In re Anson Mercantile Co.
| Decision Date | 01 February 1911 |
| Citation | 185 F. 993 |
| Parties | In re ANSON MERCANTILE CO. |
| Court | U.S. District Court — Northern District of Texas |
Harry Tom King, for Walker Smith Grocery Co.
Dallas Scarborough, for trustee.
At the first meeting of the creditors of Anson Mercantile Company bankrupt, Victor H. Anderson was appointed trustee of the bankruptcy estate. Walker Smith Grocery Company, one of the creditors having a provable claim against the estate objected to the approval of the appointment of Victor H Anderson as trustee, on the grounds hereinafter set forth. The referee in bankruptcy approved the appointment of this person as trustee over the objections of this creditor whereupon it seeks a review of the action of the referee in this regard.
It is revealed by the record, and uncontroverted, that Victor H. Anderson, the person appointed trustee, was a stockholder in the H. O. Wooten Grocer Company at the time of his selection, and that H. O. Wooten Grocer Company is a heavy creditor of the estate, that said Grocer Company openly solicited other creditors of the bankrupt to send to it their claims to be used in appointing a trustee for the bankrupt estate; that it offered to handle claims sent it by other creditors free of charge to them; that said Grocer Company voted for the appointment of this person as trustee, and voted the claims of five other creditors for his appointment; that said Grocer Company now holds securities for a part of its debt against the bankruptcy estate, and held the same at the time of the appointment of this person as trustee; further, that this person is not only a stockholder in the H. O. Wooten Grocer Company, but is and was an adjuster, actively in the employ of said Grocer Company. It is also alleged by the Walker Smith Grocery Company that said Grocer Company held preferences at the time of the appointment of this person.
No question is raised here as to the competency of Anderson, the person appointed by the creditors to be trustee of the bankruptcy estate. The question is: Should the referee or judge, in view of his admitted interest in and employment by one of the creditors of the estate, approve the appointment? This depends upon the character of the duties he assumes and may be called upon to perform under the provisions of the bankruptcy act. When we consider that the law places upon him the duty of bringing actions for and avoiding unlawful preferences, and...
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Schwartz v. Mills
...election to those whom he must sue for restoration of the bankrupt's estate, In re Stowe, D.C.N.D.Cal., 235 F. 463; In re Anson Mercantile Co., D.C.N.D.Tex., 185 F. 993, this issue would clearly require adjudication before subordination can be settled. But surely when circumstances indicate......
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In re Paramount Publix Corporation, 234.
...had a common director with the bankrupt who from time to time had acted as attorney for the bankrupt. In the case of In re Anson Mercantile Co. (D. C.) 185 F. 993, the trustee elected was a stockholder and employee of a grocery company which had solicited creditors to send their claims to b......
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IN RE ALLIED OWNERS'CORPORATION, 25012.
...present choice on the objecting minority. "The election is therefore set aside, and a new election ordered." See, also, In re Anson Mercantile Co. (D. C.) 185 F. 993. These cases are not authorities on the facts, and are cited merely to show that prior business affiliations in at least two ......