Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-10-19

regularly i1G6DScu dllOi iltS Nun ~
pearing in any particular court as r
quently as his duties call him there.
I'm a compilation of bankruptcy cases
from January, 1909, which recently ap-
peared in a daily paper in an attempt
to support its assertions that there was
a combination In control of bankruptcy
matters, it there appeared that OF a
total of ZIG cases mentioned, my office
appeared in only twenty-three during
a period of nearly three years. 1 was
also interested in sixteen cases in con-
nection with which my name was not
mentioned. How absurd this charge is
in view of the small percentage of the
total number of cases.
1T has been stated that a combina-
ton existed between the referee, a
number of other lawyers and myself
hic resulted in % the illegal disal-
lowance of claims by the referee; %
the refusal to grant adjournments, and
(3) the allowance of excessive fees.
"A most superficial examination or
the law and facts, made in good faith,
would satisfy any intelligent person
of the great injustice and falsity OF
such statements.
I'D The bankruptcy act provides,
SOULFUL ~ 4
what a proof of claim h contain,
how it shall be set forth and proved.
and what claims are entitled to VOTE
and 1t provides further that claims
which have been duly proved shall be
allowed. unless objection to their al
lowance shall be made by parties IN
interest
THE general orders in bankruptcy
-.--l-.4.a H., tho Surname Court OF
the United States, October term, 1898,
provide further specific requirements
as to the execution of claims and let
tiers of attorney which must be COM
piled with in order to make the holder
eligible to vote thereon.
Thus 1t will be seen that in order to
entitle the claimant to vote for the cleo
ton of a trustee, the claim and letter
of attorney must be prepared in strict
conformity with the provisions of the
law and general orders of the Supreme
Court.
Pennington, in his work on bank
ruptcy, which is recognized as the stan
dard textbook on bankruptcy PRACTISE
SAWS (~section $3.50 that care and partlc-
ularity are required in the preparation
of a proof of claim and 1T must be
made as provided in the bankruptcy
act and the forms prescribed by the
Supreme Court and that the u
apparently has no authority to allow
any claims, except Ssuch as have been
duly proved and that only creditors
whose claims have been allowed may
vote for trustee See also section 5f3.
AN examination of the claims dis
allowed will disclose the fact hat in
every instance the claim was not pre-
pared in accordance with the law, due
to the carelessness or ignorance of at
tornoys. and hat no claim was disal-
lowed except for valid legal reason.
TT is a significant fact that in mo- a
single instance has an appeal ever been
taken from the decision of Referee
Adams in disallowing a claim which he
refused to permit to vote at the first
meeting for a trustee, although the
process of appeal is extremely simple,
is inexpensive and the matter can pc
most speedily determined.
ct is a matter of common knowledge
to judicial officers and other persons
familiar with bankruptcy procedure
that it is a most frequent occurrence
to find large numbers of claims pre-
scented for allowance upon which, be-
| cause of non-observance of the law, the
parties are not legally entitled to vote
under such circumstances, If objection
is made, the referee has no
but to disallow such claims.
at Is thus apparent that there Is
absolutely no foundation for this criti-
cism.
"(2) AS to the refusal of the referee
IN grant adiournments at first meet
ings. 1t is the plain policy of the law
to have a trustee elected at the earliest
possible moment. Applications for ad-
tournaments are made by creditors.
who al the meeting for the election
of a trustee are surprised to learn,
upon legal objection made. that their
claims are not prepared according to
law.
bennington lays down the rule (sec-
ton 500 that: "A postponement for
surprise" will not be granted where
the surprise" consists in the over
looking of a plain provision of the law
relative to proof of claims
This rule has been an invariable one,
recognized by Referee Adams since he
was first appointed referee, over six
years ago. 1t was enforced by him
fully three years before l began to
practise to any extent in the bank
ruptcy court.
1.-THE application of this rule has no
connection with me or my practise
there, and until my office became suf1-
GENTLY proficient in the practise under
the bankruptcy law to meet he re-
quirements of such law | was as often
adversely affected by the application
| of this r1le no otherwise
Il understand that this rule of the
referee was made for the purpose of
avoiding delay in the election of d
trustee and annoyance and inconveni-
ence to creditors who at times attend
meetings in large numbers and from
considerable distances. and h would
be obliged to attend again and again
pending the filing of claims in proper
form, which the exercise of ordinary
diligence and skill on the part of any
attorney would render unnecessary if
the claims were properly prepared in
the first instance.
"(3) The third allegation is that ex-
cessive fees nave been allowed by the
referee.
The fees in a number of cases have
been referred to, but no reference has
been made to the extent or difficulty
of the services or a comparison made
with the charge for similar services OF
| Tho "a - Ia, I'LL .-44.~ - 1T