The sun., 1907-11-20
The COST OF A RECETVERSHIP
FIGURES To WAKE a HUNGRY
LAWYER Rg'B HIS STOMACH.


Receiver Charles NJ. Preston Of the New
York Building Loan Banking Company
comes mp before Thomas r. Conway az
referee tomorrow morning for examina-
ton as to the items IL contains it is the
intention VI the Attorney General 20 dis
pute somo Of the bills put in, including
those for legal services, and to protest at
the delay In winding up the affairs of the
company.
The company went into the hands OF a
receiver IN September, 1908, and in the
following February the reCeivership was
made permanent. On Monday some of
the ~ 900 persons who had invested in the
institution. either to get homes or draw
10 per cent. dividends received a I5 Ger
cent. uivhdenu--Uhe iirst to ne paid by the
receiver. The amount distributed was
about S4OO,OOO. One more dividend of 10
per cent, il was said at the Offices of the
receiver yesterday. would probably be
paid next month. IL was said also that in
January the receiver would probably ask
for his discharge and would then file a
hnal accounting.
Each accounting filed by the receiver,
comprising many items and including
the schedule Of legal services performed
by counsel. in accordance with the usual
hearings in each case lasting many months.
For his appearance at these hearings the
counsel, employed by the receiver has
charged extra, which together with the
compensation allowed the referee and
stenographers fees has helped considerably
to eat into the amount collected by the
receiver to pay the depOsitors
Charles w. Dayton, now Judge of the
Supreme Court. was counsel for the receiver
until January of this year, when he took
his seat on the bench. On january 1 Mr.
Preston appointed Judge DaytOn's son,
Charles W. Dayton, Jr.. To succeed his
father as his counsel. Mr. Dayton. Jr..
who 10 81 years old and formerly worked
in his fathers law Office has put in a bill
for his services from January I until Sep
tember 13 for 900. which does not IN
Clude his services in the accounting pro-
ceedings before Referee Conway in con-
nection with the third accounting Of Mr..
Preston. filed in September. 1903.
When Receiver Preston fled his fourth
accounting last September and the matter
came up before Justice Mccall. Deputy
Attorney General Frank H. Mott objected
to II and asked the Court to direct that IL
ne simply filed pending a final accounting.
one reason being the expense of such pro-
oeedings. Judge Mccall. however ordered
that the usual course he pursued and the
statement again be sent before a referee.
Exclusive Of the accounting proceedings.
the stat enents on file in the County Clerk a
pftice show that Judge Dayton. as counsel
for the receiver up to September 10. 1905.
received S93.g2I. For his services from
that date until January !. when he went on
The bench. his hill. which is included in the
lAet statement fled by the receiver. is SO 900.
The first and second annual accounting Of
the receiver filed in the fall OF 1904 and 1905
respectively. we're sent to Referee Logan.
Hearings we're held from February %, 1908,
= July H. 1908. when MIR. Logan died. For
u,.sIa-
p1t in al extra hill for S65. 900. This bill
was cut ~ Sl3O0l.
SO far Judge Dayton has not put in a bill
.cr his appearances before Referee Conway
from IuIy ~. i906, to January I. 1907 nor
Eas Charles W. Dayton. JT., for his services
,,eforc Mr.. conway after that date. As
fhown IN the statements thus far sub
Titted Judge DAYTON will have received
10 TO date total of g22 Sp3 92I for
ais regular services al counsel and S43.OOl
for his appearances before the former
referee. He has yet 10 receive the $4,000
which he has charged for his services from
September To January, IvO7, and whatever
amount may be pad him for his appear
-nces before Referee Conway from July ~,
500, TO January I. 1907.
Young Oayton's bill Of $40. .OOO for re2u- ,
lar services counsel for nine months
iS at the rate charged by the elder Dayton, |
br about 9i0.O0O year. One Of the services !
for which Charles W. Dayton, JT.. charges,
ap shown in the memoranda accompany-
ing this bill. ~ for work done in connection |
with the claim brought against the re- |
ceiver by Charles ". Dayton, Sr.. for |
s65,O00 for the latter's work before Referee !
Logan. which claim was heard by Referee |
Conway. The services enumerated in con-
r.sction with this claim were the receipt Of |
information that Mr. Conway had masa@ |
his report, the preparation of a notice Of |
motion 10 confirm the report, the sending |
II the same to the printer and seeing that |
so letters we're sent out TO depositOrs or
their attorneys notifying them that he had !
moved 20 confirm the report.
In explanation Of his bill. Charles ".
Dayton. Jr.. sets forth l0T proceedings in
which he appeared and says that he col
sected sl02, $50 in cash. The legal depart
pnent Of the receiver. he affirms, has been
kept open from TO 5 every day and it has
been necessary to do some work outside
OF those hours. He does not enumerate,
he says. many talks which he had TO have
With employees OF the receiver and the
company.
There are other items showing the ex-
Pense OF a receivership of this kind. which,
tt is the contention OF the Attorney General
cannot stand as approved until the final
accounting Of the receiver has been passed
upon and approved by the courts. For
Instance. the estate of Referee Logan re-
Soived 22,3OO from tho receiver for Mr..
Logan's work in going over the receivers
statements and claims against the receiver
tor q period OF sixteen months from
February %, 1906. to July ~. 1903. The
stenogrspher's fees for these hearings
amounted TO S2.293. In the year from
September. 1905. to September 1907. in
which Judge Dayton and his son have !
charged collectively $4,000 for their ser
vices. not counting theirs appearances |
before the referee. the payroll and other I
expenses of the law department footed |
up 10 S7,sOi. The Attorney-General's OK !
ISnses. which are paid by the receiver. |
we're Ss.IOi. Receiver Preston will get for |
this year, II the account is approved. the |
SdIn Of si2.OOO. In some years hfs fee has /
been less than this. As shown in the last |
report. Mr.. Preston had collected Ss29 40 |
ci assets, with liabilities on September Is /
OI only t17. 7OO, leaving the net assets
$3.50, 40. The total expenses for last year
wore sara. .6S2.
In April. 1906, a new law went into effect |
in this State providing that a receiver
employing counsel shall "enter into a con-
tract fixing the compensation Of such coun-
sci az not exceeding a certain amount or a
certain percentage Of the sums received
and disbursed by him, which contract must
Ia approved by the Supreme Court on at
least eight days notice TO the Attorney
General" Judge Dayton was appointed
counsel sOrne time before thu IaW u.a |