The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-10-14
WRITES A SPICY OPINION
III COSTS A REFEREE NOTHING
TO RESIGN.
NOT EVEN A TWO CENT POSTAGE STAMP
The President Of Busted" Corporation Can
not be Classed as Servant and so
When his Company Fails his
Salary Goes Too.
Salary Goes Too.

Judge Purnell yesterday rendered al
opinion in the case of the Carolina Coop
erage Company, bankrupts.
In course of this opinion the judge paid
his respects to those who seem ito look
upon bankrupt proceeding as an OPP
portunity for getting as much of the
wrecked estate as possible in the way Of
of fees and costs The opinion says:
This case is again before the court
upon the final report of the referee and
settlement of costs. But two items are
excepted to. First, the allowance of
500 to the trustee in Lieu of the : per
cent commission allowed by the statute.
This exception is sustained.
Section As b., Act 1885, provides that
a trustee shall receive as full compensa-
ton for their services a fee of FIVE dol
lars and commissions not to exceed 3
per cent. on the first five thousand dol
lars or less, etc. Even if the statute
had not thus limited the commission of
this officer, the United States Supreme
court in Rule 81, section 3, has done So
But it is said that the trustee
was an agent of the court for the sale OF
the property of the bankrupt corporation.
These are services the Bank
ruptcy Act contemplates the trus-
tee shall perform, and when the sale
was actually made he was trustee The
referee proposes to amend his report by
allowing 3 per cent commission and
fhor, al o1l ~,
make this sale. This would be an eva
sion the court cannot countenance-it is
not contemplated in the law.
: Allowances are in the sound judicial
discretion of the court. Suppose the
sale was made as agent of the court as
commended, then all the services per-
formed by the trustee were to receive
and hold the proceeds of sale, and his
maximum commissions are netxto exceed
3 per cent, the minimum commissions
would be allowed. Both agent and trus-
tee being the same, the 3 per cent is
ample compensation for all the services
performed, and the only compensation al
lowed under the act. As before said
in re. Woodland 90 +. r. $50. One of
the purposes of the act of 1898 in estab-
fishing uniform system of Bankruptcy
was to avoid what was the principal
cause of the repeal of the bankruptcy
act of 1897, excessive fees and great
expense This being so the law should
be administered at the minimum cost
consistent with efficient service. This
being the manifest intention of Congress.
it is incumbent on the Bankruptcy court
and its officers to so administer the
law. TO do otherwise, is ito violate the
law. Parties should not accept office
under the Bankruptcy Act in ignorance
of the fees allowed by law, aud when
they inadvertently do so and are dis
satisfied with the fees allowed they can
relieve themselves of the burden without
the nominal expense of postage stamp
by a few lines resigning the trust, sent
under a frank as official business. Va
cancies can always be filled as provided
in Section 4S A., Rule 80, and no more.
! 1.-The second exception is to item four
as to debts having priority and to be paid
in full, as follows: A. Slocumbs salary
as president of a bankrupt corporation
at a rate of 500 per annum from De-
tober 9th, 1898, to January 9th, 1899,
$175. This exception is sustained. No
authority can be cited for the contention
that this debt, if it be a debt, should
have priority over claims Of persons
whose funds have been swallowed up in
the bankrupt corporation, but the spirit
of the law and the decisions are against
it. The citation of the definition of
wage Garner in section j, sub. 527 cam
not aid the claimants. This definition
was intended for other sections of the
act as cursory examination will show
any logical mind. But the section, and
the only section, under which it is claim
ed Slocumb has a priority is section GA
A., which limits the priority of wages