The Bridgeport evening farmer., 1914-11-17
CHANB ERLA AIN NAMED; APPEAL
 IS TREAT FINED
Burr & Knapp Bankruptcy Hearing Before Referee Banks Develops Many
 Charges.
LAWYER SELECTED
 IS CLOSE TO KNAPP
But Majority of Creditors Ex- pressed Confidence in Him Knapp on Witness
 Stand.

eie =
 Attorney John 6. Chamberlain was this morning confirmed as trustee for the bankrupt firm of Burr & Knapp, though the minority creditors through their attorney Lawrence Ffnkelstone, opposed the appointment before Ref cree John w Banks to the last ditch and filed notice of intent to appeal.
 Herbert M. Knapp, head of the bank rupt concern. was placed upon the stand in an effort to show his close personal relationship with Attorney Chamberlain Though an evasive wit ness, he acknowledged that he had been in the banking business since 1893, that he had known Champerialn for nearly 20. years, that they were fellow members of many clubs, and that through Eslbert o. Hull, who fore closed mortgages for the bankers, the firm of Chamberlain 6 Hull had done much business for them.
 It was shown that both Knapp and Chamberlain were interested in the Georgia Land & Trust Co.,. the Water vIiet Hydraulic Go. and the City Guar antee Title & Deposit Go.
 An attempt on the part of Attorney Finklestone to ascertain if Chamber lain had not acted in an advisory car pacity in the matter of carborundum Investments in Canada were frustrat- ed by the witness who showed that this matter was taken care of by his former partner.
 Knapp acknowledged working for the appointment of Chamberlain as he was of the opinion that 1t would mean Between &75 900 and $1O0CO0 more to the creditors He denied that he had paid Chamberlain any retainer.
 An acrimonious note sounded at this naornzng hearing was struck when Attorney FInkelstone shifted his line of inquiry to the Fairlawn Farms, ask ing Knapp if he had listed this as an asset of the Burr 6 Knapp concern Knapp believed that this appeared on Econtract account. It then developed that the note Tor $10. 600 was deposited with the First Bridgeport National Bank made by Harvey D. Burr and endorsed by both Knapp & Chamber lain. It was done tas an accommo dation,' according to the witness, who was forced later to admit that he turned over s2O.O00 worth of Fairlawn contracts and gave an absolute deed to the property at the same time. Tn this transaction there was no verbal understanding as to what would be done with the property in the event of the note not being met, the deed simply being given.
 It appeared also that when the bank failed Knapp had but $50 in his pock- cts and that his trips were financed l later by the Georgia Loan & Trust he Is now supposed to be doing bust ness. While the money came through 1 the hands of Attorney Chamberlain it was denied that it was from him di- rect1y. or from the funds Of Burr & Knapp
 Knapp denied that Chamberlain had tgone to New York city and brought him back to this city but rather that he had called Mr. and Mrs. Chamber Jain to that city and brought them lback to Bridgeport.
 When Attorney Finkelstone attenapt- led to show that Chamberlain yesterday testined that the note had been pur- chased and that he had H. B. Burr endorse 1t while 1t now appeared that H. .. Burr made the note and Cham
 berlatn and Burr 6 Knapp endorsed lit, Attorney Chamberlain roundly SCOT led his brother attorney, stating that l it was a new experience to have a lawyer come into the court and detail matters talked of in ordinary con- ] versation, to which his opponent re- piled that he would expect the same things told in confidence to be re- jpeated upon a witness stand under oath. Referee Banks here put an end to the controversy by ruling that only matters of record be brought before the hearing.
 s In summing up Attorney Finkel- lstone protested against the, confirma- I ton upon the grounds that Chamber lain through the firm of Chamberlain & Hull is still attorney for the bank lrupt concern, that they are interested in many concerns and that their social and business relations are closely in I tervoven.
 Referee Banks confirmed the ap- l poi1tment Of Chamberlain as trustee upon the ground that he represented I the creditors interests and that by 8
 vote of 424 against 15O votes for c. s. Canfe1d and 26 for The American I Bank & Trust Go. The creditors know ] ing. Of the close relationship between
 the two men had sufficient confidence I in Cham ber1ain to give him this large
 majority, he pointed out. and added, sH that the redress of the minority cred- itors was in an appeal to the circuit court judge, notice of which was en-- tered by Attorney F'fnkelstone.
 Bonds were set at $1o0,O00 for the
 trustee who said that he hoped to re-
 cover at least that amount of money
 for the creditors while attorney for
 the minority creditors was willing thai
 it should be fixed at S50,OO0. Permis g
 sion was given to maintain one as
 sistant and an office to close up the af. fairs Of the concern.
 -AIDESREA;1J- WALKER