The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1899-10-20

under this head. The same view of
his section was taken by Phillips. dis
trict judge! Western district Of Mis-
souri, in re. Grubbs Wiley Grocery Co.,
SO, F. r. 1873. The case was almost ION
all fours' with the one at bar. The
learned Judge says: Indeed, it would
present a remarkable feature Of the
Bankrupt Act, If the managing officers
of a business corporation could vote
themselves salaries ad libitum, and af-
ter, by their management, wrecking the
company and inviting an adjudication
in bankruptcy, they could, to the ex-
clusion of other creditors of the IN
Germ. whose money and property they
had obtained on credit, come in as pre-
ferred creditors to the exclusion of such
general creditors" The president Of a
corporation vas evidently not in the
mind Of lawmakers. This claim an
not be allowed a priority and will be
stricken from tina list.
COURT 2
The Attorneys fees which the court
may allow under section 81. 3, must be
reasonable. In view of what has al
ready been said h course of the pro-
ceeding, the fact that there has been
no litigation since the sale in which the
bankrupt was directly interested or &C
lively engaged, it is evident that an
attorney for the bankrupt would not
have had onerous duties to perform or
any duty other than filling out blank
schedules, and giving legal advice.
Se~venty-five dollars for this service is
excessive. twenty-five dollars is am
pie and reasonable for the service,
which could probably be required in
connection Herewith
It is therefore ordered that the allow
ance to the bankrupt's attorney be re-
duced from severity five to twenty
five dollars, and no paid by the
trustees on this account
There is no authority for the hire Of
a clerk by a referee, and the item in
the referees expense account Of $40
for clerical aid and stationery is dis
allowed. There is no voucf er filed for
the stationery as required, which is
| probably the smallest part of the item.
Such items under Rule 50 Section 2,
can only be allowed by order Of the
Judge If a referee could thus hire a
clerk at SO be could hire some one to
attend to all except the judicial duties
of the office, while he, attended to other
business and thus under an act and
rules limiting his compensation in plain
terms, increase the cost of a proceed
ing in baLkrupcy far beyond any of the
extravaganza under the Act of 1867.
This item will be stricken from the ex-
pense account of the referee.
III ldlClllS VI mlS IClSItc ICluSIuS GO
recommend a fee to the attorneys for
| the trustee on the ground that the
! same attorneys are allowed a fee as at
| torneys for the p~etitioning creditors
which covers any service rendered in
this behalf is affirmed. The allowance
of any attorneys fee is a matter with
in the sound judicial discretion of the
court, Section GA, ss.3, and should be
exercised in accordance with the spirit
and purposes of the Act, as to costs
and expenses, due regard being always
paid to the ends of justice, equity and
economy.
There are other items in the final re-
port which de not seem to be in exact
compliance with the intent of the bank
rupt law, but having passed the scruti-
ny of the counsel representing all the
parties interested it is presumed upon
explanation these items are satisfac-
tory to all and except as herein other
wise decided, the report is affirmed.
October 18th, 1899.
THOS. r. PURNELL,
U. S. District Judge.