The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-06-21
UNITED STATES DISTRICT cous1-lH BANKRUPTCY.

Important Question to the Cost Of Prepar.
ing Petitions and Schedules-Can Legal Ex.
penses in Bankruptcy be Paid Out Of a Bank.
rupt's Assetse
Before Judge Blatchford.
IN the Matter OF Louisa Hirschberg-This case is
before Register Williams. 1t has been certified to
Judge Blatchford for his decision on the following
facts-The bankrupt filed Her petition the 2sth OF
January, 1868, and was adjudicated bankrupt on
the 10th of the same month. Her schedule shows
trade debts to the amount Of 49, Of which debts
TO the amount Of $1,073 Al have been proved. The
assets OF the estate, after the assfgnee's and
other expenses have been paid, show q bal
ance OF 1882 30 to divide among the creditors.
In addition to the debts above mentioned the
bankrupt has inserted in schedule A No. the fol-
lowing debt to be paid in full according to the
provisions Of the twenty eighth section OF the act
MORRISON Lauterbach and Spingarn, New York city
attorneys $3.50 in January, 1885, for legal services
In preparing the petition and schedules and advice
in relation thereto" Messrs. Morrison have filed
satisfactory proof of their said claim. TO this claim
the creditors and their assignee object the ground
that the bankrupt ought to find means to pay the
expenses of her bankruptcy proceedings from other
sources and that the claim Is not for the fees and
expenses of suits and the several procedures In
bankruptcy under the act, within the meaning OF the
twenty eighth section On the other hand it is insisted
that the only unObectOnable course that lay open to
them was to put in their claim for services In fling
the petition, &C., and disbursements in the bank
ruptcy proceedings as Q preferred debt. The bank
IupI HdVIuS VI pdyInS uIleIn except OUT
the property which she was bound to surrender to
her creditors, they bound In fairness to deliver
all up in the first place and then claim to be paid for
their services and disbursements therefrOm. They
further state that their disbursements in the matter
have been over $780, and that 80 far at all events
whatever may be said as to their claim for services
their claim Is for costs in the proceedings allowed
priority by the twenty-eighth section of the act.
1t occurs to the Register to remark that the
conduct of Messrs. Morrison, Lanterbach and
Spingarn in the matter seems to have been consci-
entious, perhaps more tnan the ordinarily
pursued by solicitors in such cases. 1t is clear that
the funds from which the solicitor Is paid must come
from what should be the assets OF the bankrupt or
from his future earnings. In pursuing the course
here pursued the solicitor submits the amount of his
compensation to the court under the eye Of the credit
ors In the course ordinarily pursued he obtains his
compensation from the same fund.- the amount being
measured by the good feelings Of the bankrupt and
under some temptation to give him larger sum
than the creditors would sanction the court might
think a reasonable compensation. II the act will
bear this construction 1t would seem to tend to
better practice than that which 1t is believed now
generally prevails.
With respect TO the above, Judge Batchford de-
cides as follows
i do not think that the claim in question or any
part Of It, even to the extent Of the disbursements
embraced In It, is q claim to be paid in full under
section twentyeight OF the act The fees, costs and
expenses named In the first Of the five subdivisions
due to the Register, clerk, assignee and Marshal,
and not those incurredby the bankrupt due his
attorney In the proceedings for services disburse
ments in connection with such proceedings
Mr.. Henry Morrison for the bankrupt and Mr..
Albert Smith for the assignee.