The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-09-03
SOME REAL JUSTICE.

Judge Smith Mcpherson. of the
federal court, recently handed down a
decision at Kansas City, Mo, which is
we'll worthy of special attention and
the applause and commendation OF
everyone. He made most material
slashes in the fees demanded by the
receiver and his attorneys who had
charge of the property of the Great
Western Life Insurance company dur
ing the process of it's reorganization.
c. S. Jobes was the receiver appointed
for the company. He served in this
capacity a little more than three
months. For his services he de-
manded no less than $4,000 and
likely considered himself modest in
presenting this claim. Then he asked
$500 for fees for the two attorneys
employed by him in the receivershlp
proceedings and other fees for the
receivership brought the total In
round numbers up to $4,000, sum
inst about one-quarter of the capital
stock of the company. If these
exorbitant fees had been allowed 1t IS
not probable that the company coulo
have been reorganized without an I'M
usual and improper drain being made
on it's stockholders. But Judge NC
Pherson did not allow these fees by
any manner of means. He cut MI
Jobes's fee to $4,000 and the lawyers
fees to $4,000. In his decision on this
subject Judge Mcpherson said:
How it can be expected that this
court will allow such bills 1 cannot
understand. The court is dealing with
these funds as protector of the
creditors. including the stockholders-
who are creditors after the debts are
paid. And if such allowances should
be made again not only would the re-
organization scheme collapse, but the
bids of the Kansas City Life Insur-
ance company or the Philadelphia Life
Insurance company, ifapproved, would
not realize the money to make such
payments. And if allowed the cred
itors other than the stockholders
would have to have large sums de-
Quoted from their claims in order to
make such payments. Now, can be-
lieve that the receiver of this kind
of a concern for three and one-third
months could earn that amount? L
want to be, and will be, not only fair,
but liberal, in making compensations,
believing at all times that the laborer
is worthy of his hire"
This action of Judge McPherson's
is really refreshing in these times
when it has been the custom of
referees in bankruptcy proceedings,
and federal judges for that matter
also, as they have to affirm the re-
ports of the referees. to be more than
liberal in the award Of fees to re-
ceivers, attorneys and others who are
mixed up in the actions. If there is
a time when the remaining assets of a
lettering company should be conserved
for the benefit of its creditors and
stockholders it is while 1t is going
through the throes of receivership.
Many a concern which has become
financially embarrassed for the time
being has been placed beyond any
possible chance of regaining its feet
by the assaults which have been made
on it's finances by the officials
charged with the receivership of it.
That these assaults have been upheld
in a way by federal judges who have
the last say on all the claims of this
kind incident to a receivership has
been little less than a disgrace to the
courts of the country. The halt called
by Judge Mcpherson is opportune and
most proper. And it is to be hoped
that it is an example which will be
generally followed by other judges on
the federal bench.