The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-10-14

| to be paid to workmen, clerks and ser
wants, which have been earned within
three months. Slocumb was neither a
workman, clerk or servant in the
sense in which these limiting words are
used. If Congress had intended this pro-
| vision to extend to presidents of COM
mercial corporations it would have said
so. Presidents of such corporations dc
not generally act as workmen, clerks OF
| servants, but exercise authority over
these classes, occasionally arbitrary ana
oppressive, but always i'll way to lei
them know the president is not one OIL
them. There is no evidence before the
court that Mr.. Slocumb was an eXcep-
ton to the general rules-no evidence he
did any work. no evidence he kept the
books or even the minutes of the cor
poration as clerk or acted in the capacity
of servant. He was not "a servant, for
he had no master over him, but was pre-
sumably supreme in the body. Men who
have attained position. and in their own
minds regard Themselves as rulers often,
in a bombastic way proclaim themselves
the servants of the people. 1t Is diplo-
macy and in some quarters regarded as
good form. Possibly in this way a presi-
dent of Il commercial corporation may
regard himself as the servant of the cor
porate body, but this is not what is con-
templated in the statute. The classes
to whom it was evidently the intention
of Congress to give priority is that class
who labor and serve, parties who, under
the laws of some States would have a
lien or at least be preferred to other
creditors in the settlement of an estate.
The president of commercial corpora
ton does not fall under this head.
''The same view of this section was
taken by Phillips, District Judge. IVES
tern District of Missouri in re. Grubhs
Wiley Grocery CO., So r. r. 1873. The
case was almost 'on all fours' with the
Indeed it would present a remarkable
feature of the bankrupt act, if the man
aging officers of business corporation
could vote themselves salaries ad libitum,
and after by their management, wreck
ing the company and inviting an adju-
dication in bankruptcy, they could, to
the exclusion of other creditors of the
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 was evidently not i'll the
mind of the law makers. This claim
cannot be allowed a priority and will be
stricken from that list
1.-The attorneys fees which the court
may allow under section "a, must be
In view Of what has already
been said-the course of the proceeding,
the fact that there has been no litigation
since the sale in which the bankrupt
was directly interested or actively en-
gaged--it is evident that an attorney for
the bankrupt would not have had oner-
Gus duties to perform or any duty other
than filling out blank schedules and Civ
ing legal advice. Seventy-fve dollars for
this service is excessive. Twenty-Five
dollars is ample and reasonable for the
service, which could probably be re-
CURED in connection Herewith.
1T is therefore ordered that the al
lowance to the bankrupt's attorney be
reduced from seventy-hye to twenty-five
dollars and no more paid by the trustee
IN this account.
There is no authority for the hire of
/ clerk by referee, and the item i'll the
expense account of SO for
clerical aid and stationery is disallowed. |
There is no voucher filed for the sta
.ionery as required, which is probably
he smallest part of the item. Such items
under Rule 50, Section 2, can only be
lllowed by order of the judge. If a
referee could thus hire clerk at SO. |
he could hire some one to attend TO all
except the judicial duties of the office,
while he attended to other business and
hus under an act and rules limiting his
in plain terms, increase
he cost of a proceeding in bankruptcy
far beyond any of the extravaganza
under the Act of 1897 This item will
De stricken from the expense account
If the referee.
1.-THE ruling of the referee refusing to
recommend Il fee to the attorneys for
he trustee on the ground that the same
attorneys are allowed fee as attorneys
'or the petitioning creditors which coy
.rs any service rendered in this behalf
IS affirmed. The allowance of any at
fee is a matter within the sound
judicial discretion of the court, section
j4. IS 3, and should be exercised in ac-
.ordance with the spirit and purposes OF
he act, as to costs and expenses, due
egard being always pand to the ends OF
Justice, equity and economy.
.sThere are other items in the final
'eport which do not seem to be in exact
with the intent of the bank |
upt law, but having passed the scrutiny |
# the counsel representing all the part |
es interested, it is presumed upon ex-
)lanation these items are satisfactory |
o all and except as herein otherwise de-
.ided, the report is affirmed"
PRICES or SCHOOL BOOKS.