Evening journal., 1914-09-08

Having completed draft Of a report,
containing "a typewritten pages in the
matter of the trust estate OF the Dia-
mond State Steel plant and property
as referred to him as special master by
a decree of the chancellor, dated April
Both. this year, the Hon. John r. Mich
olson has sent out notices stating that
a copy of such draft il filed at his Of
fees. 330-332 DUPONT Building and that
exception must be fled in writing ON
OF before - o'clock noon, Thursday,
September II. As soon thereafter, as
practicable, Mr.. Nicholson will file the
draft report with such supplemental
report or reports as may be necessary
with the register in chancery as final
report.
The report itself is most comprehen-
sive and the magnitude of the work re-
quired devotion TO this particular task
since the chancellor referred the mat
ter TO the special master. No effort can
be made to show exhaustively as does
the report, the findings of the special
master and therefore only a summary
can be given.
The sale of the Dismond State
Steel porperty by the trustees,
George S. Capelle and John S. Rich
ardson, under orders of the Court
OF Chancery, was confirmed on April
is and the accounts were filed on
September 80. Mr.. Nicholson was
appointed special master to examine
the trustees accounts and hear eX-
ceptions to all the claims made
against the balance of the funds in
the hands of the trustees, including
the claims of the trustees. the allow
ances for their services and those
of their counsel, Robert H. Rich
ards.
The report was filed on Friday,
September 4, and included a review
of all the transactions and proceed
/ ings involved in consequence Of the
receivers sale and its purchase by
a group, numbering about so, who
had been for the most part bond
holders OF the company before it went
into the hands Of receivers.
The exceptions filed to the account
we're first TO the payment by the trus-
tees of premium on bond given to Sc
cure payment of the purchase price,
S575.OO0 at the receivers sale, which
premium amounted to S4,125.
This bond was given under the or
Ger of the United States Court, ap-
proved by the parties participating In
the purchase Of the property and was
allowed.
Second The payment Of fee Of
/ $500 to Ward and Gray for profess
sional services completed with the
purchasers Of the property by the
persons who are the beneficiaries OF
the trust This also was allowed.
Third: Exceptions to the amount
/ paid for insurance premiums as ex-
/ cessive. amounting in the aggregate
! to S54,21102 This exception was
very elaborately considered by the
q master and as in all three exceptions
mentioned was disallowed and these
payments by the trustees approved.
/ Fourth Exceptions to the amount
( paid in wages during the period of
nearly seven years. in which the trus-
/ tees had control, this amount being
! S26,75039. This was also considered
very elaborately. The exceptions
were disallowed and the payments by
the trustees approved.
Lastly. The payment by the trus-
/ tees to Michaelovitz and Pollock to
whom the trustees had sold a portion
of the plant which they we're not
authorized to do under the trust then
existing but a modification of the
trust permitting them so to do had
been prepared and executed by all
the benefciaries but one CThOmas
DevelOn, of Philadelphia) The valid
ity of this modification of trust de-
pended upon its execution by alls but
the trustees did not wait for final
signature and proceeded on the faith
of the promise of this one beneficiary
that he would sign. When he refused
to sign they we're obliged 70 make
the best terms they could with Mich
aelovitz and Pollock for their bridge
contract and settled with this firm by
the payment Of S2,496. The exception
Z to this claim was allowed and this
payment surcharged on the ground
that it having been made in conse-
quence Of a mistake Of the trustees,
which subjected them TO personal loss
there was no authority TO reimburse
them from the trust fund on account
Of it,
The claims excepted to were:
First John b. Newkirk, for services
$1,000, which was disallowed on the
ground that the evidence had showed
services were volunteered and he had nc
claim against the trust fund.
Second Howard T. Wallace for 500
for services rendered, was disallowcC
on the same ground
Third. The claim Of the trustees fol
their services, $4,000. was discussed in
thirteen pages of the report and IN ma