Evening journal., 1913-12-18
COURT GRANTS
COUNSEL FEES
IN STEEL CASE
Mr.. Townsend Contends Law
yerS' Claims We're ExCeS-
Sive Compared With Re-
CeiVerS' Fees
JUDGE BRADFORD CUTS
DOWN ONE ALLOWANCE


ances In the case of the Diamond |
State Steel Company receivership.
Daniel Corbit and James Crane Hig-
gins. executors of the estate of An
thony Higgins, were allowed S2,2oO
for the services OF Mr.. Higgins IN
connection with the receivership case.
This was the amount asked for.
Mason and Edwards, a Philadelphia
firm. who represented the general
creditors, who excepted to the ac-
counts OF the receivers, were allowed
81 500 for fees, the amount asked tor.
Horace G. Eastburn, who worked
with Mr. Mason in the case, was al
lowed $3.50. He asked for $1,000.
The allowances we're made to the
LAWYERS as counsel for the bondhold-
ers and creditors in the receivership
proceedings. Sylvester ID. Townsend
Jr., representing Mrs. Howard i.
Wallace, objected to the allowance OF
compensation, and raised the points
OF whether the court had authority 70
compensate holders and creditors out
of the fund. and If II had such author
ity. what amount should be paid. MI
Townsend submitted his argument IN
brief to Judge Bradford. In the
course of his brief. Mr.. Townsend set
forth: "The petitioners do not claim
to have filed their exceptions on De-
half Of all creditors, and to nave
created the fund. The fund is approx
imately $4,000 more than when the
exceptions we're filed, and It Is 70 be
assumed that in a case of the magnl-
tude of this one, that the court might
very probably have cut down the al
lowance asked on behalf of the re-
II .srta oh
iections whatever on part of the
bondholders and creditors. And It is
in fact. to be assumed that the court
might also, upon examination made
through a Master appointed with
out any application in that behalf,
have sur-charged the receivers to
some extent at least While 1t is ad-
mitted that the principle is general
that trust estate must bear the ex-
penses of its administration, It is sub
mitted that the position of the petit
TONERS is that of attorneys represent
ing creditors who are making ali
proper effort to secure all, or as large
a portion as possible, OF the debts due
their clients"
Mr. Townsend in his bref, continued
Assuming that the court has author
ity 60 compensate the counsel for the
bondholders and creditors in this east
out of the trust fund, the question ther
arises. What amount should be paidg
"While this is a matter entirely II
the discretion of the court. the petition
,rs have submitted a statement OF th'
work done by them and have suggeste'
amounts with which they would be sat
ished. As before stated, it Is not denie'
that the petitions correctly state wha
work was done. but the conclusions stat
ed in the petition are at least open Z
argument. In the first place It Is sub
mitted that If no exceptions had beei
iled. no allowance would have bee
made TO any of the petitioners, for th'
reason that they could not contend tina
they had in any way contributed to tn
funds secured. The question thel
arises
eNNhat services have been rendere
since the filing Of the report TO whcl
exceptions were takeny
"The undersigned submits below 10
consideration by the court. the result
of his inquiries and Investigations con
eerning some of the facts. he canno
vouch for the entire accuracy thereof
for the reason that he has not had sui
fcient time to verify the figures give
and refers to the records for their Ver
fication.
"He is advised that the firm of Ward
Gray and Neary represented the re
ceivers in all of the proceedings sine
June 10 1870 and that the Master
who had a full knowledge of the wOr
done by them. has allowed them 81
600 for the services rendered.
"That on June 10. 1910. the dat
E1pn their rnnOF
20 which exception was taken, tn
following fund was on hand for dis
tribution:
In the registry Of the
court ,............. sol 'SSl . =
In the hands of receivers. 6s,6So.z
Total ........ Sl2O,l 1901
That on December s. 1918. the dat
when the receivers made their hna
payment. the following fund was o
hand for distribution
In the registry Of the
court .............. po1'o9l' !
in the hands Of receivers. 7s,oS-'
Total $50 O569.l
"1hat before arriving at SAID balah'
OF sl3O56g.22 the amount paid into %
n
1918. The sum of 1880 had been paid
counsel for the receivers. which amour
was charged for services rendered rri'
to June 10, 1910. That the two la
mentioned amounts. making a total
Sli0.3l922, shows an increase IA q
fund. after the payment Of the expense
incurred subsequent to June 10, 1910
s2O. l52.4a. That the distribution of Il
fund at OF about the present date rath'
than ut or about june 10, 1910, meal
That the distributes have lost the N
Of tho s5l .53l.i As in the registry of Il
court the interest OH which would
approximatelv SlO.SoO. and have lost q
use of the s6SG35.25 in the hands OF tl
receivers. the interest OF which over aI
above The 2 per cent. allowed. won
amount TO approximately $4,000, whi'
two items make a total or S2O,4OO,
more than the fund has increased. Their
fore. If these figures he correct, il W
be sem that the distributes have bee
benefited by reason OF the exception
fled only to the extent OF whatev
amount The court would have allowed I
receivers and their counsel over ~
above what it mas allowed. Even the
this conclusion is based upon the =
sumniiou that the receivers would n
have bcen surcharged unless eNccptlo
had heen fled II would, therefor
soem that when the Inconvenience ~
delav 10 the distributes Is considere
anil when what probably would ha
heen tho increase in the fund witno