. Bat a few words wou d be
required TO reduce this objection
ad abSurdum. The regular Re-
feree OF the division of the Dis,
trict being absent or disqualified
as heretofore adjudged) the
Judge may act or appoint ans
other Referee, as was done it
the case at bar. Sec. 43.
And there is no hing in the
Act Whl.:il reqntrrs the Judge
to wait1Thtil an answer is filed,
4 jury trial demand d. OF the
consent Of he party proceeded
against or his Counsel obt1ined.
3 The fourth objection an
5Wers the thi,-d objection and /.
sustained. The Deputy Clerk
at Elizabeth CITY be NJ broth
ar in law of defendant Cobb and
there being but Il he Judge Clerk
in the District, lat Raleigh re
TERED the matter. The case at
bar is an exception to the pros
vision for reference by the Clerk.
the Judge being i'll the District,
ard even if this We're within the
purview of The power conferred
Oil the clerk he neglected to per-
form the duty. But the cause
having been referred by the
Judge, and certainly the Deputy
Clerk at Elizabeth City had 70