The Bridgeport evening farmer., 1917-01-04
CHAMBERLAIN'S
ANSWER FILED
IN u, s, court
Makes General Denial of AL
legations BY Petitioners
For Removal.
INSTRUMENTATION TO
BLAME, HE ASSERTS
Claims He Had No Direct
Dealings AS Counsel for.
Burr & Knapp.

John C. Chamberlain, against
whom a petition for removal as trus-
tee of the bankrupt firm of Burr &
Knapp has been filed in the United
to petitioning creditors wherein he
generally denies the allegations.
Chamberlain again asserts to the
court that he has had no direct deal
ings as attorney and client with Burr
& Knapp, except where they were
nominal parties, but not the real par
ties in interest, and that he has not
charged them for services or receiv-
ed cent of pay from them.
In the charge of Misrepresentation
in the transfer of the Fairview lawn
property Aug. 26, 1914, which was
alleged to have been determined by a
deed rather than mortage convey
ance, it is specifically denied that this
was a mortgage" transaction or that
the law has been correctly set forth
to the court in the complaint.
1t is specifically denied that infor-
nation was refused responsible bid
ders at the time of sale, that the re-
spondent raised the bid to $4,000 and
that no cash was paid.
That the business today is not as
valuable as considered in some quar-
ters is set forth in a paragraph
which states: 'The insurance busi-
ness of Burr & Knapp was not sc
marketable as an ordinary insurance
business earning the same premiums
because it was largely based on Burr
& Knapp's mortgage business and in
surance bidders had merely to ex-
anime the land records of towns
where Burr e. Knapp were known to
loan money secured by mortgage on
real estate there, to learn the date of
te insurance expirations."
Answer to the charge that when
Burr & Knapp were insolvent the
firm turned over without any consid-
Grafton to E. Louise F. Knapp, go
shares of stock of the Title Guaran-
tee & Trust Co., which might have
recovered by the trustee is found in
this statement:
''Some years before Burr & Knapp
went into the hands of a receiver, the
respondent had been informed that
Burr & Knapp sold to E. Louise F.
the Title Guarantee & Trust Co., In
return for which they received a val
liable consideration of greater amount
than the stock was worth, and three
times what the stock cost Burr &,
Knapp"
Chamberlain asserts that Burr e.
Knapp at no time had title to Fair
view lawn but that one Richardson
had a contract with the owners and
that he then made contract with
Burr & Knapp under which they
were to finance the purchase of the
property by Richardson, the title re-
manning in the name Of the tfustee,
Richardson, and Burr & Knapp to
share in the profits. It is contended
that in consideration of Chamberlain
endorsing the $4,000 note in ques-
ton, although he has collected $500
under the assignment, he is neverthe-
less liable to the bank for the diff
ference by reason of his endorsement.
In the instance of the Watervliet
Hydraulic Co. note made the subject
of third count in the complaint, the
trustee demurs because it does not
set up any conduct that may be
blamcworthy and because if he, as
trustee Of the estate, had mingled the
proceeds of the notes with the assets
of the bankrupt estate, he would
have been guilty of embezzlement.
That the insurance business of
Burr & Knapp is not the profitable
asset that it is contended to be is
made plain by the respondent who
asserts: "The mortgage and rent col
lecting business of Burr & Knapp
was not an asset that, could be dis
posed of by sale, for at that time
there was no good will Of Burr e
for which any person would
pay a valuable consideration. A
large part of the mortgage and rent
collecting business went to other par
ties, and only a portion thereof went
to the Title Guarantee & Trust Co.
and so much as did go to said COM
pany went largely because the COM
pany engaged the services of a num-
ber of the Burr & Knapp clerical
force.
In the transaction on the ELY note,
charged as wrongfully con-
verted Chamberlain cOnstructively
shows that while Burr may have been
guilty of the misappropriation no evil
dence has been presented which will
connect him with wrongful conduct
in the ira nsa ction.
That the creditors of the Burr &
Knapp estate have been caused any
loss by reason of the trustees connec-
ton with the Georgia Loan & Trust
Co. is explicitly denied at length with
this conclusion: "The Georgia Loan
& Trust Co. is solvent corporation
doing business the same as formerly,
and none Of said claims have been out
lawed, and if any person had any
claim as alleged he still has opportun-
ity for full reimbursement against said
Hearing before Special Referee
Carleton F.. Hoadley will begin in this
citv'at 10 o'clock tomorrow morning
in the county court house and Cham
berlain. when seen at his offices by a
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