New Britain herald., 1914-04-16
We'll Known Bankruptcy Proceed- ings Opened by Referee Hoadty.
ATTORNEYS HAVE HEATED DEBATE
Bankrupts Claim That Spec1hca- tiOns Before the Court Were lrTeg- ularly Ffled.-Hearing Set for April A to Decide Legal Side.

New Haven, Conn.,, April 1b.-Ine we'll known bankruptcy case of Solo- way and Katz, wholesale grocers. which has already received more hours of attention from the referee in bankruptcy and the courts than any other case in recent years came up for the first time before Referee Hoadley, today. Nothing was accom- plished other than to have a date set for hearing one phase of the legal side of the settlement. The resump- tion will be on April "A.
 Two Companies Object.
 In this case the bankrupt firm filed a composition offer of settlement which majority of the creditors 'ac- cepted. The Bay State Milling com pany and the Star and Crescent Mill ing company filed specifications object ing to confirmation of the offer. MT. Shade of counsel for the bankrupts, filed objections to those specifications. and moved to strike them from the files. Referee Newton granted the motion and the creditors interested went to the circuit court where Judge Holt reversed the referees decision, and ordered the protesting creditors to file either amendment to the specif1- cations or new ones. This was i'm April of last year. MT. Slade went to the circuit court of appeals on this de- cisfon and was defeated. The new specifications were filed in February. On April MT. Slade filed objections to them The creditors lawyers had also obtained an order requiring the presence of the bankrupts for personal examination.
 When Referee Hoadley opened the case today the claim of the bank rupts was that the specifications before the court were irregularly filed. At torneys for the creditors denied this and claimed that they expected to be able to examine the bankrupts. The referee said that the question first to be disposed of was that as to whether the specifications of objections were regularly before him. MT. Shade maintained that there was nothing before the court; that the matter of the specifications had been decided by the circuit court. He was willing to ccncede that specifica tions had been offered but that the court had re- quired that they be filed within ten days. As this had not been done as required Referee Newton had struck them off when they were offered.
 Appeals to Referee.
 ''Your honor is not going to sit here and hear an issue when there is nothing before it,'' said Mr. Slade. There are no specifications and nothing to be heard at this time
 Benedict Holden of New York, who had arrived during MT. slade's argument to uphold his contention which had been opposed by Harry N. Burke of Manchester was asked by the referee is he would file a motion to have the, specifications admitted. Mr. Holden said he did not wish to do this as the specifications had been regularly fled As to the conten- tion of MT. Slade that there was a limitation of time within which the papers should be filed he said that there was no such limitation. He said that rules of practice in the United States court were generally followed in the state courts all over the country as we'll as in bankruptcy courts.
 Lawyers Become Excited.
 MT. Slade: This is new propo- sition in bankruptcy"
 MT. Holden: There's a new prop- osition in bankruptcy every time this case comes qp.''
 A warm and somewhat acrimonious debate followed between Messrs Hol- den and Slade during which Referee Hoadley threw, up his hands and re- marked: 'T had hoped this case would have reached an end before I was appointed"