St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-21
LAWYERS AND PANIC
Enormous Business Done by Big
Firms During the Last Six
Months

Enormous Business Done by Big
Firms During the Last Six
Months.
New YORK, Jan. 20.-1he big law
firms of the country are credited with
having done an enormous business
during the past six months. Times of
panic are considered times of prosperity
for the lawyers. Here in the metropolis
the large legal concerns have been eX-
ceedingly busy. Many Of them have
hired additional clerks. A great many
young attorneys, whose private practice
was small, have been called in to help
out the great concerns. In order to
ascertain the accuracy of the statement,
the head of one of the biggest law firms
in the country was called upon the
other day.
Yes. it is prefectly true" he said,
'that the legal fraternity has been very
busy and is today crowded with all the
work it can possibly handle, and more
| too. Periods of depression always re-
suit in the need of lawyers. Their
! services are constantly required. But
| | think l voice the sentiment of every
busy counselor when l say that l
would much rather have the ordinary
run of business than the crush OF work
| that has been upon us for months and
promises to continue for months to
| come"
"Why is that?" was asked.
Because of the immense RESPONSE
bility that rests upon u.s." was the
reply Seasons of failure and of COM
mercial shrinking in value bring diff
| ficult problems in law and finance.
| The counsel of large dry goods house,
| for instance, is called upon to consider
| the feasibility of the firms making an
| assignment. Creditors are pressing.
| Collections are bad. There is big
| stock on hand that cannot be disposed
| of. Contracts were made in prosperous
| times for extra material in additional
| goods, and the fuItillment of those coll
tracts on the part of the purchasers
means ruin. The lawyer is asked to con-
slider what would better be done. He is
asked to have the contracts released, it
possible, or the Carrying of them out
postponed. He is compelled to become
at once not only legal adviser, but
also an expert accountant and
financier; be recognizes the Importance
of the situation. A right decision and
diplomatic handling of affairs will take
the establishment over the impending
crisis. A wrong decision or an I'M
fortunate treatment of the case may
result in disaster to the firm and the
personal impoveriShment of the in
dividual purchaser. No ordinary re-
tanning fee can adequately compensate
for the work and money involved. Yet
the charging an extraordinary sum for
services will only add to the burdens of
the concern. The client, troubled often
to the verge of insanity, never stays to
argue overcharges. He Says he wants
relief. and is willing to pay for it,
provided he is helped out of his diff
liculties. Don't you see the RESPONSE
billty of the position?
"Then take the case OF the counsel for
great railroad or industrial corpora
ton. The company gets into trouble.
Its position becomes very embarrassing.
Something has to be done and done at
once. The demand for action is urgent
The counsel must decide whether it is
wiser to apply for a receiver or endeavor
to secure a loan, or issue additional
securities. The officers of the corpora
ton become frantic. They are untitled
| to decide what is best. The mental
strain is awful. Balance sheets and
statement of bills receivable and bills
due are brought the lawyer. He must
90 over them from the bookkeeper's
| standpoint. He must take into con-
sideratiOn not only the existing emer-
gency, hut also future contingencies.
The appointment of receiver may pull
the company through and it may inJure
the concern permanently. TO get loan
means that the lawyer must go out and
hustle for it.
why" said the eminent solicitor,
wheeling suddenly around in his chair,
1.-THE corporation lawyer of today is
really promoter, accountant, fnancier,
broker and adviser all combined. In
such critical condition of affairs as |
have just described, he is compelled,
after examining the books and balances
to go out to trust companies, banks or
private capitalists who may be clients
or friends of his and see If he can obtain
loan for the corporation he represents.
He must promote its interests as best
he can. He must spent days and nights
with bankers, if the issuance of securi-
ties is under consideration, and look out
that no Shylock game is attempted. If
various banking houses are striving to
secure the bonds proposed or the in
creased amount of stock, he must play
the broker and endeavor to trade
shrewdly and yet wisely. If it is
deemed advisable to ask the court for a
receiver, he must determine the merits
of various individuals for the place and
take part in contest with the Shrewd
lawyers VINO VIII appear on the scene
for the creditors. | tell you, sir, that
not for ten times the amount of fees
made since last June would again go
through the stress and strain incurred
since the panic came on. For the sake
Of my health and family, could not
afford to undertake any more such
cases. Yet the lawyers duty is plain.
you know. He must be faithful to his
clients needs and urgencies, and under
no circumstances must he forsake
him." LAWRENCE S. Mort.