The Savannah morning news., 1903-10-15
BANKS MUST SHOW
HOW THEY ACQUIRED RIGHT OF
POSSESSION TO
ASSETS OF |. SILVERBERG.
INVESTIGATION BEGUN BEFORE
REFEREE. MACDONELL.


Parties at Interest Were subjected
to Examination-Shcr HorriRan
Told of sale of SiIVerbergs Pro
perty-Trustee Is a Sort of Fheo-
reticaI NEUTRALITY-SUSPICIOUS. Have
the Assets and He Has Practically
Nothing 70 Administer On-InNesti-
cation VIII Continue UntiI Matter
Is Cleared Up.
Who has the right TO the assets Of l.
Silverberg and l. SilVerberg Co.
the banks or trustee in banhuptcy2
That is one Of the questions which
which will be determined by an inves-
tigation which has been begun, and
which, before it terminates, promises
to be productive of some startling dis
closures.
The trustee for the bankrupts, w.
P. Hardee. Esq, though legally the
guardian of the property of the bank
rupts, is, as a matter of fact, sort of
theoretical trustee, he being in posses
sion of practically none of the prop
erty of the bankrupts. He has. all
told about 5000 worth of property. He
has also, of course, the Chicago Bow
er Companys bonds but it is doubtful
if enough could be realized on these
with which to shroud a gnat.
Under the bankruptcy law, an inquis-
itoriaI court is provided for, whose
province it is to ascertain the status
rerum by a personal examination of
the parties either directly or Indirect
" concerned. This investigation has
been begun. The first ground was
broken Tuesday afternoon at hear
ing before Judge A. Ii. MacDonell,
referee in bankruptcy. The hearing
was not concluded. 1t is likely that
many hearings will take place, and the
banks, Mr.. Rose and number of 9TH
er interested parties viii be called up
on TO explain certain transactions in
which they figured.
Trustee Wants Possession.
There is serious doubt in the mind
of the trustee Of the right of the cred
itor banks to assume charge of the
Camden county plantation and the mill.
Whether he will insist upon the pos
session of these is not limited, but GER
tain it is that one of the prime pur-
poses of the present investigation is
to ascertain whether he is not entitled
TO that property.
March 8, last. Silve9erg sold the
Camden county, or Satilla, plantation
TO one Harmon of Ohio, the considera-
ton expressed in the transfer being
$780, 600 The deed was not recorded
until July y, following. on the same
day that the trade was contaminated,
a mortgage was executed to secure the
payment of $4,000 unpaid purchase
money. While this paper is dated
March g. there is reason to believe that
that was not the true date of its exc
cution.
silverberg took the mortgage to the
bank in May, few days after 1t was
recorded, and secured $4,000 on it. OF
this amount he got SIT 900 from
the Southern Bank and $4,000
from the National Bank OF
Savannah All of these matters
judicial investigation, in order to as
certain whether the banks have the
right to assume control of the proper
ties of the bankrupt concern. It Is
even limited that there may have been
some shady transactions on the part
of Silverberg which might materially
alter the status of affairs.
Hearing Before Referee.
No reluctance on the part of those
summoned to appear before the referee
was encountered. Subpoenas duces tie
cum, or writs commanding the parties
to come and bring their books and ac-
counts with them, were issued to M.
Fersts Sons & Co., Solomon Sheftall.
Savannah Grocery Company, Justice
Isaac r. Nathans and Sheriff ]. !.
Horrigan.
The proceedings were in the nature
of an investigation to ascertain what
the parties knew of the affairs of 1.
Silverberg & Co. and 1. Silverberg.
also under what proceedings certain
of his property was levied upon and
sold, and what had become of the prop
erty or its proceeds: also to inquire
into the validity of certain transfers of
property made by Silverberg and by 1.
Silverberg g. Co.
1t seems that after the bankruptcy
proceedings had been instituted. GER
tain goods, the property of !. Silver
berg & Co, were levied upon under an
attachment from the City Court against
the Union Grocery Company, which
was one of Silverberg's stores. This
property was sold by Sheriff Horrigan.
1t is maintained by the trustees,
through his attorney, w. CT. Charlton,
were void. inasmuch as an attach
ment can not properly be levied upon
the goods of a bankrupt.
The investigation will be continued
again at an early date. The attorneys
for the parties at interest have been
provided with the evidence adduced at
the hearing. After a careful examina-
ton of this evidence. the scope of the.
next investigation will be outlined. 1t
is probable that the banking institu-
tions will figure in the next hearing be