In re Youtie

WOOLLEY, Circuit Judge.

The alleged bankrupt made an offer of composition to his creditors, a majority of whom in number and amount consenting.

The offer was referred to a referee for consideration and recommendation. After hearings, he reported against its confirmation on the ground that the bankrupt had failed to explain losses and deficiencies in his merchandise and fixtures, commenting, however, on the bankrupt’s dubious real estate transactions which, if inquired into and found illegal, would, he thought, greatly increase the dividends to unsecured creditors. On the bankrupt’s petition the…