New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-04-26
OVERWHELMED BY LAWYERS FEES.
WINDING UpTHE OPEN BOARD OF BROKERS
A COSTLY APPEAL To THE COURTs-EXPENsE OF
CLOSING UP SOLVENT CORPORATION THAT DID

A COSTLY APPEAL To THE COURTS-EXPENSE OF
CLOSING UP A SOLVENT CORPORATION THAT DID
NOT OWE DOLLAR.
The Omen Board of Brokers is trying to close mp
its affairs and is in difficulty The chief struggle
lust now seems TO be between the members on one
side and the lawyers on the other, rs to which
should have the larger share OF the assets. APP
parently the odds are with the lawyers.
The Open Board was organized by large number
of Wall Street brokers' many OF whom had been
members of the Stock Exchange, They mad come to
believe that the Exchange was managed 100 much
as close organization. and that an organization
more liberal IN its methods could be made successful.
After the Open Board was organized, 1t was advised
bv counsel that to enable IT to buy real estate and
erect or equip building for its purposes separate
corporation should be formed similar TO that which
holds the real estate of the stock Exchange Ac-
cordingly the Open Board of Brokers Building
Company was Incorporated with seven trustees and
the stock subscribed and taken by the mem.
bers of the Open Board of Brokers. piece of
property was purchased in Broad-st., and the
Building Company proceeded TO fit 1t up. The
purchase price was $6O, 900. half of which was paid
n cash and the rest left mortgage. The
Open Board was not as successful as the members
had hoped, and soon disSens0ns arose. There were
many discordant clements, and there were frequent
outbreaks of strife. The trustees of the Building
Company were substantially agreed i'll thinking
that the plan of opera non was nnpractlcabe, and
that their work should stop. But the majority OF
the Open Board members did not agree with them
and thought they were gong on well enough
Some litigation had already grown out OF
this when the trustees made up their minds
TO wind up the whole business, whether the mem
beos of the Board liked IT or not They
therefore communicated with Attorney General
" ard and desired him 10 begin proceedings against
Them which they indicated their purpose not to
oppose except formally Mr. Benn was 10 act nom
InaIly for the Attorney General i'll the mat
ter suit was accordingly brOug ht
against the trustees. The Ostensbe ground
for the action was that the Building Company was
not carrying out the object for which 1t purportcd
to have been organized, namely, the erection OF
buildings. There was an appearance and perhaps a
show of opposition BY Sidney r. Harris IN behalf of
he RulldIng COmDdnV
fore Justice WestDTook for adjudication at kings
ton. There was even more IMAM TINS by ex-
open Board of Brokers. Justice Westbrook decided
in favor OF the Attorney-Oeneral and gave Judg-
ment accordingly naming Kastus :. Ransom, thc
former law partner0t President Arthnr as receiver
The decree IL the action which dissolved the cor
pOTation and appointed the receiver also awarded
counsel fee of 50 900 TO Mr.. Bonn for wha, hc had
done as the nominal assistant of the Attorney
General. This was the first lntlmatiOn that the
trustees had of the shower of lawyers bills that
soon was to pour upon them. l. staggered them
but as one OF them remarked recently we We're
IN for 1t then and helpless. What could we DOR
The cOmpanys matters passed into the hands OF the
receiver. He disposed OF the real estate at public
sale. 1t had SO greatly appreciated Ill value that
what had cost 100000 was sold for $l35 900. The
litigation and difficulties sill continued and finally
the Open Board of Brokers was also dissolved and
Mr. Ransom appointed It's receiver hen the
lawyeTs bills began 10 come in. Mr. Harris who
had acted for the Building Company less than IA
wear, put bill for ia. OUO The question OF the
amount TO be allowed hum was sent to Is. Chctwood
as referee who has decided that he should receive
$4,000 This referee has bill for his services III
determining this question. All the other
lawyers representing other persons stock
holders also charged for attending the
reference In the action against the Open Board
OF brokers Judge Rowland appointed ref
cree lie was IL determine what were the debts of
the Board and who were entitled to the proceeds
coming 10 it, Some Of the members of the Open
BoarI had quarreled with Judge Fullerton and had
employed L. Y. Bell in his place Charles Mat
thcws represented certain stockhoidcr kuius +.
Andrews and Mr. Chase still Others. The re-
ceiver had also employed Mr. Potter as
his counsel, and had practically turned over
the legal matters TO his hands. Judge Fullerton
nut In a claim of $4,000 for his services. Mr..
Matthews asked 5000, Mr. Bell $500. Mr.. An