The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918. Page: 1,005
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IN RE WHITNEY
ceased husband's estate. It is her indebtedness for the value of what
she appropriated to her own use that is an asset of that estate.
The creditors, to whom she became indebted in her venture in the
saloon business, in the conduct of which she has become a bankrupt,
are entitled to have the funds derived from the sale of the assets used
in that business administered in bankruptcy. The business was con-
ducted openly and notoriously as the business of the bankrupt, and
even though she appropriated to herself assets, for the value of which,
in connection with the license, she was accountable to the court in
which her husband's estate was under administration, the creditors to
whom she became personally indebted have a primary right to have
the proceeds of the sale applied to payment of their debts incurred in
carrying on the business.
 The petitioner, John McGlinn Distilling Company, must be pre-
sumed to have acquiesced in the appropriation by the bankrupt, as it
appears by the transcript of the proceedings before the referee that
it presented and had allowed a proof of claim in the sum of $306.68,
incurred in this very business. It is not, therefore, in a position to
claim now that the business was conducted by the bankrupt for her
husband's estate, and not in her own right.
The claims of creditors are, as found by the referee, largely in ex-
cess of the assets, so that there will be no overplus to go to satisfy the
creditors of the husband's estate. If there were an overplus after pay-
ment of creditors, the remedy of the petitioner would be through
appropriate proceedings against the executrix in the orphans' court.
The order of the referee is affirmed, and the petition dismissed.
In re WHITNEY.
(District Court, D. Massachusetts. May 3, 1918.)
1. BANKRUPTCY =JD404(1)-DISCHARGo--FAILURE OF CREDITORS TO OBJECT.
Under Bankruptcy Act, 14 (Comp. St. 1916, 3998), the grant of dis-
charge does not lie within the discretion of the court; but the bankrupt is
absolutely entitled to it, unless it is shown he has committed one or
more of the acts which the statute provides shall bar discharge.
2. BANKRUPTCY : 407(1)---No IEFLSAL OF DISCHARGE WITHOUT OBJECTIONS
A bankrupt is entitled to be informed of the grounds on which his
discharge is objected to, and where no creditor filed specifications of
objection, nor did the trustee do so under Bankruptcy Act, 146(6) (Comp.
St. 1916, $ 9598), the court should not refuse a discharge on its own mo-
tion; the judicial power being exhausted by a suggestion that the referee
may direct a creditors' meeting to be called to consider whether trustee
should be authorized to file objections.
3. BANKRUPTCY e231-REFEREE-'OWERS OF.
The referee may undoubtedly direct that a creditors' meeting be called
to consider whether the trustee should be authorized to file objections to
the bankrupt's petition for discharge.
JFor other cases see same topic & KEY-NUMBER In all Key-Numbered Digests & Indexes
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The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918., legislative document, 1918; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38821/m1/1020/: accessed March 24, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.