New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1868-06-24
BANKRupTOY PRoCEBpINas.

alleauy DeShu' 1n6 llleSal aPPO1ntASAN
by Judge Durell of general assignee in
bankruptcy for his court, his failure to re-
quire of such officer any, or anything like
adequate bonds fc1 the faithful perform
ance of his duties, and his utter disregard
of the law in other proceedings in his
court are laying the foundation Of endless
litigation and trouble fer this whole COM
munity. 1t was to be expected that an I'M
bonded officer controlling vast sums of
money belonging to persons whom he does
not know, and who do not know him, would
turn the peculiar and immense advantages
thus Illegally given him to bis
own benefit. Mr.. E. E. Norton would
not come up to the standard of shrewdness
and unscrupulousness universally accorded
to him in this community if he did not fully
avail himself of the extraordinary oppor-
tunities which have been placed within
his grasp.
There is no occasion for surprise, conse-
quently, in the fact that complaints both
loud and deep are made that the fees which
he deducts from the assets in his hands are
outrageously exorbitant and unjust. In
one case, of very recent occurrence, so Wig
orous a protest was entered that Judge
Durell felt compelled to reduce the swelling
bill Of the general assignee up,odrd of
tro thirds of the amount charged The
reader may possibly be able to conceive
how.out of all'propOrtion the original must
have been.
As we have before remarked, great
evil and source of future trou BILE in
connection with these bankruptcy cases
lies in the Illegally of the mode of pro-
cedure. Reports already reach us that
dissatisfied parties arc preparing to contest
certain settlements on the ground that the
law has not been complied with in the
regular election of an assignee, and in pub
fishing the notices in each case after the
manner prescribed by Congress.
There is another grave omission and
gross illegality to which we have not before
adyerted, but which should receive the
most serious consideration. Section thir-
teen of the bankrupt law says:
The judge at any time may, and upon
the request in writing of any creditor who
has proven his claim, shall require the as
signee to give good and safficient bond to the
United States, with condition for the faith
full performance and discharge of his duties;
the bond shall be approved by the Judge or
Register by his Endorsement thereon, shall
be filed lCitb the record Of the case and inure
to the benefit of all creditors proving their
claims, and may be prosecuted in the name
and for the benefit of the injured party. If
the assignee fails to give the bond within
such time as the Judge orders, not exceeding
ten days after notice to MIN of such order
the judge shall remove him, and appoint
another in his place.
We are reliably informed that not in one
Of his six hundred cases has the General
Assignee given bond " for the faithful
performance and discharge of his duties.n
1t is rumored that since we called public
attention to his proceedings he has given
a sort of general bond for ten thousand
dollars; but when we consider the millions
OF property in his hands such a bond is
ridiculous, and an insult to this community.
Is it possible that the thousands of credit
Ors who have proved their claims" and
the hundreds of attorneys who are inter
ested in bankruptcy suits are satisfied with
the "moral responsibility of Mr.. E. E.
Norton: We think not Now that their
attention is called to the matter we believe
they will demand some more substantial
security. The law guarantees it to them
in each separate case, and that " the bond
shall be fled with the record of the ease.v
Can good and sufficient bond . be OBJ
tanned from one assignee in six hundred
different cases, involving many millions of
property, and each requiring separ-
ate bond? We think net. Does Judge
Durell think differently?
But there have been proceedings by the
general assignee which are wholly satside
Of any Fretense Of law, justice, or propriety.
and which are becoming subjects of general
conversation and comment, and will prob
ably ultimate in legal proceedings and in
vestigation. They are, however, Of so per-
sonal character that they are not proper
subjects for newspaper comment until they
come regularly before the courts. But
Judge Durell's Official proceedings, and the
oficial action Of his attaches, are proper
subjects for comment and criticism, and 20
these we shall refer until they are re-
formed altogether, or we have dis
charged our whole duty in the mat
ter. We are aware Of the great ex-
element among those who naturally fear
public exposure Of their illegal and
Ubiquitous proceedings. We fully recog-
nize the fact that all the appliances which
money and patronage and power can com
mand will be used to prevent the exposures
which It has been our duty to make. We
know that the general assignee and bis
confederates have made loud threats of
lawless and high-handed proceedings
against the REPUBLIckE. Butwe remember
that there Is limit TO ali endurance, and
that very soon an outraged people will
demand in tones reaching even to Wash
inEton that tie law and justice and pro
priesy shall no longer be Ignored in the
united slates district e0urs Of this State.
We also remember thst very soon Louisi-
ana viii have Representatives and Senators
IN ff,s.rn.nl-. -. 4.4nsH