The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-07-10

pIatiou Of law, sa far SIS his property is con-
cerned, the bankrupt is dead. He is no longer
entitled to control over it, or the distribution
of it. 1t is assets in the possession OF the
Court to be administered by the agency of an
assignee for the equal benefit of all credltors
not preferred and protected by liens-and such
lien creditors secured in their liens, as IN the.
case of an estate OF deceased lnsolyent. 10
every successful prosecution OF suit IN lnVol-
untary bankruptcy. the result IS, that the de-
fendant declared bankrupt is deprived OF MS
property, and it becomes an estate held for inc
benefit OF his creditors. The creditors petit
ton is inevitably in all such cases, substan-
italy creditors bill against deceased IN
solvent. Such creditor is the champion GER
tainly OF all creditors, who either az the time
of the suit OF after its successful prosecution
choose to avail themselves OF lts benefits.
They are at liberty at any time to come in
and profit by it. Shall they do so without max.
ing the equal contribution to the expenses OF
the suit las in our Courts Of Chancery), which
has secured them share in the bankrupts
estate? And shall the creditor, who has SIN
this CASEY rescued the estate, and MADE me
be alone excluded from the common benehs!
Shall he who is thus common benetactor be
made martyr and scapegoat! Snail ne
bear the whole burden and reap scarcely any
if any-beneft? Not certainly if the Bankrupt
Actls founded in justice, and its policy TO De
enforced.
There is very cogent reason why any SIN
gle creditor should feel at liberty to prosecute
without the fear of having his claim swallowed
ND by the expenses Of the suit, even when sue
cessfuI. The act cortemplates fraud as the
ground Of prosecution IN great variety OF
forms. Instant acllon by one creditor In
precise locality, separated from other credl-
tors and without opportunity OF counselling
with them,. is necessary for the efficient ad,
ministration.o of the law, and the protection OF
the whole body of creditors. To Salt for time
for consultation would, in numerous IN.
stances, be, to lose the golden moment and let
the fraudulent debtor go free. There should
promptly under such circumstances, On the
contrary, he should be permitted and invited
to play the part of champion OF those IN COM
mon interest with him; to become the guardian
Of those who, from ignorance or absence, can
not take care of themselves. How can this
be, when the paralyzlug thought IS ever pre-,
sent to his mind, that when he has maintained
the Justice Of the act and secured the beneh-
cent end contemplated by. it, he is to be pun
ished and not rewarded for his zeal, activity
and vigilance. ~,
THAT when he has brought conviction to the
fraudulent debtor, and rescued properly IN tne.
act of transition or the debtor, himself, IN the
pains and expenses, and others, and not him.
self to reap the full benefit OF labors and sacrt-
fees sanctioned By the act, and essential to lis
maintenance.
And let it be noted that it is only when
successful that the petitioning creditor can ask
lis fellow creditors to contribute any tnhing. I'M,
dens of defeat. It is onlyWhen successful tand
the creditors elect to Share in the benefits OF
his success, he asks them, in due proportion,
to share the cost Of it, and thus equalize the
benefit and burden. And he is paid out OF On
estate in which the banIrupt-as. in the case
Of an estate OFFS deceased insolvent--has no
interest. For as has been asald before. tae
bankrupt, so far as his property Is concerned,
is as o deceased insolvent. His properly mas
ceased to be his, and, henceforth, it is to be
administered as an estate.
q Another important consideration entering
intosthe determination OF this question is tnat
the measure Of the counsel fee is not left TO
counsel and client. Whether q fee should be
allowed and for what amolnt, 10 TO be deter.
mined By the court, and is question addressed
The Judge, in coming to his conclusion in
this matter, is aided by the fact that much OF
the labor tosbe compensated is done IN his
presence.
posed to be competent judge. =,
IF not fully informed, he takes counsel
through the proper officer OF the court, OF the
vnlue Of the whole services rendered, and does
not allow the fee unless satisfied that full value
| las been given in the service rendered.
The estate of the creditor is thus protected
against any possible sinister speculation OF
client and counsel, or any innocent fanciful
valuation that counsel might attach to their
services, and clients might be disposed to al
low, if permitted, without restraint, to tax the
estates Of bankrupts.
Upon very full consideration, and after much
l,deliberation, it is ordered that the report OF
| Mr.. Register Clawson be confirmed.
1t is also ordered that he report to the court
what, in his Judgment, is proper counsel fee
| in this case, and that il there is any doubt up
On the amount, that he take evidence upon
the question, and submit with his judgment
| to the court.
[Signed] GEORGE 5. BRYAN,
United States Judge District of S. Carolina.