The Washington times., 1931-03-14
DOYLE,
PEYSER ARE
NAMED
Receivers of DefunCt Firm
File Report Monday; Quiz
of Officers Due Saturday
Continued From Page ~

clients have been unable to
decide to prove their claims, as
there is a question whether they
would forfeit their securities by
50 doing.
The receivers informed Fred j.
Eden, referee in bankruptcy
their report will be filed Monday
The first examination of the
officers of the bankrupt COM
pany is to be held at 1890 a. m.
next Saturday in the District
Supreme Court Building.
Courtroom Overlooked
The meeting was attended by
several hundred creditors, who
filled the courtroom to overflow
ing. 1t was an orderly gather
ing with one brief exception.
Announcement that Edmund F.
Rheem, vice president of the COM
pany, was present was greeted
with Kisses.
Proposal to examine Mr.. Rheem
today was rejected, the referee eX.
planning that the large number
of notes and properties involved
would require careful organizing
and series of examinations.
At the outset of this meeting,
Mr.. Eden explained those sections
Of the bankruptcy laws governing
the gathering.
Eden Asks for Action
A law provided that either one
or three trustees must be elected
at the first meeting of creditors.
He then threw the meeting open
for general discussion. It was
at this stage that attorneys rep
resenting various clients attemped
to postpone the election of truS-
tees. Mr.. Eden said:
1.-TWO months have passed
since the firm failed. If any,
= thing is to be realized, action
Is advisable now"
Five to Study Law
Following discussion of num-
erous angles which have already
arisen through suits filed in be-
half of holders of notes and other
creditors of the defunct firm, a
committee of five lawyers was
named to study various questions
of law affecting the expected
litigation and settlement of the
companyS accounts. This com
mittee is composed of Paul LeSh.
chairman: Louis Gutenberg, w.
W. Marlin, Edward Dunton and
L. H. Mercier.
The members of this committee
for attorneys representing num-
erous clients, but they have also
been charged with the task of
preparing and making available
opinions regarding the probable
legal effects which the filing OF
claims will have as regarding
secured and unsecured creditors.
Many Have Failed
While hundreds of creditors
have already proved" their
claims and thus qualified to vote
and to take part in the meeting
today, many others have failed
to do so through fear that filing
of their claims will mean the
waving of their securities.
Claims against the firm must
be filed not later than six
months from the date of bank
ruptcy, if creditors are to par
ticipate in the benefits of the
trusteeship.
Fear has been expressed by
some creditors that notes against
trusts against some of the prop
critics involved in the crash for
which they hold only receipts
may not be found in the vaults
Of the company.
Careful Study Needed
Although the report of the re-
ceivers to be filed Monday is ex-
pected to clear up many of the
questions those interested having
been asking regarding the accur-
acy Of the schedule of assets and
liabilities flied recently in behalf
Of the SWartzell. Rheem and Hen
sey Company, it is expected that
only careful study and compari-
son of the findings of the two
reports will disclose the actual fl
nancial standing of the company.
A schedule of general meetings
Of creditors is to be prepared by
the trustees. Notices will be sent
to those affected.
Because of the large number of
persons involved and the excep-
tionally large number of notes,
securities and properties affected,
1t is expected that a series of ex-
aminations of the officers of the
company will be arranged. Each
Of the examinations will be con-
fined to particular transactions
or properties.
Examination Is Delayed
It was in consideration of this
fact, as we'll as of the hostility
manifested toward Mr.. Rheem,
that examination of him as an
officer of the concern was not
held today.
Mr.. Rheem is at liberty on
$500 bond on an embezzlement
charge which involves a single
transaction made against him.
The Department of Justice is
still investigating the conduct of
the firms business and the posi-
bility that criminal prosecution Of
the officers may be eventually in
Stituted still exists.