Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-14
Postponement Is 0verridden
and PeySer, Blair and
Doyle Chosen.
WOMEN PARTICIPATE
IN VERBAL ATTACK
Questioning of Bankrupt Firms
Official Is Delayed An
other Week.

Overriding all efforts at postponement
creditors of Swartzel, Rheem & Hensey
bankrupt mortgage house, today elected
Julius I. Peyser, Henry P. Blair anc
Michael M. Doyle as trustees to take
over the affairs of the bankrupts.
The several hundred creditors gath
cred in District Supreme Court for the
meeting proceeded quietly until it was
learned that Edmund D. Rheem, vice
president of the firm, was present ir
the court room.
where Is He?"
This announcement was greeted with
scattered Kisses and cries of Where
is hep"
The fact that Rheem was present was
brought out by Fred j. Eden, referee in
bankruptcy, who inquired whether any
of the creditors desired to question
officials of the bankrupt firm.
A man in the back of the room asked
which officers were present, and the
referee replied that Mr.. Rheen was in
attendance. A score of those present
left their seats in an effort to locate
Mr.. Rheem, and a moment later 10 or
IL of them, principally women, started
kissing. They failed to locate Rheem,
who was in an ante room with his at
torney.
When it became evident that to pro-
coed further along this line might lead
to serious disorder, Mr.. Eden, upon the
motion of several attorneys, announced
that the questioning of Rheem would
be postponed until next Saturday.
Trustees Make Bond.
Mr.. Peyser and Mr.. Blair had for
merly served as receivers for the bank
rupts and Mr. Doyle as their counsel
The three trustees were placed under
100000 collective bond.
Maj. Peyser announced that the re-
ceivers' statement of the bankrupt
firms assets and liabilities would be
filed with the court Monday. 1t was
believed this report would show a rela-
lively small proportion of tangible
assets on hand.
A similar report, filed several weeks
ago by attorneys for the bankrupt,
however, listed assets in excess of La
bilities.
Efforts by several attorneys to post
pone the election of several trustees
were cut short by a vote of all the
creditors. In commenting on the ef-
feet of postponement, Mr.. Eden said
The only real asset of this bankrupt
are equities in real estate that may be
foreclosed at any time"
Therefore, the trustees, in my opin-
ion, should be elected at once so that
the assets of the company may be con-
served for the benefit of the creditors. y
Applause Greets Speech.
This statement was greeted by pro-
longed applause.
The three men subsequently unani-
mously elected were nominated by Mar
tin j. Mcnamara.
The principal effort to secure post
ponement was made by Attorney w
Gwynn Gardiner, who said he repre-
gated several million dollars worth OF
property upon which trusts had been
leased. He said he didn't know whether
to prove claims on behalf Of his clients
or not, and felt that the proceedings
should be postponed until the court
could pass upon the respective rights
of the several litigants.
Mr.. Eden asked him If he had proved
claim. When Mr.. Gardiner replied
that he had not, he was informed that
he could have no voice in a proceed
ing, as the law required all partici-
pants to prove claim prior to the
holding of a meeting.
Mr.. Eden said that only about 100
creditors had proved their claims.
Attorneys Hold Meeting.
At meeting of interested attorneys
following the election of trustees, a
- a. "a
trusts on the bankrupt's properties and
to determine whether holders of re-
leased notes should proceed to prove
claims or take independent action was
appointed.
This committee consists of Paul T..
Lesh, LoSis Gutenberg, E. G. Dunton,
Lucien MERCER and w. w. MILAN.
This committee, after completing its
study, will advise note holders free of
charge.
The meeting of attorneys was marked
by suggestions that the recent appraisal
OF equities in the properties was toe
high. Leon Tobriner, chief counsel for
the bankrupt, replied that the appraisals
were made as fairly as possible.
IF this adjustment Is handled prop
creditors are going to realize more than
they expect"
Maj. Peyser, who presided, said that
exclusive of released trust notes, the
total claims of creditors would not ex-
coed $4,000.
After the trustees have been quail
fed their first duty will be to
file with the court a report of the
firms assets and liabilities prepared
after an exhaustive examination by ac-
countants retained by the receivers.
When filed this report will be COM