The Saint Paul globe., 1897-10-25
SALARIES OF RECEIVERS.
Question of the Proper COmpensa-
ton Plainly Discussed.

To the Editor of the Globe.
Again the subject of salaries for receivers
Of sundry collapsed banks is before our
courts. Again are partial allowances made
on these salaries clearly indicating that the
final upset sum will be a large one. The
very hesitation and temporizing with them
shows a fearsome purpose to postpone the
decision to the hour when desperation is ex-
pected to lend nerve to the act. This is not
an attractive situation for public contem-
plation, but is it not logically true?
These receivers are representatives Of the
court, while the court in turn is the repre-
sentative of the public, including that con-
siderable portion who have appealed to it for
such protection from further losses as the
laws and good conscience will afford. The
court represents the majesty well as the
might Of the law. It's action in these cases
is hoped to be judicial and official weigh
ing Of the public interests as well those
of individuals; that is to say, the public
sense Of justice should not be offended by
decision as to these salaries that would
not readily be approved If the question was
one between individuals Control Of individ-
ual interests in these broken banks has been
transferred to the courts as the established
legal agency for administering equal and eX
act justice to every interest involved. The
court, therefore, represents not only creditors,
debtors and stockholders, but it stands for
something higher than these-for the state,
the public, and hence should exemplify the
justice and majesty of law.
Naturally the receivers want all they can
get Creditors are not unwilling that a sum
measuring the real value of the service rem
dered should be paid. What is that sum?
is the question. AS there is no rule for meas
uring such services their value can only be
ascertained by experience, comparison and
the use Of that common sense which is al
ways the safest guide. 1t is conceded that
the services are important; that the RESPONSE
bility is great So are those of the court
that is asked to fix their value. as of all
the other judges of the state, high and low
Much of these receivers service is merely
TiT1ta aOfo ~ ola ioo1 r1y
and wherein their work involves judgment,
wisdom and the higher ideals of responsible
ity, the court Is supposed to share with
them Their duties are not technical and OBJ
truse that only professionals can perform
them. 1t has become a too common fact
that receiverships Of corporations are regard
ed as such soft snaps" that professionals
lie in wait for them and wax fat and kick
when they get them. 1t is notorious, not to
say scandalous, that receivers are allowed
much larger compensation than they ever
get by private contract, or than is paid to
the managing officers Of the corporations they
represent 1t is well not to forget that what
ever salaries may be allowed are not at all
matter of bargain between private persons,
put an arbitrary sum taken nolens volens
from the banks creditors who already are
aching victims of gross mismanagement not
to use more definite term.
The writer admits that he Is a victim of a
collapsed bank. He admits that a bank re-
ceivership requires SKILL wisdom and hon
esty, and that it is only a temporary "job."
But he believes he can treat this subject fair
ly. He believes that courts generally may
we'll consider whether the receivers end of
the scales of justice shall drop with its weight
while the arm Of the creditor kicks the beam
He believes that the too common habit of
courts granting large salaries should be torn
up, root and branch, and that the cases now
in hands offer the ripe opportunity He be-
lieves receivers should not be salaried by our
courts higher than are the judges of these
courts higher than our governors men,
bers of congress, federal judges. He believes
that salary no greater than would be ar
ranged by fair committee Of both debtors
and creditors should be allowed.
On this point here are some facts: The
judges OF the supreme court of Illinois re-
ceive $1,000 per year. The United States trial
judges the same The writer has before him
an official letter from Hon. James H. Eek
els, comptroller of the currency of the United
States, from which he quotes:
The salary of a receiver is fixed by the
comptroller of the currency, and depends al
together on the size of the failed bank, and
the nature of the trust to be wound up. The
average salary paid receivers is about $4,000
for the first years service"
Now if the average is $1,000. the highest
carnot be more than $1,000. Wouldn't it be
quite natural for fair minds to think very
earnestly and deeply to see our courts order
ing receiversbip salaries larger than the
judges themselves receive? The salaries of
supreme court judges represent the fairest
OF yet greater salaries to receivers be very
likely to kindle thoughts that it were best
should not be awakened?
1t surely is to be hoped that whatever ac-
ton is taken In these cases, it will not leave
yet worse taste in the public mouth The
thousands of victims of the vanished banks
are already sufficient sufferers without wit
Messing the spectacle of the pennies recov-
cred from the wrecks swallowed up by the
costs Of collection and distribution.