effects upon the various business communities." [Emphasis supplied.]


34
5. A Referee Has Broad Powers in the Administration of a Bankrupt's Estate, Especially with Reference to the Selection Of a Trustee.

General Order 13 provided as follows:

35
"`The appointment of a trustee by the creditors shall be subject to be approved or disapproved by the referee or by the judge; and he shall be removable by the judge only.'"


36
The above order was abrogated on January 16, 1939, effective on February 13, 1939. From this abrogation, the appellees attempt to spell out a referee's complete loss of authority to disapprove the election of a trustee:


37
"It would seem, therefore, that although prior to February 13, 1939 (under conditions which will be hereinafter discussed, and which are wholly inapplicable to the case at bar), thecombination to make the selection. That was done in the present instance and the action of the referee is affirmed." [Emphasis supplied.]


59
8. "Not Honesty Alone —"


60
During the hearing before the Referee, counsel for the appellees made an offer of proof in connection with the testimony of an employee of the attorney for the San Francisco Board of Trade. Counsel proposed to show that the transmittal of the letter referred to above, "and its preparation in this form was at the express instance and request of the Creditors' Committee". It might be observed in passing that all the members of the Creditors' Committee were members of the Board of Trade.


61
Counsel also offered to prove that the proof of claim that accompanied each letter was prepared by the witness and