The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-11-21
LUXURY OF RECETVERSRIPS
1913, 900 TO DEPOSITORS, $500 600,
SAY, FOR EXPENSES,

~ eNg WY AAb y = . aAAANhh 1N8n III
lnE Company Ruin seems 20 work
out -HDaytOns To NE Asked why Their
services Arc worth eAO. 600 n ear
Some Of the 1000 depOsitOrs Of tho New
York Building Loan Banking Company.
which has been in he hands OF Charles M.
Preston as receiver since September. 1908.
are becoming actively Interested in the
matter OF the huge legal expenses OF the
receivership. IL was said yesterday that
the depOsitors. whose savings invested in
the corporation aggregated Over 81. 700. 1000.
would be lucky II they got 30 cents or the
dollar At present the prospects are only
for another 10 per cent. in addition TO the
rs per cent. they received this week.. which
makes only rs cents on the dollar. or say
1875, 900.
In contrast with this. these aRitated de-
positors are pointing out. the merely legal
cost Of the receivership proceedings has
already exceeded $500. 600 and will probably
fall little short OF SSOO. 900 before he re-
ceiver is discharged. The question agitat-
ing these depositOrs is whether the legal
machinery Of a receivership that can only
turn out 25 or 30 cents on the dollar to the
victims should itself absorb nearly as much
as the depositors get.
Deputy Acknowledgement Frank II. Mott
will be on hand this afternoon at the ofioe
Of Referee Thomas +. Conway. ~ Liberty
street. to question the receiver concerning
the items Of receipts and disbursements
shown by Mr.. Preston's fourth annual
accounting. filed in September last. Mr..
Mott does not expect to develop anything
startling by the examination Of these ac-
counts. which are undoubtedly strictly cor
rect. But he does hope. when the receivers
accounts are settled. to cross-examine to
some purpose Charles W. Dayton. Justice
of the Supreme Court. and his son. Charles
Nv. Dayton. Jr.. Zach Of whom has a large
claim pending before the referee for legal
services rendered to the receiver between
September II. 1909. and September 10. 1907.
The elder Dayton's claim is for $40. 900 for
work done as counsel for Mr.. Preston be-
tween September II and December 81. 1905.
Including Saturdays. but excluding sun
days and holidays and takingintonoaccount
Mr.. Dayton's activities Is a candidate
for n Supreme Court bench. there remain
ninety working days for which Mr.. Dayton
asks $4,000. or about $40 a day. On some
Of the ninety days he had to appear in court.
but on many Of them his work was confined
TO receiving or debating letters OF legal
documents. And this $4,000 is TO be in
addition TO 1885,. 900 odd which Mr.. Dayton
has already received from the receiver for
special and general counsel work. and be
sides he still has a claim. az yet unstated,
for his services AZ council for Receiver
Preston in Inc last or third accounting.
Mr.. Mott proposes Ia make Justice Dayton
disclose by what theory he values his ser
vices at s40.O00 a year "a counsel for the
receiver and as much again as counsel
once mere when the receiver makes his
annual accounting.
Young Mr.. DAYTON viii also I've asked 20
show how his services are worth the same
amount As his fathers. since IL must bc
granted that the ratio Us compensation for
the elder DaytOn'S work is largely based on
Justice Dayton's staining at the lar when
he became counsel for Mr.. Preston and his
earning capacity al 4 lawyer had he not
accepted the job.
A tahulatiOn Of the cost Of running the
rpceivership will give a better understand
ing Of how the money goes;
charles w. Dayton ST.. for legal services
Charles W. Dayton, ST has a claim pend.
ing for legal services o. ............. 10000
Charlie: " Dsytoa yr; e. a claim pend 70 ooo
Receiver Preston has received for his ser
RcrccivcT Preston has claIm for services Tor
TO Tci,rSs Wsitrr 5. Logan's estate w,s
NhaIal eos, OF legal d]cpartm"n. at 5000
aNcar Tor four year. to S"ptciuhfr lN' &Noo
ncction with rcccivcrship Al IS go . ycsr. 5aO0
I S,rnogrsphcr', expenses at $500 = rear. IoHp0
Total expenses to date icStlma'rdl .... Ss,Gp2i
In addition there will he the Cost Of Ref
cree Conway's several references. lasting
! since July. 1905, and still going On. As Ilr.
Logan's fees were fixed at S22. 500. It - safe
10 estimate Mr.. Conway's bill. when a final
! accounting ~ had possibly q year from now.
az about $40. 100. The other annual eX-
penses. including the cost Of the younger
Dayton's services, II continued at their
present valuation. will lie in the neighbor-
hood of SIS. mo. and then Mr.. Preston will
he entitled TO ask for a special allowance "a
bring his total income from the receivership
! up TO 2IS per cent. on all the moneys that
have passed through his and
In this way IL is readily seen that 100000
is not an e-xtravagant figure for thc legal
cost Of the receivership, admitting that IL
will be wound up In a year from now, which
seems probable.
One OF the peculiar phases Of the situation
is that the younger Dayton must appear
as counsel for the receiver in the proceet-
ingS t. determine the validity ~ his own
claim against the receiver for services
rendered. That IL. he is technically both
prosecution and defence Va regard To his
personal claim. The decision as 20 what
shall be allowed Mr.. Dayton rests ~ course
entirely with TIE referee. but the Attorney
} General Is the only person who 30 far has
| attempted 10 dispute thu full demands made
by the DaytOns.
Five years. IL is said. is not az. unusual
! time for a banking corporation r~ecvivership
rs such things go. hut there Is n convic-
ton in the minds II some people that more
economy could be practised in the matter
Of disbursements for lega! expenses. Mr..
Mott tried hard to save the expense 81 the
present reference Of Mr.. Preston's fourth
accounting, and asked that the fourth Ia
held over and merged into the final ccouD
ing which may he ready by january. But
Justice Mccall declined to entertain such
a lea and decided that the fourth, like
the preceding accouItinge. must take us
regular course. About the same time Justice
Mccall directed that si3.OOi be paid ont Of the
cash In hand to justice. Dayton for services
MIR. Dayton rendered in connection with the
first ard second aC6ountings.