Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-08
MUST FILE RHEEM
CLAIMS BY JULY e
Court Fixes Time, but Per-
mits Other Action for
a Year.

Noteholders of Swartzell Rheem q
Hensey Co., must file their claims by
July 26, but in so doing are not pre-
cluded from pursuing other special
rights and remedies which may be
found to exist for them against other
persons and property, provided such
special rights are exercised by July 26,
1892. .-
Justice Peyton Gordon today signed
an order, presented by Attorney George
e. Sullivan on behalf of IS lawyers
representing Eoteholders. to permit
payments an additional year after the
expiration of the time of filing in order
to determine whether they are secured
creditors Of the bankrupt firm or merely
general creditors, and whether they
should pursue other persons or property.
Law Fixes Time. -.
He explained that the court was not
being asked to extend the time of filing,
since the law makes 1t specific that all
claims must be filed before July %, but
the conditions of affairs of the bank
rupt do not permit counsel to advise
their clients within the specified time.
Henry p. Blair, one OF the trustees
OF the bankrupt firm, declared he feared
the order would have the effect OF ex-
tending the time of administration Of
the bankrupts estate.
Justice Gordon expressed doubt CT his
jurisdiction to sign the order. but stated
that if there were jurisdiction and he
refused to exercise it, serious injury
might result to notholders.
Swartzell Sues Rheem.
John N. Swartzell. 2725 Thirty sixth
street, for himself and as assignee Of
his brother Henry r. SwartZen, brought
suit against Edmund D. Rheem, former
vice president of the concern. yester-
day, asking for an accounting OF the
firms investments.
Concurrently, the first meeting of the
creditors examination of officers of the
bankrupt was adjourned sine die by
Referee Fred j. Eden when claimants
did not proceed with questioning which
has been in progress during the past
several months.
In the new suit, filed yesterday, the
plaintiff. Though Attorney Walter B.
Guy. declared that Rheem in 1925 exc
cuted two promissory notes, one for
Sl45, 900 and another for sl25,000, Civ
ing as collateral security stock of the
Swartzen, Rheem & Hensey Co.
Violation Charged.
The notes were to be paid in $4,000
lnStallmentS and the claim Is made in
the suit that Rheem received the in
stallments as a trust fund, to be in
vested in first mortgage bonds and, it
is charged. invested them in second
mortgage paper, in alleged violation 81
the trust
Swartzell asked judgment for what
ever is found due from the original
notes and from the investments of the
curtailmentS.
John and Henry Swartzell are neph-
ews of Luther Swartzell, former senior
partner in the brokerage house, who
retired from the business some time
before it went bankrupt. last January.
They held the two Rheem notes.
Referee Eden adjourned the credit
ors' hearing yesterday over the protest
of Marcus Borchardt, claimants at
torney, who asked that the meeting be
postponed only, rather than adjourned.
The referee. however. pointed out that
additional examinations may be held
in his private Office under section OF
the District code which permits sum-
moning of third party witnesses.
II also was said by counsel that q
second meeting of the creditors could
be called upon petition, if the need
should arise.