New-York tribune., 1908-06-06
RECEIVERS FEES CUT
REDUCED sJ5 900 EACH.
KnickcrbOcker Trust SaUes SEQ 900
bY appellate DiUiSOn Ruling.

The receivers and their counsel. who to get
si5.oo0 each for their work in putting the kncker
booker Trust Company it's feet after its
pension last fall. through the order of Justice
Clark. OF the Supreme Court. had their aotments
cut down TO $4,000 by the Appellate Division yester
day. In the decision. written by Justice Gaynor.
the Appellate Division says the amount allowed
was SO grossly excessive to amount a
spoation of the Of the trust company and
the order must be reversed or else modified for
that reason To allow it to stand would implant
general distrust OF the administration of Justice.
After Justice Clark announced his decision on
March Is the state appealed
The receivers Ernst Thalmann. Henry c.
Ide and George l. Rives. They appointed
October 20. 1907. and served five months. George w
wickersham .cted their counsel Mr. ThaIma m
said the receivers believed they earned fully
$4,000. The decision. while written by Justice Gay
nor. was concurred in by Justices Woodward.
jerks. Hooker and Miller II says:
It was in order. the said accounting and dis
pensation and expenses to be fixed and ordered paid
out of the assets before they should be
IN the accounting of executors. trustees and
ers II is not necessary TO institute separate
proceeding for that purpose, and it is done.
1t is part and parcel of the accounting
The claim that the court had Jurisdiction
fix such compensation and expenses is therefore
without foundation But the amount allowed was
of the of the trust company. and the order
be reversed else modified for that reason
of the administration Of justice justice The temporary
receivers served for only five months The allow
of $4,000 to each for compensation and the
to their counsel. in all the great sum of
100000 is so disproportionate as not to wear me
appearance of unhampered judicial discretion ana
Judgment. but of having been arranged by agree
rectors of the trust company and adopted by the
inadvertently or without the exercise OF its
controlling Judgment and discretion
This also appears from the peculiar form OF the
order-viz. that the fixed should he PAID
Officers promptly did fnasmuch the first duty
of the directors of the trust company is to be dill
trust company fixed as low as possible IL seems
strange that they should sena coonSsr sd baoU n
rnparts strange moral aspect 70 the case 20 sat
assume Maternal supervision the directors of
the trust company but should be satisfied with or
let pass what they willing to do in the premises;
but if there could be any all in such sus
gestion in any this is not such case
MIR. Thalmann said that Justice Gaynor had no
more ability to judge the amount OK 'he Zee ti'd
he (Mr Thalmann) would have to take his place
on the bench and decide cases in his court The
receivers he said. had handled over sloo"o'Vp IN
their five months work, and had accomplished tneir
duties so well that they had actually mace money
for the company.
GenersI Jackson by declaring that he was only
seeking notoriety when he brought the SUIT anu
that he had no idea of the value OF the Work per
formed or of it's magnitude we invited MIN o"
several occasions to come down and rev1e" our
work" he added. but he never came near US anu
as have stated he had no conception OF What We
had to do or the intellect and ability necessary
% .ccomplish II successfully Perhaps he thought
We ought do it for nothing
Under the law give the State superintendent
Of Banks the power liauidate banking 1nsttu-
tion the heavy expenses of receivershlp VIII oe
done away with. This was shown IN tue case ol
the Home Bank of Brooklyn. which resumed Ousl-
ness last Thursday after having been IN tne hahos
of the State Banking Department for forty-'"o
davs at total expense of only Sl9n Al the
a,na rate the cost of the Knickerbocker receiver
ship would have been $40