Putnam patriot., 1910-11-25
Hearing of Araeld's Creditors.

ey attorney or ic person, st the fir>t hearing eefoFe Referee in Bankruptcy, X. J, Bowen, on the estate of Ernest NJ. Arnold, the bankrupt t'alea street guaranteed investment dealer. The l hearing was held in the Board of Trade rooms in Wiliimantie. Deputy Sher- itl Geo. r. Heiotook. ef this city, WAS appointed trustee.
 shortly before the meeting Mr. Ar noid entered the room. Attorney Rus sell of Putnam was present 10 repre- sent Arnold's interests, and also those of himself, he being one of the largest individual creditors.
 Before the meeting WAS called to order Judge Bowen explained its par- pose and offered the policy of Sso, eco on the life of Mir. Arnold tn the Pennsyl- sania Mutual Life Insurance company to the highest bidder. He had already received a bid of $hA from Mir. Thompson of New Haven, and that gentleman had paid one premium. amounting to little over Si ,ap on the policy, which would have to be re- imbursed to him, hs the bidder. The policy will have a lapse value of about S3 ,soO after another years premiums are paid. The question was asked hy one Of the creditors why. If il was Il good investment for single person to make, why wouldn't il be te the ad- santaee ef the estate to keep up the premiums until ihe policy had lapse value; and thus save the entire profits for the estate. Judge Bowen decided lhal this would he Illegal and Inc mat. ter was left until the afternoon for fur. thef consideration by the creditors.
 The matter of appointing trustee was then taken up. Judge Bowen eN- plained the method of eieeting n tfus. lee, saying that the majority of credit ors, that Is, in the amount of their Of Putnam said that he represented 2O0 creditors with claims .aggregating about $300, QUO Al this junctute Fred erick II. Allen, . Hartford lawyer, in terrupted with the req uesi that Attor- ney ,Geisler answer the question, whether he secured these claims by the voluntary act of the creditors or not2 He himself had clients that had re- ceived letters from q firm Of lawyers in Putnam who didn't understand what they woaid be doing in authorizing the ! firm to act for them.
 Attorney Geisler then explained that he had sent a circular letter that would explain itself to every one of the 1, creditors by request Of sheriii Hoi.
 He then laid the letter on Judge Bow cn's desk, who read 1t for the beneii Of the creditors. The letter requested that the clients sign power Of attor- ney in favor of Mir, Gelsler or his brother attorney, Mir. Torrey, anthoriz. idg them to vote for Mir. Holbfook for trustee.
 | Mir. Alien then said that several clients of his had had letters from Mir.
 Barron, who is solicitor for Arnold. recommending this firm of lawyers, Torrey A Gcisler, a attorneys for the creditors and recommending Deputy sheriff Holbrook for trustee.
 Attorney Russell explained that he had talk with Barron on . street car one day and he had mentioned that
 Mir. Holbrook would be . good trustee and that Barron had agreed with him and mentioned that he might send Iet- l ters to some of Arnold's creditors with
 whom he was personally acquainted fayoring his, Mr. Holbrook's candida cy. Mir. Russell thought therefore that perhaps he indirectly might have | influenced Barron to write the letters. Mir. Geisler reiterated that lie sent out i the letters at MT. Holbrook < request and that he did not know until three letters. Of his claims he had pef%on- aiy seen more than three-fourths of them, the other thirty of 50 having been received by mall. Allen having secured one of Barfonis letters read several extracts from il to show that l Barron solicited votes Tor Holbrook and recommended Tofrey < Geisler as attorneys. He wound up his extracts
 with . portion of sentence beginning, "f want to tell you confidentiaiiy,u v and said that that was the portion Of the letter he could not read, although It wss the portion he most desired lo. Mfr. Allen said he had been told that some of the creditors understood that 1t was the referee's wish that they sign these papers for Tofrey < Gsisief. How they came by that understanding he did not know.
 Judge Bowen then said that unless the creditors disagreed materially up- on the appointment Of trustee he had no power 10 acl in the matter. But he believed the matter of The appointment of sfdstee sf,onsd be disposed Of al this meeting as li was essential to save ali time possible.
 l W. +. Garter of Putnam, who said ] that he was q friend af Barron and q creditor os Arnold, read from q letter 1 he had received from Barron which did not say anything about Torrey X | Geisler, but did mention that if Mir. HoIbfoOk wss appointed trustee, he