The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-02-18
EXCESSIVE FEES In RECEIVER
SHIPS. - t'fha'.' ni2'

Tho Glenham Hotel Failure-Appoint-
ment OF . Receiver and His Dishurse-
ment OF tho Funds-Hovv tho Money
Was GObblod Up by Lawyers-JudG-
ment Creditors Left Out In tho Cold
Suit to Compel tho Receiver and Coun-
sol to Disgorge Their Allowances. \,
In connection with legal prosecutions there is,
excepting not even Sherns' and Marshals fees,
more complaint of abuses In the matter OF re-
ceiverships than In any other branch OF litigation
A case In point has just been developed In an
action brought before Judge Van Brunt, holding
Supreme Court. Circuit. by James v. Schenck and
John R. Ryan, a. judgment creditors OF Messrs.
Miller Loeb, former proprietors OF the Glenham
Hotel, against D. r. Ingraham, Jr Ira Shatier and
Wilson Small.
requires but brief space to Se eptomze the ale
n Il sSagP HsG Of M f5 psp &e9s
Il HPs s ss asas sSSss
to them in the sum Of 1854 II. and that judg-
ment was obtained against them for this amount.
D. p. Peters,, and shortly thereafter Mr.. Miller
took the usual legal steps Incidental to winding
up the copartnershp Application was made "a be-
ceiyer. As pr. Peters was one OF the defendants
In these initiatory proceedings he was appointed
few days, when he was removed and D..
p Ingraham, Jr appointed in his place. The latter
appointment was made by the same Judge on the
goth OF December, 1859, and he held the position
till the 18th OF March, 1870. period. as will be
seen, OF about three months. On the last named
date ION motion OF Ira Shafer and no one appear
ing in opposition thereto"-so runs the Official
record-his accounts were passed and himself and
sureties discharged from all liability" upon their
BONDS. There came, as shown in the account rem
ss4l5 o. The following are the leading disburse.
ager, 81, soo" ara shaffer, as Counsel to receiver
81 300" IRA Shaner, as counsel to d. P. Peters,
for In
defendant Peters, $225" "Henry B. Morange. at
tornsy for deiendsnt Loeb: 1925" "John
so cSatserton as
$500" After this follows payments to
4Ss M
an excess Of payments over funds Of SIT o." The
plaintiffs the execution upon their Judgment hav-
ing been returned, wholly unsatisfed, make an
ATTACK ON THE ALLOWANCES. Iaa
This attack vas based on the following grounds:-
s9 81 s ae re
ceiyer to employ counsel; that his appointment Of
counsel representing the parties in the litigations
nature Of the matter In which the services were
rendered being before the Court by admission, and
the allowances being also admitted, and It appear;
his two counsel, involving necessarily an agree
men. between them, and such allowances having
in mid.voyage, the captain and crew appro-
priating the cargo instead Of forwarding 1t
to its destination, thereby becoming personally
liable. Upon this state OF facts was submitted that
the Court ought to decide that these allowances
were fraudulent, and decree such allowances to
be the property of the judgment creditors Of
Miller Loeb, rather than the property Of officers
of the Court, who claim the same under an order
collusive, and obtained In an action wherein they
and the parties to that record and they only, were
permitted to appear, and IN which, for all practical
purposes they acted rs Judges in their own behalf
Messrs. A. G. 4 NJ. H. Ellis appeared for plaintiffs
and Burrill, Davidson & Burrill for defendant.
Judge Van Brunt took the papers, reserving his
decision. i'4
"This case" lawyer In commenting on the case
narrated ''is complete verihcatiOn OF the truth
fulness OF Lord Brougham's definition or a lawyer"
what Ia that ?" ask ed another lawyer.
"a gentleman who rescues your estate from your
enemies and takes it himself" ..r