concluded; (8) transmit to the clerks such papers as may be on file before them whenever the same are needed in any proceedings in courts, and in like manner secure the return of such papers after they have been used, or, if it be impracticable to transmit the original papers, transmit certified copies thereof by mail; (9) upon application of any party in interest, preserve the evidence taken or the substance thereof as agreed upon by the parties before them when a stenographer is not in attendance; and (10) whenever their respective offices are in the same cities or towns where the courts of bankruptcy convene, call upon and receive from the clerks all papers filed in courts of bankruptcy which have been referred to them.

b. Referees shall not (1) act in cases in which they are directly or indirectly interested; (2) practise as attorneys and counsellors at law in any bankruptcy proceedings; or (3) purchase, directly or indirectly, any property of an estate in bankruptcy.

The first dividend must be declared within thirty days of the adjudication, if there is money enough to pay all debts which have priority and five per cent on all claims which will probably be allowed.1 The second dividend is to be paid when there is money enough to pay 10 per cent on all allowable claims.2 The referee must prepare a dividend sheet and transmit it to the trustee.3

By a comparison of § 7 (8) with clauses 2 and 6 of paragraph a it seems that the referee is to have supervision of the preparation of schedules and cause them to be filed in case the bankrupt neglects to do it. In case an involuntary bankrupt is absent or refuses to file his schedule, the petitioning

creditors are to file it, or they may have an attachment against a debtor who neglects to file his schedule after notice.1

Besides the duties enumerated here the referee is to preside at the first meeting of creditors.2

The phrase "parties in interest" means all persons whose rights are affected in any way by the bankruptcy proceedings.3 The referee is required to give ten days' notice by mail to all creditors of examinations of the bankrupt, applications for a composition, meetings of creditors, sales of property, dividends, filing of trustees' final accounts, compromises and the proposed dismissal of the proceedings. He must also publish notice of the first meeting. The clerk is to give notice of applications for discharge. The notices are to be sent to the addresses contained in the depositions accompanying the proof of debts unless the creditors shall request the referee to send notices to some other address. If any creditor has not proved his debt, notice shall be sent to the address appearing in the list of the bankrupt's creditors.8

6

The person desiring a review by the judge of any question decided by the referee shall file a petition setting forth the error complained of. The referee shall then certify to the judge a summary of the evidence, the question, and his finding thereon.9

Besides the duty imposed by clause 7 of transmitting the records to the clerk, the referee must file with him a list of the claims proved against the estate.10

It is provided by Rule XXII. that the referee may take down the testimony of witnesses in the form of a narrative unless he determines that it shall be by question and answer."1 As to the manner of taking testimony see supra, § 483.

The referee must notify a trustee of his appointment. The notice should contain the amount fixed as the penal sum of the

1 Rule IX.

2 Act of 1898, § 55 b, infra, § 518.

8 See supra, §§ 475, 477.

4 Act of 1898, § 58.

5 Ib.

6 Form 57.

7 Rule XXI. 2.

8 Act of 1898, § 58.

9 Rule XXVII.

10 Rule XXIV.

11 Rule XXII.

trustee's bond, and require the trustee to notify the referee forthwith of his acceptance or rejection of the trust.1

All orders made by a referee must state whether they are made by consent or after notice and a hearing. The manner of giving notice must be stated, and that no adverse interest was present at the hearing if that be the fact.2

The referee shall keep an accurate account of his travelling and incidental expenses and of those of his clerk or officer attending him in the performance of his duties. He shall make a return under oath to the judge, with vouchers whenever possible, on the first Tuesday in each month.3

A referee may be punished by fine and forfeiture of his office if he acts in a case where he is interested, or purchases any part of the estate of which he is referee, or if he refuses to allow an inspection of his accounts if the court orders it. There is no punishment prescribed for a referee who acts as an attorney in bankruptcy proceedings. It has been held that a referee is not disqualified from acting under the terms of paragraph b, clause 1, because he owes the bankrupt a debt.5

§ 503. Act of 1898.-SEC. 40. COMPENSATION OF REFEREES-a. Referees shall receive as full compensation for their services, payable after they are rendered, a fee of ten dollars deposited with the clerk at the time the petition is filed in each case, except when a fee is not required from a voluntary bankrupt, and from estates which have been administered before them one per centum commissions on sums to be paid as dividends and commissions, or one half of one per centum on the amount to be paid to creditors upon the confirmation of a composition.

b. Whenever a case is transferred from one referee to another the judge shall determine the proportion in

1 Rule XVI.

2 Rule XXIII.

8 Rule XXVI.

4 Act of 1898, § 29 c.

5 Bray v. Cobb, 91 Fed. Rep. 102.

which the fee and commissions therefor shall be divided between the referees.

c. In the event of the reference of a case being revoked before it is concluded, and when the case is specially referred, the judge shall determine what part of the fee and commissions shall be paid to the referee.

In addition to the compensation provided by this section referees may be allowed their travelling and incidental expenses incurred while performing their duties under the act, if approved by special order of the judge. Referees are required to file under oath a monthly account of such expenses.2 Referees as well as clerks and marshals may demand indemnity before incurring expense.3

Only one fee can be demanded on a partnership petition, since it is only one entire proceeding.

§ 504. Act of 1898.-SEC. 41. CONTEMPTS BEFORE REFEREES.a. A person shall not, in proceedings before a referee, (1) disobey or resist any lawful order, process, or writ; (2) misbehave during a hearing or so near the place thereof as to obstruct the same; (3) neglect to produce, after having been ordered to do so, any pertinent document; or (4) refuse to appear after having been subpoenaed, or, upon appearing, refuse to take the oath as a witness, or, after having taken the oath, refuse to be examined according to law: Provided, That no person shall be required to attend as a witness before a referee at a place outside of the State of his residence, and more than one hundred miles from such place of residence, and only in case his lawful mileage and fee for one day's attendance shall be first paid or tendered to him.

1 Rule XXXV. 2.

2 Rule XXVI.

8 Rule X.

4 Re Langslow, 1 N. B. N. 232.

b. The referee shall certify the facts to the judge, if any person shall do any of the things forbidden in this section. The judge shall thereupon, in a summary manner, hear the evidence as to the acts complained of, and, if it is such as to warrant him in so doing, punish such person in the same manner and to the same extent as for a contempt committed before the court of bankruptcy, or commit such person upon the same conditions as if the doing of the forbidden act had occurred with reference to the process of, or in the presence of, the court.

A debtor will be committed if he disobeys an order of court for examination, but he cannot be punished for neglecting to attend unless his fees be tendered him.2

All commitments for contempt are determined in a summary manner, as it would interfere with the execution of the orders of the court if an extended trial were necessary in every case. There is no right to a jury trial in a case of this kind.3

The bankrupt cannot refuse to deliver his books of account to the trustee when ordered to do so by the referee. The fact that they may furnish evidence which will incriminate him is not a sufficient reason for a refusal. While a bankrupt may refuse to answer criminating questions, he can not refuse to take the oath.5

§ 505. Act of 1898.-SEC. 42. RECORDS OF REFEREES.a. The records of all proceedings in each case before a referee shall be kept as nearly as may be in the same manner as records are now kept in equity cases in circuit courts of the United States.

b. A record of the proceedings in each case shall be

1 Ex parte Clifton, 7 Morrell, 59.

2 Re Batson, 1 Manson, 45.

8 Cooley, Constitutional Limitations, 6th ed. p. 389, note 2.

4 Re Sapiro, 92 Fed. Rep. 340, 1

N. B. N. 136.

5 Re Scott, 1 N. B. N. 161.