Omaha daily bee., 1907-02-10
EVEREST REMAINS TRUSTEE
Judge KeFhsrsOn Confirms Action Q
Referee ksyne.
BANKS MUST PAY INTEREST ON DEPOSITS
Court Rules that Those who Do Not
Cannot Garry the Cash of
Bankrupt Concerns In
HIS District.


Judge Smith Mcpherson OF the United
States court yesterday forwarded an order
in the matter Of the bankruptcy proceedings
against the Union Transfer. company con.
irning the appointment by Referee W. 3
Mayne Of Frank r Everest Of this city
as trustee. The appointment was made ~
Referee Mayne after the creditors had
failed to elect and the appointment was
contested by several Of the creditors. A
hearing in the matter was held before
Judge Mcpherson when he was in the city
last week. At the commencement Of the
bankruptcy proceedings Mr.. Everest had
been appointed receiver by Judge MePher-
son.
ACCOMPANYING the order is a review by
the court OF several OF the matters pre-
scented TO him at the hearing. Relative 20
the opposition TO the appointment Of Mr..
Everest, BY some Of the creditors on the
grounds Of his alleged close connection
with the First National bank. Judge Nc
Pherson says:
All parties before me in open court
fhroueh' their counsel. concede that MI
Everest possesses the qualifications lhat
I believed him TO have But the ob1eetoIs
saw that he ought not to act In this case
because of the fact that he Is q partner
OF a stockholder. director and vice presl-
a n.
creditor of the bankrupt concern, has re-
ceived unlawful preferences which should
be recovered back by trustee, Ano TOT
this reason directors say that he WIZ not
be efficient and prompt as TO his duties
In my opinion this places too low an esu-
mate upon man otherwise ntteo 10,
Controlled by matters of that kind OF
course. do not know the merits OF isck
OF merits. OF the question as 70 Nne.ne sr
not But do know that the question will
be investigated and be determined In the
open, with the riFht 70 s hSse ,h 5ne court
and higher courts Therefore, the mere
fear that an honest and capable man VIII
not do his duty is not sufficient ground 10
require his condemnation IN advance by
a removal from an official position, and
by the records OF this court, thereby Placing
a stigma upon both his character and rep
utation II was Of but little Importance
whether Mr.. Everest or some other suit
able person was appointea IN tne e, n mrs.
aiderable Importance whether he SHAH De
removed without fault upon his part.
Discussing the duties OF the trustee
| Judge Mcpherson says;
The law requires these assets 20 be as
| promptly reduced an possible into money
| and the law requires that as soon eS re-
| duced to money that the money shall De
claims are established. The money pc
| longs to the creditors and they should have
il promptly. II Is worth more 70 sne a1a,, ,s
\ their money they should have Il. and have
| IL without needless expense. ana WiInoeI
1 senseiess litigation. and should have "
without extravagance OF ices ana anow-
ances And It is proper 20 remark potn
as TO this case and all others. thar D@n ~.
4 ia fees and allowances. but are formeo lot
the benefit OF creditors and OF creoitors
only. OF course, II claims are contested
/, sufficient money will be withheld 70 pay
/ such creditors In the event that In the enc
their claims are established, and IN ne
meantime such money thus withheld snoulo
| carry interest from the depository bank
Regarding the disposition OF the cash
assets OF the bankrupt concern coming into
the hands Of the trustee. Judge Mcpherson
expressly orders that they be deposited n
national banks willing 20 allow interest or
them. On this point he says:
I fail 20 find any statute requiring inter,
| est on these deposits, but some time ago
reached the conclusion, and such IL now
the policy In this district. that deposits
| 10 be left for any considerable time mus
| bear interest for the benefit OF the creoi'
tors. Some banks have protested against
this. but have been promptly Informed tnal
II they do not comply that they wlll BOT ~
] allowed to act as such repositories. a.
readily selected which VIII gladly pay cur
rent rates Of interest on deposits.
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