The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-01-27
THE EXPENSE ACCOUNTS
COURT WILL NOT WEIGH THEM
IN GOLDEN SCALES
THE COMPENSATION ALLOWED RECEIVERS
There is And Can Be No Fixed Rule For De-
terminirg Their Compensation. The Cir
cumStanceS of Each Case Must
Eovarr tho Anoount
Govern the Amount,

Judge Purnell, of the United States
District court, yesterday handed down
an opinion in the bankruptcy case of
Scott ~ Grisham, trading as Scott ~
GriSham and Scott & Co., declared bank
rupts and an adjudication made June
Goth. 1899.
They had stores at three points in Dup.
lin county-Rose Hill, Warsaw and Wal
lace. On June 23rd, receiver was APP
pointed who held the place from that
date to October 10th.
Appeal from the referees findings was
taken on the question of adjustment of
costs. In course of his opinion Judge
Purnell recites the exceptions to ref
eree's rulings and says:
Taking the record as sent up for re,
view in accordance with the rule, the re-
ceiyer is allowed actual expenses, clerk S
hore, &c, of taking care of the stocks
of goods, airing the stores during the hot
weather to prevent mildewing, &C., an
average per store of 81 90 per day. This
seems to be reasonable and under the
circumstances as economical as could be
expected. The order of the referee al
lowing the receiver these expenses is ar
fiFmed
The receiver excerpts to the order OF
the referee making a lump allowance
of $4,000 to him for personal services
as receiver and in the record files a petit
ton asking for n per diem allowance OF
$500 for the 100 days he was engaged
III caring for the property of the bank
rupts. On the other hand bankrupts OBJ
ject to the referees allowance of $4,000
as excessive for that the same is mot
warranted by law and further that said
receiver was not taken away from his
own business but during the entire time
looked after his individual business and
insists that fifty cents per day would be
adequate allowance.
''The receiver was selected or recon-
mended by the parties as q good reliable
business man, required to give bond or
the performance of his duties under the
orders of the court and was responsible
ON such bond for the property. The pit
lance contended for by the bankrupts
is too absurd to be seriously considered
When party is appointed a receiver, he
is not expected or required to give up all
other business, or devote himself eXclu-
sively to the duties of receiver. If he
preserves and accounts for the proper
ty, and obeys the orders of the court of
which he is an officer the court will not
look beyond or fix his compensation by
what he is making from other enterprises
or investments. Neither the bankrupt
act. the law or equity contemplates any
such communistic reasOning-tO keep him
down on a level with day laborers or less
enterprising citizens. That such allow
ance is not contemplated in law does
not seem to be supported by any author
ity"
Having power in its discretion to APP
point receivers the court has power in its
discretion in contemplation of law to
nav such receiver such compensation as
may be reasonable and. just. To allow
fifty cents per day would not be reason
able or just. to good reliable business
man acting as a bonded officer of the
court Bankrupts exception to referee 5
allowance is therefore over-ruled.
THE lowest per diem allowed mar
shall is two dollars per day for attending
a commissioners court, but in taking care
of property the allowance is not governed
by the time employed but by all the sur
rounding circumstances. The referee Is
= man of discretion, lives in the section
where the stores are situated. has heard
the testimony looked into the eyes OF
the witnesses and has never shown him
self to be parsimoni0us in allowances. III
short. living in that section, knowing all
the surrounding circumstances and there