Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-12-10
WHAT COUNSEL GOT
IN TRUST LITIGATION
Fees of Counsel for Receivers
Where Over sos, 900, 900
Was Involved Amounts to
500, 900 on Compromise.

Anent the widespread discussion arous-
ed by the exorbitant fees allowed counsel
for the receivers in the administration OF
the Inman estate. il is particularly inter
csting to note. from press reports just
how a similar case has been finally adj
justed I'm New York city-that OF the
Knickerbocker Trust company.
The comparison is in every sense apro-
pos. for both estates became involved In
the panic Of 1907 and both have been
made the prey OF avsricious lawyers. The
outcome of the two. however, is striking
~ different. -t
The Knickerbocker Trust company rep
resented s65.O00.0OO OF deposits and intri-
cate interests i'm every part of the world
The Inman estate represented oaly about
81. S00.Oo0 and the process of its admins
tration was. from the legal standpoint,
comparatively simple.
Yet the amazing fact has transpired
that the counsel for the receivers have
been allowed fulk half as much as ali
three of the distinguished firms Of coun-
sci fer the receivers in the Knickerbock-
er Trust company litigation.
II is of further significance to observe
that the receivers and their counsel insthe
Knicizerbocizer Trust company. case orig
lnaIly asked for $500 600 in fees This was
cut BY one court after another until II
reached the sum of only $4,000. Finally.
II was compromised for $4,000. That is TO
saw all the counsei-and they were most
noted in America-received only S6OOVJ
for their services in representing $50, 0'C
or more of capital. while the lawyers In
the Inman estate, of less than $1,000. O0o.
received $4,000 in fees. s-
The situation becomes heightened when
Il Is noted that the counsel b. in the
Knickerbocker Trust company case were
George L. Wickersham, now attorney
general of the Nnited States; Frederick
B. Van Worst and Henry Schurman, the
very leaders OF the American bar. These
men get $4,000 for what they did. Rosser
& Brandon get $4,000. Rosser q BRANDON
tried TO get $4,000. -.t a. $780,
The history of these fees in the knick'
erbocker Trust company case is illumin'
ating. At the outset the receivers and
their counsel asked for 100000. Justice
Lester w. Clark. of the supreme court 81
New York. to whom the matter was APP
pealed, reduced the amount to $500
$4,000 for each of the three receivers and
SIS. 600. forsthe three firms of lawyers. The
matter IVES next carried to the appellate
division of the supreme court. which still
further cut the allowance Of fees dowr
to So. O00-s2o. 900. for all. the counsel and
$4,000 for each of the three receivers
That. is to say the appellate. court of New
York held that the three renowned law
yers in the KnIckerbocker Trust company
litigation were entitled to less than the
receivers counsel got for their compare
lively slight services in the Inman estate
In cutting the fees from $4,000 to $50
| 900 the appellate court declared:
The sum allowed is so excessive as Il
amount TO a spoilation of the assets o.
the trust company and the order must b,
reversed, else modified. for that reason
| To allow II to tsand would be to implan
To allow It to stand would be to implan
justice . .-..-..-. .s s. II. -,.s-..--.t zee.
Following this decision the officers o.
the company and the receivers and thei
counsel arbitrated the1 matter on a bash
/ of $4,000 the three firms of attorney
getting $4,000 each or $4,000 in all, in ;
case where more than $3.50 900 were in
volved.
| The conclusion of this litigation is re
msrkable commentary on the extortionat
/ fees. sought and allowed in the Inmai
estate and il prophecies moreover that tn,
/ day OF the grasping lawyer and the dis
sIpation of an estates substance amoni
fee-seekers is drawing to a close.
| In this. connection 1t is interesting Il
note the policy pursued by the Contra
Bany and Trust Corporation In admins
i tering the Neal bank estate. The Contra
Bank and Trust Corporation accepted tn,
receivership for only 1-2 per cent, JUS
half that allowed by the law. This 2 IL
per cent includes the fee of counsel al
well as that OF receivers. The work to b,
done in this case is vastly more intricat,
than that of the Inman estate case anC
has been prolonged over a greater perioC
/ OF time.
1t is also opposite to observe the fruga
conservatism with which national bank
/ are administered when put into receiver
/ hands. Utmost care is taken to see tina
the property OF. stockholders is not frit
/ sarad a MAY in fees --..-