The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-05-05
In the Supreme Court of the Ha-
Waiian Islands.
BEFORE DOLE, J.
In the Matter Of the Receivership
of the Union Iron Works Com
pany.
Receivers Petition for Confirma-
ton of Sale and Approval of
Accounts.
DECISION.
At Chambers.

DEC1S1ON.
The petition alleges the collection
of S4006.62 on account of sales
of property, and disbursements
Of $1,000. 10; and that there is due
for salaries, wages, rent, taxes,
costs of Court, counsel fees, auction
expenses and Receivers commits
siOns $12,574.22, which accounts
are itemized in accompanying ex-
hibits; also, that all of the remain
ing property of the corporation ex-
cept accounts, chooses in action, and
piece of machinery in litigation,
was sold at auction March 10Th,
1882, for $62, 900 to the holders of
the first mortgage bonds, and prays
that the said accounts be examined
and approved; that the said sale be
confirmed, and that the Receivers
be allowed S2500 as commissions for
the said sale and for their services
both as trustees and as such Re
ceivers.
The item of $4,000 was contested
by the bOndhOlders on the ground
that it was exhorbitant, and because
the sale represented only $4,000,
the balance of $4,000 being COW
cred by the mortgage bonds against
the corporation, held by the pur-
chasers.
There are no commissions or fees
fixed by statute in this country for
the remuneration of the services of
receivers. Such matters as in al
most all common law countries, are
in the discretion of the Court. The
rate of payment fixed by law for
executors and administrators is,
however, closely followed in some
places in arriving at the compensa-
ton for the services of receivers. In
some Courts, as in Massachusetts,
the governing principle in fixing
the compensation to be allowed re-
ceivers for services rendered by
them in the management of their
trust, is to allow them such a sum
as would be reasonable compensa-
ton for the services of person of
ordinary ability and competent to
perform the duties of the receiver
ship. And in fixing this amount
the Court is not governed by the
special qualifications and standing
of the person who may be ap-
pointed, but will allow only what
would be reasonable amount for a
person of ordinary ability perform
ing the work, and this amount will
not be fixed upon the basis of a per-
centage or fixed commission on the
amount of funds collected by the
receiver" Grant VS.. Bryant, 101
Mass. 567; High on Receivers,
65D.
In our practice we have gener-
ally followed the practice of allow
ing commissions on the funds pass
ing through the hands of the re-
ceiver, which is perhaps the most
convenient method. There will,
however, sometimes be cases in
which this rule would be either
unjust to the receiver in not allow
ing him sufficient remuneration for
his services, or unjust to the estate
in allowing commissions to an eX-
tent out of all proportion to the SER
vices rendered. In such cases the
court may and should modify the
rule.
The sale was for $62, 900 nomin-
ally, but as a matter of fact the
settlement must be $4,000 in
money and $780, in bonds. The
receivers claim five per cent. COM
mistions on $4,000, waving fur
Their commissions on the balance of
money collected amounting to &c.,
006.62.
I do not think the receivers are
in position to claim commissions
on the value of the bonds; no
money having passed through their
hands for them, and their being no
necessity that any should. I do
not know that they could have
properly made an unnecessary
handling of moneys and claimed
commissions therefor in such case
as this. (Haigh VS.. Grattan, Beav.
2O2).
AS to the question of compensa.
ton of the petitioners as trustees
under the trust deeds, there is nc
showing made by which 1 am able tC
consider it.
/ will allow compensation in the
way of commissions on SIG, 006.6:
collected by the receivers, accord
ing to the rule of bankruptcy
amounting to $85O.33. Although
do not consider that the circum
stance that there are three receiver
entities them to extra compensation
the allowance being for the valu,
of the services, yet, admitting tina
the combined services may hav
been and probably were of create
value to the estate than could hav
been the assistance of one alone
and there having been no shown
of the extent of such services, the
are at liberty to move for furthe
compensation upon such showing
whether as Receivers or Trustee:
The account of disbursements ar
, approved, and the statement {
proposed further disbursements 81
forth in exhibit B., is allowed ;