Omaha daily bee., 1907-03-15
FEE OF RECEIVER is DENIED
Twenty 7h.u'and Dollars TO B. 7. Clarke
Knocked Out BY Munger
ORDER OF YEARS AGO IS ASNulltO
such H. the Import OF an Opinion
from Federal Bench in old
Union Trust Conn
pany Case.

Judge w. II. Munger handed down
memorandum Vpinion Thursday morning
bearing upon the failure Of the Union
Trust company Of Omaha eight OF ten
years ago, particularly as pertains to the
compensation allowed the receiver, Henry
7. Clarke, $4,000 to the date OF closing up
the AFFAIRS OF the company, and for the
allowance of the claims of other parties.
This order was granted and entered In the
United States circuit court June 20, 1893,
and is now set aside. and certain other
claims affirmed.
The case is that OF Henry Fielding, one
Of the stockholders OF the company, against
the Union Trust company, and was sub
mitted on an application to vaeate the
order allowing the receiver Oh. T. Clarke)
t90 900 as compensation to the date of June
30, 1889. and for the allowance Of claims Of
certain other parties. The basis Of the APP
plication to vacate the order was that II
could not have the force and effect Of a
final order without notice to the defendants.
No Record of such Notice.
II does not appear in the record that
such legal notice was ever given the trust
company. The receiver thus appointed was
the president of the trust company, the
claims was his own. was presented for his
the trust company. ]. b. Piper. another
Of the claimants, was director of the
company. was present and had knowledge
of the hearing. Piper had acted as man
ager OF the company before the receiver
ship, and all parties represented, 1t Is
brought out, were interested in having
large compensation awarded the receiver,
sufficient to cover any possible liability or
assessment on their stock.
In his opinion Judge Munger says:
am OF the opinion the compensation
allowed the receiver was excessive. At the
lme OF his appointment the company vas
liable to the approximate amount OF $780,
900 upon mortgages which II had negotiated
and guaranteed, also upon debenture bonds
lateral in the Shape of real estate mort
cages had been deposited with trustee.
No new business has been transacted since
the receivership, the business as conducted
being In arranging with parties represent
ing the holders of the mortgages guaran-
iced to take the. mortgaged property and
their mortgages IN liquidation OF the obli-
gatlns Of the company as guaranteed, and
the holders OF the debenture bonds we're in
like manner paid by accepting property in
discharge Of such bonds. For the foreso-
ing reasons the order allowing the receiver
ship Will be vacated and set aside.
The question now under consideration
was, Did the receiver before his appoint
ment induce members of the board OF d.
rectors to Recommend his appointment as
receiver After two years have read care
| fully all the records pertaining to the case
and giVen II the utmost consideration, and
| from Il the conclusion ls lrreslstbly
reached that the consent of Mr.. George
/ Darker and Mr.. Erastus Benson to the re-
ceivers appointment and going on his bond
/ as such were, because of representations
made by him to induce them to believe. and
( they did believe IL he was appointed that
| he would ask no compensation, Both say
/ that he told them so, but this the receiver
denies. II follows from these conclusions
4 that no compensation win be awarded Mr..
4 Clark as receiver.
some Claims Allowed.
] The decision allows the claims OF the
4 Commercial National bank of 5000. w. @.
! Maui for $3.50, George Barker for $3.50 and
Elrastus A. Benson for 800; also the claims
! of w. G. Maui. E. A, Benson and George
Barker on certain debenture bonds bought
by them In December 1900, and September
! 1901 subsequent TO the recevership, for 1;
cents on the dollar for their full face value
The claim Of ]. w. Carr as attorney for
1900 and of Joseph B. Piper for services
to receiver for 81, $50 are also allowed.
Until certain securities belonging to the
Union Trust company on deposit with the
Central Trust company OF New York fol-
the security of the debenture bonds and
their value is established. the court is un.
able to determine what assessment should
be made on the stockholders.
The order further directs that the attor
neys shall prepare the proper findings II
accord with the opinion and provide for no
tice by advertisement for all creditors Il
present their claims or be forever barred
and submit the same to the court April
Proper exceptions will be noted for any
party desiring the same.