The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-07-27
Judge Martin J. Wade Rules That
Attorneys Tall and Hornish
May Have $3.50 In Sage
Bankruptcy Matter.
ADVICE ON CHARGE
Federal Judge Outlines What 10 the
Proper Charge for Service Rem
dered by Attorneys for Their
Clients.

Judge Martin Wade has filed wish
Deputy Clerk Wahlgreen in the United
States district court an opinion in the
matter of the claim of j. S. Tall and
John P. Hornish for a $2,5GS-00 attor-
neys' fee on behalf of the petitioning
creditors in the David H. Sage bank
ruptcy matter.
The court orders an attorneys fee of
$3.50 in this matter. for all services.
included In the claim. and all claims
in excess are dis-allowed.
In his opinion, Judge Wade refers to
the fact that Attorneys Tall and Horn
ish filed claim as attorney for the pc.
titioning creditors in the sum of ST..
500. Mr.. Tall represented creditors
who claims total $275.07.- Mr.. Horn
ish represented a creditor having a
claim for $4,000.
Upon per diem basis" Judge
Wade says, mo one places the value
of an attorneys fees at more than $50
per day.
Mr.. Tall claimed that he had spent
four or five days in making trips to
Keokuk and in consulting with various
creditors.
Would Surprise Creditors.
"The law contemplates that an at
torney's fee for one attorney shall be
allowed for actual services rendered
in behalf Of the petitioning creditors,
says the court. Strictly speaking,
this allowance should be made to the
creditors. The law contemplates that
the bills shall be paid by the creditors.
and that they shall be reimbursed FROM
the estate I apprehend that the
creditors in this case would be very
much surprised if counsel had present
ed to them bill for $4,000, for the
services rendered"
"No one will claim that the value
of service required in preparing Pc
tition and filing same and procuring
adjudication be more than $500 III
ordinary cases.
Not Proper Charge.
| Much of the service rendered by
Tall was in trips to Keokuk, confer
ring with creditors and attorneys in
an effort to induce them to join in the
petition. l do not consider such sery-
ice in itself a proper charge. In this
case the claims for attorneys fees
exceed several times the amount OF
claim held by his clients. The solicit
lIatlO0 OF QUIET SIculIOiS " JOlu III I-i ,
lpetition is not necessarily the work OF
an attorney, it Is work any business
man can do.
The court holds that the attorney
shall be called in to give advice and
to prepare petitions, but that merely
coming back and forth to induce 9TH
ers to join is not proper service for
which an attorney may charge.
Fee Is Made $3.50.
Judge Wade concluded his opinion
with:
| I'm this case there were some pecu-
liar circumstances, and the estate Is
comparatively large and for these rea-
sons, I feel that an allowance Of $3.50
| is justified, but I feel that any more
than this amount would be in excess
of anything contemplated by the
statute >,
This case was tried at the April
term of the United States district
court and has been under considera'
ton by Judge Wade since that date.
At the trial John M. Dawson represent
ed the claimants and Boyd & Mcktn'
lev represented the trustee In bank
ruptcy in opposition to the claim.