Charles Seligson, Trustee in Bankruptcy of Ira Haupt & Co., a Limited Partnership, Bankrupt v. Lester William Roth

Appellant is trustee in bankruptcy for Ira Haupt & Co., a limited partnership, which operated a general brokerage and commission business until forced into bankruptcy in the United States District Court for the Southern District of New York on March 23, 1964. In the Matter of Ira Haupt & Co., a Limited Partnership, Bankrupt, 234 F.Supp. 167 (S.D. N.Y.1964). Immediately before going into bankruptcy, Ira Haupt & Co. (hereinafter “company”), with its main office in New York City, had 16 general partners, 13 limited partners, approximately 700 employees and branches throughout the country. 234 F.Supp. at 168 . On November 20, 1963, as a result of financial shortages occasioned by its dealings with Allied Crude Vegetable Oil Refining Co., the company was suspended from further operation by the New York Stock Exchange. Five days later, after a determination that company’s capital deficiency was approximately 20 million dollars, company’s creditor banks and the Exchange advanced a proposal for the “orderly liquidation” of company, which was accepted. Id. The district court which conducted proceedings on company’s involuntary petition for bankruptcy found that, “Haupt was hopelessly…