The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-15
COURT. APPROVES
RECEIVERS ! |. |;.! BILL
POND AND ELLIOTT PASS ON
~ GUARANTY LOAN ACCOUNT.
Of the $4,000 Collected, the Allow
ance to the Receiver and Attorney Is
$97,496.73 for Their Seven Years.,
Work Judge Simpson Dissents and
an Appeal Is Probable. IT,.

There is "a difference of opinion
among members of the district bench
as to the equity of allowing $97, 496.73 |
expense for administering an estate, the
assets Of which amount to $4,000. 4
The question raised is whether or not
$Sl, 982.12 is too large an amount to pay
for the services of a receiver and his
attorneys, when added to this there is
$l5.5l4.41 bill of expense and the cred
itors are allowed $4,000.
Judges G. M. Pond and O. B. Elliott,
after careful examination of the facts,
have become convi nced that the account
presented represents nearly seven years
of arduous work upon the part Of the
receiver and attorneys, large part of
which was in nearly every eastern state
and involving the employment of asso-
ciate counsel. For this reason these
Judges have filed an order allowing the
account. Judge Simpson has filed a dis
senting opinion and the case will proba-
bly, go to the supreme court.
The majority decision, approving the
final account of the receiver and wind
ing up the affairs Of the defunct North
western Guaranty Loan company gives
the receipts and the final distribution as
follows: -
From resident stockholders, s21, 10000
From nonresident stockholders, $751;
1884,
Interest on bank deposits, s4,4o1.o6.
Total, s113,496.5s.
| Distribution
| To the creditors, SIG, 900.
To Hale & Montgomery, heretofore al
lowed attorneys services, $4,000.
To w. E. Hale, receiver, and attorneys
services, $32,Oo9.55. ~
To NJ H. Boutelle, attorneys services
s35, s33.s7.
To eastern attorneys for services, s11,.
$3.50.
Total for services Of receiver and attor.
neys, sS1, 1922.
TO NJ. H. Boutelle for personal expenses
1891.
TO W. E. Hale for personal expenses
$3,146.
For miscellaneous expenses heretofor,
approved, s630.22.
For miscellaneous expenses by this or
der approved, $7,s0?1s.
Total expense of administration outsid
, of services of the receiver and attorney
and personal travelling expenses of re-
ceiver and M. H. Boutelle, $8,437.41.
Judges Pond and Elliott, in thei1
memorandum, cite the -labors of w. E
: Hale, receiver, and M. H. Boutelle, at
torney for the receiver, during the pas
J seven years, and maintain that they
J fully earned the amount received. They
show that the litigation has been car
J ried: on in this city and state as wei
as in foreign states. ;. That numerou
. cases have been prepared and tried il
various courts Including the United
States supreme court; that knotty .lega
problems have been solved and the bes
Ct counsel has been met, all Of which
required time, labor and unquestionet
ability. In conclusion, they hold that
tho not successful in collecting 1arg'
l. amounts Of the money supposed to be
long to the CORPORATION, they Tough
; hard and earned the money given them
! They cite. numerous cases where re
: ceivers have been paid sums, held t.
be greater, proportionately, for tn
, work done. - - - -
Judge Simpson holds that the orde
of his associates is not fair distribu
ton and cites illustrative cases. In hi
memorandum the dissenting judge re
marks: e
"The creditors, in order to be en-
, titled to participate in this fund, wer
required to file intervening complaints
A reasonable attorney fee for this ser
r vice would in the case of many credi
! tors amount to more than such credi
tors share of the $4,000 distribute,
/ to the creditors under this order.
l.. "From the creditors' point Of view
, this order would seem to provide TO
D the dissipation rather than the distribu
= ton Of this fund.-