The Detroit times., 1908-08-15
BITTER FIGHT is
MADE AGAINST
BANKRUPTCY
LAWYERS WRANoLE FOR HOURS
AND REFEREE pAvoc FINELY
PosTPoNEs HEARING UNTIL
NEXT TUESDAY.

Bitterness characterized the hear
Ing Friday afternoon before Referee
In bankruptcy NARROW r. Davock, In
regard To the appointment OF a feder-
al court receiver for Cameron Currie
a. Co. TO such an extent that the pro-
ceedings at times could only be char
acterized az disorderly
! Two attorneys appeared for the
petitioning general creditors while
more than dozen OF the biggest men
at the Detroit bar appeared for the
receiver and the big creditors and
fought savagely against any interior
ence with the state court proceedings
Al one time Referee Davock AN
nounced his intention To appoint a
receiver in bankruptcy but there was
such storm OF argument and dis
approval from the legal lights present
that he withdrew this decision and
left the case open for further hearing
next Tuesday.
In the meantime, the counsel OPP
posing the proceedings in bankruptcy
will collect data to try TO show that
iirreparable injury would be done the
interests of Cameron Currie * Co.'s
creditors by any change In the meth
cd of conducting the case.
4
case. apparently and all the facts ON
the other. The disposition to retain
Fred G. Austin as receiver and to-
keep the matter out of the white
glare of the bankruptcy courts
searchlight methods as long as pos
sible was evidenced by the bitter con-
test put up.
/ Attorney G.. III. Hatch appeared
first for the petitioning general cred
itors and read petition alleging
that the estate was in danger of los
ing money through rent of expensive
officers, litigation and other expense.
He declared that the bankruptcy
court Is the one which must finally
dispose of the case and urged that
that action be taken as quickly as
possible by the appointment Of the
Detroit Trust Co. as receiver
f. w. Stevens, for r ceiver Austin.
replied in an attack In which he chal-
lenged all the statements set up as
ffacts i'm the petition and arraigned
Hatch severely as trying to force ac-s
ton contrary to the interests or the
creditors. He contended. as did Attor-
tneys j. o. Muffin and Harrison Geer,
who followed, that the appointment OF
another receiver now would mean
further delay. second audit OF the
books and the probable expense of
thousands OF dollars in fighting the
case in the Boston courts instead or IN
Detroit.
All the attorneys opposing the peti.
ton were agreed in believing that
Hayden. Stone & Co. would quit Tight
ing the suit here over the assets OK
the firm and take the contest 10 Bos-
ton IL Austin were replaced.
Orla b. Taylor went after Attorneys
Hatch and Graves as having made
gratuitous attack on Receiver Austin.
his attorneys and Judge Mandell, and
said that the petition for new re-
ceiyer was the most inadvisable pro-
ceeding" he had ever known In
court of Justice. He declared that the
petition was full OF insinuations or
misdoing.
Graves Feelings Hurt.
Charles s. Graves replied 10 the
batch OF attorneys WHIT had opposed
the appointment of n receiver Dy
throwing law az them in chunks His
feelings were hurt By the insinuatloh
dropped by another attorney trat ms
firm had started bankruptcy proceed
ings only for the sake OF getting the
fees given counsel for the pettionins
creditors and receiver.
Everyones feelings were injured by
this time and the hearing had develop
ed into a clinic for wounded sensible
tiles.
John c. Spauldlng tried 10 unrayel
things by nominating Fred G. Austin
as receiver. but this Hatch and Graves
would not consent TO. saying that MS
duties as receiver uLder the state
court and the federal court would
conflict. That he would be forced 10
recognize preferences under the
state laws which he could not under
federal statute.
Murnn declared that 80 per cent OF
the creditors wanted Austin as Ieceiv.
err. and commended his actions, and
Graves replied by asserting that many
who appeared as creditors might turn
out 20 be debtors
After two hours OF argument ana
denunciation. Referee Davock decided
that the law lay with the petitionins
creditorws even though they represent
but vestige OF the interests involved.
lie said that he would appoint the De-
troit Trust Co. as limited receiver.
with power 10 conserve all the assets
except such as are involved In the
suit against Hayden, stone 4 ca, the
Boston and New York brokers through
whom Cameron Currie co. tradeu
land with whom most OF the assets
iarepledged
This brought Geer. Murfn and OH
lers 10 their feet and volley of argl-
ment followed. Davock finally "iln-
! ,Confinued on PAGE Eighth