Los Angeles daily herald., 1876-02-23
A Comparative Statement.

A Comparative Statement.
A great deal of special pleading has
been done in favor of leaving the es-
tate of TEMPLE & NORMAN, for set
tlement, in the hands of the assignees
selected by the firm. That these argu-
ments are but special pleadings made
by those who are indebted to the cred
itors of the bank, and made for the
sole purpose of avoiding settlement,
we have heretofore shown. The HER
AID has maintained that, aside from
peculation and unfair dealing, the as
signee process was far more expensive
and protracted than that of the bank
ruptcy court, and now We propose to
prove the correctness of our position
by a comparative statement OF the
cost of the two methods of settling an
estate. Under the Bankrupt Law.
(see section Al of amended bankrupt
law, the clerk of the United States
District Court takes such reasonable
fees as are allowed by law or the order
of the court. The Registers allowed:
For the 90
" each day on which meeting of cred-
itors Is held 00
every order for u d1vldend................5 ) 90
" every order of cOur 20
every bond with securities...-............ = 90
The marshal or messenger is entitled
| to S2 for serving warrant ami five
cents per mile each way as travelling
expenses. Also ten cents for each no.
tice to creditor. III all cases of bank
ruptcy the creditors or Il majority OF
them appoint the assignee to take
charge of the estate, collect the debts,
sell the property and pay dividends to
the creditors. He is required to give
a bond with securities approved
by the court. He is constantly
subject to the jurisdiction and
order of the court. He must
sell all property at public sale, and in
such way and manner as the Court d-
reefs, in order to realize therefrom the
greatest amount of money for the
creditors, and all his acts are subject
to the revision of the Court. He is
not allowed to sell property at private
sale, because private sales, if allowed
by law, would often be productive of
fraud and injury to creditors AS
signees in bankruptcy are allowed the
| following fees:
| Commission on all sums received and
| paid out not exceeding Sl,000........5 per ct
| On all sums not exceeding S5,000....~2la 4"
On all sums over So 5W0........................I
Under the bankrupt law the assignee
has right to employ at reasonable
compensation competent lawyer to
advise and assist him III the prosecu-
ton Of suits, or in defending a claim
against him. But in no case would
the Court permit him to employ eight
or ten lawyers to eat out the heart Of
the estate and leave the shell for the
creditors.
the one by which it is sought to melt
away the estate of TEMPLE & Work.
MAN, and leave the deceived and
wronged creditors as poor as if the
bank had been without a shadow of
assets. Under the Code the assignees
are not under the order or jurisdiction
of any Court. They can sell property
at public or private sale and at such
prices as they see fit. They have free
and full liberty to do with the estate
just as they please, and ifcreditors are
agrieved or injured they are driven to
commence original proceedings in the
Courts and prosecute at their own ex-
pense, while the assignees have the
entire estate of the bankrupt to back
them in the employment of lawyers
| and the payment of costs. Under the
Code the assignees of TEMPLE &
WORKMAN are entitled to the same
commission as executors and guardi-
| ans (see code of civil procedure,
section 1879, which are as follows:
On the first 81 ,OO0.. ~ per cent.
| On all sums above s 900 and not
exceeding 0000.........................5 "
| On all sums over $40 000O..................4 " +"
In addition to this they are allowed
ali necessary expenses in the care and
management of the estate. Suppose
| the assignees of TEMPLE & WORKMAN
collect on the estate the sum of $780,
900, their fees and expenses will be
| about as follows:
| On first $1,000 at per cent............s 20 60
On first $4,000 at per cent-............ 800 0O
On S7S90 at per cent................ 81 560 90
| Cost and expense of management. 20, 600 90
| Fees of ten lawyers for say two years
at S5OVo per C0OO0 %
SllZ, I3U w
Under the Bankrupt Law the cost
of collecting SsOO,0OO would foot up
| about as follows: