Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-07-29
AN INTERESTING DECISION
Case Of R. D. Maxwell VS.. Whining
ton Dental Manufacturing Co.


ton Dental Manufacturing Co.
$4,000 FOR THE RECEIVERS
Attorneys Allowed the Sum of
$1,000.
OPINION GIVEN BY JUDGE BRADFORD
In the United States circuit court
on Thursday Judge Bradford handed
down an opinion 10 the case of Robert
D. Maxwell vs. The Wilmington Dental
Manufacturing Go. The case is one
in which the GFnrd Life Insurance,
Annuity and TRUST Co. Of Philadelphia
by petition applibd for an allowance to
it of compensation for its services as
receiver of thd Wilmington Dental
Manufacturing Co., and also for tine
eervices OF colubel employed by it as
such receiver. Counsel for the receiver
had made to thd court alternative sug.
gestiona touching the amount which
should be allowed to tho receiver for
its own compensation, as follows:
First, that such compensation be filed
at the sum OF sBQ, COO. to cover all past
and future services of the receiver, or.
secondly. that, should the court deem
it improper I'd fix the total com
pensation for tie receiver at this time,
the sum of $4,000 be allowed for or ON
nnan,,pt ~ 10 lnaruinap baratofora ran.
dnred.
The opinion lays that the first sug-
gestion is clearly inadmissable. The
assets of the company, to large
amount consisting of both real and
personal property, will in all proba-
bility have to be converted into cash
aud properly applied and distributed
before the termination Of the receiver
ship, and it is Impossible at this stage
of the proceedings to forsee with any
| degree OF ACCURACY what questions or
complications may arise in the case
before it reaches it's conclusion. The
proper time for the final allowance is
at the close OF the receivership. Under
| the circumstances the court cannot
with any propriety now fix the total
compensation Of the receiver for past
| and future services.
| The alternative suggestion Of an
allowance of $40, 900 on account of
services heretofore rendered has re-
ceived careful consideration by the
court. The petitioner was by the de-
cree Of July 25th, 1893, appointing it
receiver, and by the order of the court
made August 9Th, 1893. fully author
ICED and empowered to manage and
operate the manufactures of the dental
company and to continue all of the
branches of the business. But so long
ago as June 9th, 1896, the propriety Of
effecting a prompt and final settlement
| of the affairs of that company was
clearly recognized by the court; for on
| that day an order was made that the
| Girard Life Insurance. Annuity and
Trust Co. of Philadelphia, the re-
csiSer, should within 80 days from
that date wind up the business of the
dental company, and liquidate the
claims Of the creditors of the company.
While the New York, Washington
and Chicago branches of the company
have been discontinued, and its assets
there situated largely converted into
cash and the petitioner discharged
from Its ancillary receivership 10 those
places, the affairs of the two principal
houses in Delaware and Pennsylvania
have not set hesn closed. The court
continues to regard an early settlement
of tie affairs and termination of the
receivership as imperHtively required
by the interests of ito creditors and
stockholders. II is the duty of the re-
ceiver to use all reasonable dispatch
for the accomplishment of these
objects.
Where a receiver of an insolvent
corporation is clothed with the duty o.
winding up its affairs with all con
venient speed, sound policy requires
that partial or intermediate allowances
OF compensation for the receiver SHOULD
be materially less than the worth Of
the services rendered by the receiver
prior to the making Of such allowances
and that the final allowance, made a
the close of the recsivership, SHOULD
be so adjusted that the receiver viii
have fair and just compensation fo
his services as whole, notwithstand
ing the inadequacy OF tbs partial o
intermediate allowances considered b,
themselves.
Upon the facts disclosed in the case
and in view of the foregoing con
alterations, a present allowance o
$40, 900 to the petitioner on aceoun
OF it's services as receiver seems to tn
court reasonable and proper and accord
ingly will be made This final adjust
ment OF com ensation ut the close q
the receivership will afford ampl
opportunity for the allowance TO tn
| petitioner of any excess of value of il
services heretofore rendered over th
amount OF compensation now allowed
1t appears from the evidence adduce,
in support of the petition and from tn
statements OF counsel ut the hearin
that the only unadjusted compensation
for the services of counsel for the re
ceiver is such aa may be due to j. II
l4offecker and Robert ID. Maxwell, tn
two principal attorneys of the receiver
and ii has been suggested on the par
of the receiver that the sum of $40, 90
be allowed at this time on account q
i their services heretofore rendered. Tn
court can perceive no reason why tn
, affairs of the dental company sboul
/ not he completely closed, final allow
r ances made and tho receiver discharge
by very early day, In the meantim
q an allowance of 81, coo to the petitione
d by way of joint compensation for tn
y above named counsel on account
their past aervicee ia all that woul
seem to be- justified. Such an ALLOW
q ance will therefore be maae, with til
; proviso, however, that all moneys her
:, tofore received by tho said two couns
/ or either of them from the receiver O
n account of their or his compensation
be credited upon such allowance, an
that only the balance of the said su
Of $1,000 so allowed, after deductir
i. all such credits, BIS paid TO the sal