courts of bankruptcy and as shall be prescribed by rules or orders of the courts of bankruptcy of their respective districts, except as herein otherwise provided;' and upon the application of the trustee during the examination of the bankrupts, or other proceedings, authorize the employment of stenographers at the expense of the estates at a compensation not to exceed ten cents per folio for reporting and transcribing the proceedings.

SEC. 39. Duties of Referees.'-a Referees shall (1) declare dividends and prepare and deliver to trustees dividend sheets showing the dividends declared and to whom payable:3 (2) examine all schedules of property and lists of creditors filed by bankrupts and cause such as are incomplete or defective to be amended; (3) furnish such information concerning the estates in process of adminis

'In the discharge of such duties as are contemplated by this subdivision of the section, the referee has authority to inquire into and determine the validity of contracts made by a corporation with its officers (In re Grubbs-Wiley Grocery Co. [D. C.], 1 N. B. News, 381; s. c. 96 Fed. Rep. 183), determine the allowance of counsel fees (In re Scotts [D. C.], 1 N. B. News, 326), issue injunctions and appoint trustees (In re Kilian [D. C.], 1 N. B News, 267), appoint appraisers and order property sold free of liens (In re Styer [D. C.], 98 Fed. Rep. 290).

As to expenses of administration of a bankrupt estate, allowance of attorney fees, etc., see 864b, and as to the appointment of trustees, 844 and Rules XV, XVIII, together with the notes to same relative to appointment of receiver pending that of trustee. In applications for a discharge referred to him, his authority is not limited to reporting the evidence, but he should report findings and recommendations (In re Kaiser [D. C], 99 Fed. Rep 689), but he cannot grant the discharge, and that duty cannot be delegated to him (In re McDuff [C. C. A.], 101 Fed. Rep. 241).

*For analogous provisions, see R. S. 24998, 5000, 5001; Act of 1867, 884 and 5. See also Rule II as to endorsing papers, Rule III as to blanks to be furnished referee, Rule X as to referee's authority to require indemnity for expenses, Rule XII as to references of cases to and scope of referee's authority, Rule XVI as to notice to trustee of appointment, Rule XXI relating to proof of debts, Rule XXII touching the taking of testimony, Rule XXIII as to arbitrations, Rule XXVI as to referee's accounts, Rule XXVII as to review of referee's action by the judge and Rule XXIX as to payment of money out of deposit.

"As to the declaration and payment of dividends, see §65 and notes thereto.

As to the contents of and duty of bankrupt to fill schedules, see $7(8) and notes thereto. As to the manner in which the schedule should be drawn, see Rule V; as to the duty of petitioning creditors to file, Rule IX; and as to the right to amend, Rule XI.

The schedules are not a part of the petition, and an adjudication in bankruptcy need not be postponed awaiting their amendments (In re Patterson, 1 Ben. 517; s. C. I B. R. 125).

tration before them as may be requested by the parties in interest; (4) give notices to creditors as herein provided; 2 (5) make up records embodying the evidence, or the substance thereof, as agreed upon by the parties in all contested matters arising before them, whenever requested to do so by either of the parties thereto, together with their findings therein, and transmit them to the judges;3 (6) prepare and file the schedules of property and lists of creditors required to be filed by the bankrupts, or cause the same to be done, when the bankrupts fail, refuse or neglect to do so; (7) safely keep, perfect, and transmit to the clerks the records, herein required to be kept by them, when the cases are 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.4

b Referees shall not (1) act in cases in which they are directly or indirectly interested; (2) practice as attorneys

1It is an offense for the referee to refuse parties in interest a reasonable opportunity to inspect accounts, papers and records relating to a bankrupt estate (829 [3]). The trustee must also furnish information ($47[5]). and the accounts and papers of both officials must be open to the inspection of officers and interested parties (849).

2See $58 touching notices to creditors.

See 842 as to the records of referees, and §2(10) relative to the duty of the court [judge] in regard to the findings.

*See $51a(3) and Rule XII[1] as to duty of clerk to transmit or deliver papers in matters referred to the referee. Proofs of claims and other papers filed subsequently to the reference, except such as call for action by the judge, may be filed either with the referee or with the clerk (Rule XX).

and counselors at law in any bankruptcy proceedings; or (3) purchase, directly or indirectly, any property of an estate in bankruptcy.'

SEC. 40. Compensation of Referees.2-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,3 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 which

The violation of the first and third subdivisions of this paragraph is an offense punishable under 829c. It has been held, however, that a referee is not directly or indirectly interested within the meaning of the Act when he acts in a case where he is a debtor to the bankrupt (Bray v. Cobb, 1 N. B. News, 209; s. c. 91 Fed. Rep. 102).

*For analogous provisions, see R. S. §§5008 and 5125; Act of 1867, §§4 and 5. See also Rule XXXV as to compensation of clerks, referees and trustees.

"The filing fee paid by a partnership bankrupt is all the fees required under the Act, notwithstanding that the members of the firm receive individual discharges, as all steps or actions constitute but one proceeding (In re Langslow et al. [D. C.], 98 Fed. Rep. 869; in re Gay et al. [D. C.], 98 Fed. Rep. 870). It has been held, however, in an opinion that seems inharmonious with both the terms and spirit of the statute, that for services rendered after the application for a discharge on an issue framed in opposition thereto, the referee is entitled to fees in addition to those provided for in this section (Fellows et al. v. Frendenthal [C. C. A.], 102 Fed. Rep. 731). The holding is based upon the conclusion that the referee in such case does not act in the capacity of referee, but as a special master. See 851(2) as to when a voluntary bankrupt is excused from paying filing fees.

"The commissions and fees provided for in this paragraph are not payable until the work of the referee is completed, and this stage is marked by the transmission of his records to the clerk (839[7]), after which the clerk pays the fee (851[4]). "A dividend in bankruptcy is a parcel of the fund arising from the assets of the estate, rightfully allotted to a creditor entitled to share in the fund, whether in the same proportion with other creditors, or in a different proportion" (In re Barber et al. [D. C., Minn.], 97 Fed. Rep. 547). The case cited further holds that referees and trustees are entitled to commissions on money paid on secured debts, a conclusion which other courts have been unable to reach (In re Slevin, 4 Dill, 131, Fed. Cas. No. 12,942; in re Sabine [D. C.], 1 N. B. News, 312; in re Ft. Wayne Electric Corp. [D. C.], 1 N. B. News, 301; s. c. 94 Fed. Rep. 109; in re Fielding [D. C.], 96 Fed. Rep. 800). The commissions must be computed by the per cent.; they cannot be "lumped” (In re Carolina Cooperage Co. [D. C.], 96 Fed. Rep. 950).

I

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.

SEC. 41. Contempts before Referees.—a A person shall not, in proceedings before a referee 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.+

For analogous provisions, see R. S. 4999, 5002, 5005, 5006; Act of 1800, 8814, 15; Act of 1867, 884, 5, 7.

"Where one is properly subpoenaed and refuses or neglects to attend, he can purge himself of the contempt by showing that he lives outside the State or more than one hundred miles from the place where he is subpoenaed to attend (See R. S. $876). The disobedience of an order requiring the bankrupt to pay over to the trustee money belonging to the estate will be punished as contempt (In re Purvine [C. C. A.], 96 Fed. Rep. 192; s. c. 37 C. C. A. 446; in re Tudor [D. C.], 96 Fed. Rep. 942; in re Rosser, Id. 308; in re McCormick [D. C.], 97 Fed. Rep. 566; in re Schlesinger, Id. 930; in re Mayer [D. C.], 98 Fed. Rep. 839; in re Deuell [D. C.], 100 Fed. Rep. 633; Ripon Knitting Works et al. v. Schreiber [D. C.], 1OI Fed. Rep. 810). One will not be guilty of contempt, however, for threatening to make a levy, where no levy, which would be contempt, is made (In re McBryde [D. C.], 99 Fed. Rep. 686).

A witness cannot refuse to attend, to produce books and answer questions relating to the subject of examination on technical grounds, though it has been held that if he refuses to produce books in good faith and by directon of counsel, he will not be punished for contempt (In re Fixen & Co. [D. C.], 96 Fed. Rep. 748).

This proviso, fairly construed, will allow the referee to examine and subpoena witnesses for examination outside the State, but not at a greater distance than one hundred miles from the place of his residence. If the distance is greater and an

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.'

SEC. 42. Records of Referees.2-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 kept in a separate book or books, and shall, together with the papers on file, constitute the records of the case.

c The book or books containing a record of the proceedings shall, when the case is concluded before the referee, be certified to by him, and, together with such papers as are on file before him, be transmitted to the court of bankruptcy and shall there remain as a part of the records of the court.

SEC. 43. Referee's Absence or Disability.3—a Whenever the office of a referee is vacant, or its occupant is absent or disqualified to act, the judge may act, or may appoint another referee, or another referee holding an ap

oral examination is desired, the court may order them to appear before any judge of any State court, and undoubtedly before any referee in bankruptcy within one hundred miles of the witness ($21a).

1If the court deems it proper, on a motion to punish the bankrupt for contempt, it may refer the case back to the referee to take such testimony as may be offered tending to purge the offense (In re Speyer, 6 B. R. 255).

2 For analogous provisions, see R. S. $5000; Act of 1867, §4. As to papers filed after reference, see Rule XX. Certified copies of these records are admissable as evidence (821d).

For analogous provisions, see R. S. 25007; Act of 1867, 84.