New-York tribune., 1911-04-09
REDUCE RECEIVER FEES
Court Cuts Charges Made in
Oriental Bank Case.
JUSTICE INGRAHAM OBJECTS
Saws There Was No Reason for
Appointing Carnegie Trust
and Schneider.

The bitter controversy in 1908 between the
depositors of the Oriental Bank and Will
iam Schuyler Jackson. who was then At
torney General of the State of New York.
over the latters action in having tempo
rary receivers appointed was recalled yes
terday by decision OF the Appellate Di-
vision Of the Supreme Court in passing on
the expenses of the receivership which the
court considered unnecessary
The majority Of the bench decided IN
favor Of cutting down the charges favor
ably passed on by former Judge D. Cady
Herriok as referee. while Presiding Justice
Ingraham in his dissenting opinion went
on record as opposed to allowing any
charges whatsoever.
About the time that Attorney General
jackson had the Carnegie Trust Company
and Henry Schneider appointed as receiv-
ers Of the Oriental Bank he also made sew
eral applications for the appointment Of re-
ceivers for other institutions. In the case
Of the Oriental Bank he explained his ac-
ton by saying that the plan whereby the
Metropolitan Trust Company was TO ad-
vance the bank sufficient funds TO pay on
its creditors was an effort to loot the bank
and deceive the depositors.
Justice Platzek appointed tho receivers
asked for and the depositors became
aroused over the action of the Attorney
General which they assailed as unneces-
eary interference III the affairs Of the insti-
tuition tust at a time when it was getting
out of its difficulties following the panic OF
1907. The bank officials also objected. An
action was brought TO have the receiver
ship vacated. and Justice O'Gorman grant
cd the application. His decision the Ap-
pellate Division upheld. saying that Jack
son acted too hastily In having the receiv-
ers appointed Justice Ingraham expressed
,he view yesterday that the receivershp
was established for the sole purpose OF
helping the receivers.
Then came the claims for the expenses
for that brief receiversnip, amounting 10
s10.s72. Former Judge Herrick was ap-
nointed 10 pass on the accounts. and while
he did not approve all Of them. the APP
pellate Division favored still further cut.
Justice Davis approved the report of Judge
Herrick.
one of the expenditures objected to was
that of s.. 80 for counsel fees paid to John
=. stanchfeld and Professor Charles A.
Collin. The latter is the man who recehuy
.bors the letter that Governor Dix sent to
District Attorney Whitman instructng MIN
IN consult with Attorney General Carmody
in his investigation into the affairs OF the
carnegie Trust Company 1t will be re-
.l,g finiC "a
delivered to the District Attorney by
stephen c. Baldwin. counsel for the ofilcldis
Of the Carnegie Trust Company. This claim
for counsel fees cut TO S.VO. Ihe
Carnegie Trust Company asked 5000
fee as receiver Of the Oriental Bank. Only
$1,000 was allowed which amount Schneider
will also receive. The referees fees ana
expenses amount 10 500 more.
The presiding justice said that there was
no need for the receivers, and all that
their appointment could have accomplished
vas TO enable them to appropriate TO them
selves fees and expenses from the assets
belonging to the creditors and stockhold-
ers Of the Oriental Bank. mo court ad-
ministering Justice" said Justice Ingra-
ham, IF the facts were known, would even
have entertained an application for the
appointment of receivers"
Justice Ingraham went over some or
these facts that he referred 10. II ap-
peared. he said. that the Carnegie Trust
Company had been negotiating with the
Oriental Bank to advance the latter
money TO pay its Indebtedness. but that the
creditors were not satisfied with the ar
rangement preferring that made with the
Metropolitan Trust Company
II appeared further. said the justice, that
the president of the Carnegie Trust Com
pany, who at the time was Charles {.
Dickinson, who recently died under unusual
circumstances. had been in communication
with Attorney General Jackson. He had
asked. the justice said. to be appointed re-
ceiver Of the Oriental Bank, which fact
the Attorney General did not tell the court
IN asking for the appointment OF the
Carnegie Trust Company as one Of the
Oriental receivers.
Justice Ingraham said that he could not
see that the receivers were entitled 10
anything fees. there was no service
rendered. He declared that II they had
any claim II should he preferred against
tho state. as the court had no power to
compel the bank TO pay the receivers.