On motion duly made and seconded the Treasurer's report was adopted and filed.

ANNUAL ADDRESS OF PRESIDENT CHAIRMAN: At this time it is customary to have the annual report of the President. PRESIDENT GREVE has sent in his report which will be read by the Secretary. Fellow Referees:

When a year ago you conferred upon me the greatest honor within your gift naturally I looked forward to this day and this meeting as one of the most pleasurable occasions of my life. Conditions however have brought to me a great disappointment, my inability to greet you and to share in your work.

I am permitted to say but little at this time and therefore what I had hoped to be a serious consideration of the general situation can hardly be more than a few suggestions. I feel however that it is a great privilege to us to meet with The American Bar Association and to extend our greetings to them in the hopes that the meeting will be one of great value to the legal fraternity. I am one of those who feel strongly that the dignity and character of the legal profession is constantly improving. Despite a tendency at times of the uninformed to criticize I do not believe that at any time has our profession stood at a higher point or for higher ideals.

Coming directly to the matter of our own special interest it is obvious that we are upon the eve of much discussion, a discussion in my judgment attended with a great danger of losing in a large measure a distinct gain that was achieved by the passage of the present Bankruptcy Act and by its administration. Those whose memories go back to a period prior to 1898 cannot fail to be astounded that so much has been forgotten. The passage of the Act in that year brought about such an improvement in the administration. of insolvent estates that a practitioner of the later days can have no conception of the conditions as they then existed.

In my judgment the administration of the law has been one of the triumphs of the profession. The tendency to criticize even on the part of lawyers of the highest standing cannot be other than the result of insufficient knowledge. The investigation carried on with such fidelity and ability as to the conditions in New York naturally has attracted attention throughout the country. Those of us who have had the privilege of consultation and particularly those who sat in discussion last year realize the sincerity and thoroughness and fairness of the gentlemen in charge of that investigation.

I cannot but feel however that it is unfortunate that a condition that has not been shown to exist to any great extent throughout the country should give a false impression as to the general administration of the law and should threaten the loss of what we have achieved in the thirtytwo years experience.

The report of the committee of The American Bar Association on Commercial Law and Bankruptcy presents the matter in the main from the wisest point of view as I see it. While we may not and I do not agree with all of the conclusions reached in that report I do most emphatically believe that it would be (to quote that report) "a better

and more conservative course to continue the present system even admitting that it does not approximate perfection until such a modification of the law can be agreed upon generally as will square with the facts which have emerged from past experience." Constant agitation in favor of a redrafting of the law or amending it to meet some special condition in some particular place can but weaken it.

Such suggestions as are made by the Donovan report as to change in the liquidating officials in my judgment can be carried out by the Courts in each locality. Nothing can be gained and much may be lost by the establishment of a national administrative officer. The Courts are perfectly capable of taking care of the situation and should be allowed to do so. The changes should be in the direction of giving greater authority and greater dignity to the position of the referee which can be accomplished without any very great material change.

One point of view seems to have met with pretty general acceptance to which I feel personally called upon to dissent. I refer to the suggestion that the creditor-control theory has failed. If by creditor-control is meant the adoption of a New England town meeting plan in connection with the administration in no-asset cases in which there is nothing to control, the theory has fallen down, but on the other hand if creditor-control means that in cases where there is something of importance to control the creditors by properly accredited representatives administer the estates themselves rather than surrender the administration to some official at a remote distance I think the system has proved a success.

In my limited experience in cases where anything is involved creditors do take an interest and in the wisest way by the selection of well-trained thoroughly informed attorneys to represent their interests. In an experience extending over almost half a century I have come into contact with a number of departments of the law and I believe that it is not an extravagant statement to make that as a general proposition the attorneys who have given special attention to the bankruptcy matters and therefore more frequently appear in the Bankruptcy Courts measure well up to the standards of the profession in other depart

ments.

It is a relief and a cause of great satisfaction to have the assistance of lawyers who have prepared themselves for the special class of work rather than criticism of lawyers who are apt to speak from lack of information.

The scheme suggested for taking hold of the cases at the outset with the possibility of placing the entire administration in the hands of an officer selected by the creditors at the first meeting if desired seems in a large measure to meet the situation.

As to the recommendations in connection with matters of procedure, particularly as to shortening time, they are as I understand them very largely in accord with the point of view adopted by our own Association as outlined in the report of the Committee on Legislation of last year and in the one to be presented for discussion at this meeting.

It would give me great pleasure to be able to take up in greater detail the many points of interest but I am warned. that I must restrict my remarks to a small compass.

I am sure that by no body of men can the bankruptcy

law be handled with greater understanding than by our own membership. I look forward to great results in the discussions at this meeting and tender you once more my very great thanks for the honor that you have conferred upon me and my very best wishes for a most successful meeting. It would have been a great pleasure to me to be able to meet and shake each and every one of you by the hand. No relationship has given me greater pleasure. (Signed) CHARLES THEODORE GREVE,

Aug. 11, 1930. REFEREE JOHN M. ThornburGH, of Knoxville, Tenn.: In listening to the address of our President, I feel it contained several very pertinent observations. I wish to move that a copy of that address be sent to the Committee on Bankruptcy of the American Bar Association. They are considering bankruptcy at this meeting, and in view of the Donovan report, and MR. GREVE having been an active Referee since 1898, I believe the suggestions made in his address, which is short, might very properly be considered by the committee of the American Bar Association. I make that motion.

REFEREE CARL WILDE, of Indianapolis: I think the suggestion an excellent one. I do not believe that we could put in condensed form the ideas of this Association any better than PRESIDENT GREVE has done. May I amend the motion by adding that a copy be furnished to the press, as several of the reporters have asked for it.

MR. THORNBURGH: I accept the amendment. Carried.

REPORT OF COMMITTEE ON ETHICS CHAIRMAN: At this time we are to have the report of the Committee on Ethics, by REFEREE CHARLES A. BURNETT, of Lafayette, Indiana, Chairman.

MR. BURNETT: In view of the splendid work that is being done by the major committees that have been acting for practically four years, during the life of this Association, and in view of the fact that a Code of Ethics was adopted at the Buffalo convention, it has been far from my thoughts to feel that the work of this committee measured at all up to the work of the other committees. But when about three months ago I received a communication from our Secretary to the effect that I had been appointed chairman of the Committee on Ethics, I deemed that the Board at least felt that some consideration should be given to the question of whether or not the Code of Ethics as adopted at Buffalo should be amended, added to, or changed in any way.

Accordingly, immediately after the receipt of the letter from our Secretary, I wrote to the several members of the Committee, there being thirteen, a circular letter, calling attention to the fact of their appointment, and the fact that the Code of Ethics had been published in two of the numbers of our Journal, where they were available for their inspection, and asked for their suggestions. At the time I said I was without a suggestion to make, except that I felt that we, practicing under the Bankruptcy Law and under the Code of Ethics which had been adopted, could do the best work thereunder by familiarizing ourselves with the provisions of the several paragraphs of the Code of Ethics, and asking for suggestions to be made. that we might have a report to submit at this convention.

I notice that two of the members of the Committee are here. I will now refer to a letter I received from REFEREE MCLAUGHLIN.

I wrote twelve letters, and received answers from six of the referees, members of the Committee. One of the Referees said that he had no suggestions to make. Another one recommended no change. Another one made no suggestions. Another one made no suggestion as to amendments or alterations in the Code. One of the referees, Mr. McLaughlin, was kind enough to show that he had given thought to the subject, and I will submit as a part of the report the suggestions received from MR. McLAUGHLIN:

"(1) We find the Code of Ethics to be a masterly set of rules for the guidance of Referees, and highly commend. its authors and the national body for its adoption.

"(2) Since the Department of Justice does not act under a statute in dealing with office of Referees, we believe Article 5, Section B, could properly be amended to omit the words "as provided by law" appearing in the third line of said section.

"(3) That we adopt the following resolution: 'Resolved that the National Association of Referees in Bankruptcy earnestly request the members of the Bar of the Bankruptcy Courts everywhere to aid the Referees by conduct, precept and example, to apply the Code of Ethics adopted by this Association to the end that it may be recognized as embracing appropriate rules of mutual conduct of the Referees and Attorneys appearing before them.'

"(4) That the Referees should strive to mentally link the things they do, as they do them, with the portions of the Code of Ethics applicable to the act, and thus engross them on their memories for instant use.

"(5) Recommend that the Code of Ethics be attractively printed on heavy pasteboard or wood with hanging cord, and a copy furnished to each District Judge, and to each member of this Association."

The Code has been printed twice. It occupies a double page of the Journal. I do not believe it would do any good

to read it at this time.

I submit, as the report of the Committee, the recommendations that are embraced in the communication from REFEREE MCLAUGHLIN. There was one suggestion that a resolution be adopted, and I recommend that that suggestion be referred to the Committee on Resolutions.

I feel this personally, that the Code of Ethics, when it was adopted, had necessarily to be very general. It is also more by precept and suggestion than by positive rule or regulation as to the conducts of the referees and those with whom they have relations, and, therefore, I feel that it is best to leave a good code alone rather than to make many alterations in it.

For that reason, as chairman of the Committee, without having had previous conference with members of the Committee, I will state that it is my personal belief that the Code should not be amended, but, nevertheless, I think the suggestions that have been submitted should be referred to the Resolutions Committee.

Now, in order that the matter may be submitted to the Association for discussion, it is open for such suggestions as members of the Association may wish to make.

MR. FRIEBOLIN: I move that the report be referred to the Committee on Resolutions for action. Carried.

CHAIRMAN: The morning's program has been completed, with the possible exception of the appointment of committees. The Secretary has not yet made up his entire list of registration, and the committees will be named the first thing after the noon luncheon.

Second Session

MONDAY LUNCHEON

VICE PRESIDENT KING presided.

CHAIRMAN: When I was given the honor of presiding at this luncheon, it was not known or expected of course, that I should preside over our convention. It was our idea that this first luncheon should be a sort of a good fellowship luncheon, a sort of a reunion.

As a boy I was raised a Methodist. In the Methodist Church you can be saved and backslide and then they have a revival and save you again, and then they have a sort of experience meeting or reunion and everybody tells what has been done for them. So these various Referees are going to tell what bankruptcy has done for them. I think Jim Persons will be the main one along that line. A VOICE: Did he backslide?

CHAIRMAN: Well, if he has backslid he can be saved at this meeting. This meeting is called for the purpose of saving Jim.

For this noon's program, I tried to get the wisdom of our Conference as well as the wit. I think we are extremely fortunate in having with us a man who, as I said this morning, we all love, man whom we feel is one of us, and it is my very distinct pleasure at this time to introduce to you as our first speaker, the United States District Judge from Detroit, Michigan, the Honorable Arthur J. Tuttle. (Appause.)

JUDGE TUTTLE: Mr. Toastmaster, ladies and gentlemen: It is a real pleasure for me again to break bread at a table presided over by Referee King and his genial wife. I enjoyed my visit at Memphis and meeting with the Referees and this seems just a gathering of the old family circle to me. I might attempt to resort to wit and humor, except for the talent in that direction which is to follow, and knowing of their ability and my lack of it, I will not resort to it. I might have told you about the fellow that was making commotion in the back part of the Referee's Court in Detroit and the Referee wanted to know what the trouble was back there and he said: "I lost my coat," but the Referee replied, "Many a fellow has lost his whole suit in this Court, and did not commit any commotion of that kind." (Laughter.) But I am going to leave that kind of entertainment to those who are to follow, and in the few minutes that I have a right to take, I am going to illustrate the advantages which have come from this organization, of this association and meeting together of the Referees, by an example from nature, where, in recent years, I get all my illustrations. I like the outdoors so much and there is so much good and so little bad out there, that I would rather go there to get an illustration than any other place, and every Fall when I am about, looking for a buck in the

old cut over timbers of Michigan, I see here and there still remaining a group of pine, white pine and jacks, and I notice that if I see one of those trees that are growing out all alone by itself, a straggly sort of a fellow, it doesn't serve any value or purpose at all, but if I find a group growing close together there in the woods, you have got the tall, straight, valuable timber. The same way out on my old farm of my grandfather and grandmother, settled in the year Michigan was made a State and with some of the old virgin timber on it, and I go out and cut five twelve foot logs from one old tree, before I came to the limb or a knot. I sold 3,450 feet off one of those trees, and everyone of those trees grew close to the other trees in the forest but the old oak out in the field was growing all alone, there was not anything around it, and it is of no value. The limbs grew out and drooped down and it is rough and of no account. I can imagine how those good old oaks and pines grew out in the dense forest, surrounded by the other trees, and during the years, I can imagine how they complained as they shot out a branch here, low down, because some other neighboring tree rubbed against them and would not allow them to grow in the way they at first were inclined to grow. I can hear the old oak saying: "I want to shoot a limb out here, but you won't let me." And they had to grow straight up. There is the only place that you find any timber, out where there are a lot of trees around, and even the modest old beech that grows near to the oak, serves a useful purpose and serves a valuable purpose.

I can imagine that if Edison had grown all alone, surrounded by savages and just his intelligence and his ability, that these lights would have been very different. While he has been the great inventive genuis and mind that produced what we have in electricity today, there were dozens of others whose ingenuity and genius changed and brought about the present results. And Ford never alone would have produced his Model T, if it had not been for others, the Dodges and the Couzens and many others, who contributed to it and kept him from doing this and doing that. Why, we do not know if he would have changed his model T to his beautiful present model, except from interference from others that drove him over into that, and so all the way along in life, it is a worthless thing that stands out all alone and develops. The man that is worth while is the one that comes close to his fellow man and gets the good that comes from that, if they even prevent him from doing the things he wants to do, and yet, the result is something better than would have happened for both of them or all of them. That is what happened to the Referees. Four years ago you were growing in your own way, not being helped by anyone else, not being interfered with, putting out a branch here and a branch there, suiting yourself, like the tree growing alone, but the result was not as valuable as it should be and the service not as great as it should be, and you formed this organization and you brought yourselves closely together, and I see you here now, as I visualize those beautiful, fine pines growing together, each in the company with the other, up in the north woods of Michigan. You get a notion and some other fellow fights it; keeps you from putting a limb out that would be no good for anything, and you run against each other. You work together, you get the help that

comes from each other, and the result is much better for you, my friends. The whole world is that story told over and over again, that any individual working alone is not so good as he is working with friends.

That has been one of the troubles with our judiciary; that they isolate themselves from all of the rest of the world and set themselves up away from the rest of the world. There are certain things where it is proper to do that, but there are other things that make it unethical to do that. They are likely to grow out a limb here, which does no good except to make a knot in the bark. It is by associating together that the greatest good is accomplished, and you, through this association, have, in my opinion, accomplished very much along that line, and for that reason I personally want to thank you very, very much for the many, many courtesies and kindnesses, the much help you have been to me, and I do not say that just because I am here today, but I have enjoyed my association with the Referees in Bankruptcy very, very much, and I feel that I have received much in return and that I have contributed something to you in this way and only in this way; that I have given to you and your Association two of the finest chaps in all of Michigan, when I brought into the Referees in Bankruptcy, and in return you have them as associates, George and Paul. (Prolonged Applause.)

CHAIRMAN: I am sure we all feel very grateful to Judge Tuttle for his inspiring remarks. It is not only a pleasure but an inspiration to have him with us and we hope that as long as our conference exists that he will be with us.

I don't know whether you all know it or not, but the only reason that we held this conference this year at all, was to try to save Jim. Those of you who have sat in on the Committee on Uniformity, have found out what a thorn in the flesh he has been to Chairman Paul King. He is a bolshevik right, but we are going to give him one more opportunity to show that he has duly repented, and he will now enlighten us on the proposition as to what bankruptcy has done for and to him. Mr. Persons of Buffalo, New York. (Applause).

MR. PERSONS: Charles, I see a change in my topic. I was asked to speak about the hot weather in Chicago. I have prepared a manuscript at some length which I thought was suitable to the occasion, but the weather has changed. However, I will try and use up the time allotted to me. I understand we began a little bit late, there are thirty-five minutes left and the other speakers want two or three minutes.

The combination of what Judge Tuttle has just so beautifully said to us, together with the stammering introduction of the presiding officer, leads me to believe that I am making Paul into an oak. It may be a struggle when I get through, but he is going to be an oak. He has been practically fairly well finished as far as being wood on top, for the start, but there hasn't been real sound timber of oak, but we are working on that. Really, it is kind of tough to come in here and talk, from my point of view. I talked continuously yesterday morning, by the time. they use here until 12:30 last night, or this morning, and also the time that I used in an effort to make this oak, and we have succeeded to some extent.

I am somewhat embarrassed. I don't know just where