Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1900-04-19
KNOTT & BLOSSOMS DEBTS,
First Meeting of Creditors in This
City Thursday.
John j. Enright Elected Trustee-Un
successful Effort Made to Classify
the Claims as Real and Specula-
tive-Next Meeting April %.

The first meeting Of the creditors Of the
firm Of Knott d Closson, the bankrupt
brokers and commission merchants of
this city was hold Thursday afternoon.
The meeting was held before Referee in
Bankruptcy George w Debervillc at his
office and was for the purpose of elect
ing a trustee for the estate and the proof
of claims. John j Enrigh was selected
as trustee. compromise being made so
that the election was unanimous. A large
portion of the creditors were represented
by attorneys. a few, however, appeared
i'm person. There were present ABOUT 20
people The hearing was adjourned short
ly before . o'clock until April Is at a.
m, when opportunity will be given for an
examination of the bankrupts The only
feature of the hearing of more than or
binary interest was the contention of A.
e. Whittemore. representing what he
| termed bona nde creditors or creditors
who had actually furnished omething for
the amounts with which they were cred
tied. Mr.. Whittemore held that all other
claims were OF a speculative character
and If so proven should not be entitled to
votes for trustee. His objection was
/ oVcrruled
| The hearing was opened at O'Clock and
the work Of proving claims was begun.
Mr.. Whittemore then made his objection,
saying that he should object to all claims
Of a speculative character. He said he
represented the claims in which there was
no question as to their character and
claimed the right to object and the ref
cree should then set aside for future con-
sidcration claims in which there was any
doubt as TO their character. questionable
claims, he said, should be put aside until
after the election of the trustee, Contin-
Iuing, Mr. Whittcmore said that by specu-
IlatiVe claims he meant the claims grow
ing out OF the buying and selling, which
was Illegal. that is the buying and SELL
n what the did TNppCt
to receive, The patrons dealings were as
deer in the mud as the firm in the mar
kct. The question raised is, has that
class of creditors "A right to come in and
elect such Il trustee as they see fit? Mr..
Whittcmorc cited as authority upon the
subject Collier on bankruptcy.
+ In addition Mr. Whittemore said he
should claim that in Vermont the statutes
prohibited the business which the firm
had conducted. Stripped of all outside
covering. the question came to this-they
have been carrying on a business which
the law prohibits and which renders them
liable to punishment; that is If the firms
customers have been buying on margins.
/ this is true the firm buy and do not de-
liver or have the intention of so doing
Most of the creditors had not the abil
itY to pay for what they purchased if 1t
had been actually sold or delivered. They
had no idea of taking the goods and Knott
q ClosSon did not expect them to take
them. II this is true the business ia ille-
climate. The customers may also have
been criminals in the transactions for
they support the firms business and so,
too, are guilty. | am here to see that the
assets are applied to the honest debts and
| do not propose to have the first class of
creditors paid up against the claims of
legitimate creditors If l can prevent II.
The selection OF a trustee is important
and we insist that the matter must he in
vestigated. This business was only stock
gambling and l ask the privilege of eX-
animation in the hearing as to the specu-
lative claims. / believe that We can show
that the creditors never expected to re-
ceive or take the stocks they bought.
! r. T.. Brown, w. l.. Burnap and Il. p.
Finn of Springfield spoke briefly for the
speculative creditors. as they had been
termed Mr.. Finn said he did not know
what sort of a band of angels Mr.. Whit
temore represented but he had few hon
est creditors in Springfield whose rights
he desired to protect
/ Mr.. Whittemore represented the claims
of "A. j. Stanley & Co. the Burlington
Gas company the Vermont Electric COM
pany and others.
/ In view of the allie cations of Mr. Whit
temore it was suggested that it might he
we'll to have an examination such as he
suggested made of some of the creditors.
The objection had been overruled by the
referee but O. c. Sawyer of Sharon, one
of the creditors, was called as a witness
and under the examination of Mr. Whit
temore testified in substance as follows:
He had proved a claim amounting to
something over 1890, which represented
the balance due him on a general account
with Knott g. Closson. 1t represented
products and stocks purchased with mon
ey placed in the hands of the firm by him.
His account had been running about four
years. He had bought pork, lard, cotton,
corn and other stocks but never had a
general settlement. He had put in more
than was due him and lost previous to the
firms going into bankruptcy. His pur-
ichases were made with money on deposit
with the firm with which he bought on
margin.
He had never seen a certificate showing
property in their hands There had been
times when he intended TO take what was
purchased. Some corn was taken by him
at one time from f.. +. Knott. but he had
taken nothing since dealing with the
firm OF Knott & Closson. He never had a
warehouse receipt or certificate that he
had bought stocks.
His understanding was that he could
have his property If he wanted ii. Had
at the time of failure about 800 bales of