In re Knox Auto. Co.
| Decision Date | 12 November 1913 |
| Docket Number | 19,064. |
| Citation | 210 F. 569 |
| Parties | In re KNOX AUTOMOBILE CO. |
| Court | U.S. District Court — District of Massachusetts |
Tyler Corneau & Eames, of Boston, Mass., for objecting creditors.
Charles G. Gardner, of Springfield, Mass., pro se.
This is a petition to review an order of the referee authorizing the trustee in bankruptcy to sell all the property of the bankrupt at private sale without notice to the creditors or prior approval of the court. The order also authorizes the trustee to sell at public auction, but to that part of it no objection is made. The property has been appraised at $1,682,000. The total indebtedness is about $1,265,000.
The order is objected to upon the grounds: (1) That it leaves too much to the discretion of the trustee, and (2) that it authorizes the sale of all the property and estate of the bankrupt, which it is said cannot be done under General Order XVIII.
As to (1):
'The discretionary power of the referee directing a private sale of a bankrupt estate ought not to be disturbed unless it clearly appears to have been improvidently exercised. ' Re Hawkins (D.C.) 125 F. 633.
The referee reports that he has entire confidence in the ability and impartiality of the trustee and believes it to be for the best interests of the estate that the trustee should be hampered as little as possible in disposing of the property. I see no reason to disagree with this conclusion. Some fear was expressed lest the trustee should sell the property without giving certain creditors and stockholders sufficient opportunity to buy. The trustee expressly disclaimed any such thought or intention. I have no doubt that he intends to use every reasonable effort to get the highest possible price for the property, and I agree with the referee that he will be in a better position if not hampered by formal orders as to what he shall do.
As to (2): Section 47 of the Bankruptcy Act, relating to the duties of trustees, provides:
'That trustees shall respectively * * * (2) collect and reduce to money the property of the estates for which they are trustees, under the direction of the court, and close up the estate as expeditiously as is compatible with the best interests of the parties in interest.'
General Order XVIII (89 F. viii, 32 C.C.A. xx) provides:
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In re National Grain Corporation
...the referee. In re Franklin Brewing Co., 249 F. 333, 161 C. C. A. 341; Wilson v. Building Ass'n, 232 F. 824, 147 C. C. A. 18; In re Knox Auto Co. (D. C.) 210 F. 569. The fact that the value of the real property to be sold was less than its recorded mortgages was not decisive, where the vali......
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