Evening star., 1926-05-12
JENNINGS PROFITS
DECLARED ILLEGAL
Veterans Bureau Holds His
Commissions Violated
Supreme Court Ruling.

The position OF the United States
Veterans Bureau in the matter of
Commissioner Frederick A. Fenning
accepting % per cent commissions on
bond premiums paid for him out of es-
tates of mentally incompetent per-
sons is that such practice is contrary
to decisions of the United States Su
preme Court, according to a brief filed
today with Herbert l.. Davis, auditor
of the District Supreme Court, by Maj.
Davis G.. Arnold, national guardian
ship officer of the bureau.
Another development in the Fen
ming case today was the selection of
an imposing array of legal talent by
Commissioner Fenning to represent
him at the impending investigation of
his activities by the special subcom
mittee of the House judiciary commit
tee, scheduled to start next Wednes-
day morning.
Frank J. Hogan, Thomas p. Little
page and Levi Cooke were announced
by Commissioner Fenning as his rep
resentatives. Mr.. Fenning also an
nounced that he would be present dur
ing the hearings.
The Fenning case also was
discussed when the Gibson subcom-
mittee which has been investigating
general municipal conditions here
reported on District legislation today.
Claimed Law Not Violated.
The Arnold brief closes the last
phase of the hearing held Saturday
by Auditor Davis at the courthouse,
at which time Commissioner Fenning
personally and through his attorney,
w. w. MILAN, declared his acceptance
of the commissions from the bonding
company was not iD violation OF any
law or ruling. To credit such commits
sions he received to the wards estate,
the Commissioner held, would consti-
tute a violation of the District code.
Mai. Arnold, as a representative of
the bureau, was invited to be present
at the hearing in connection with Mr..
Jennings filing of g. final report of
his committeeship of Adolph Adler,
mentally incompetent war veteran,
transferred from st. Elizabeth's Hos
pital in 1922 to an institution in New
York The father of the veteran has
been appointed committee in New
York and Mr.. Fenning is closing out
this account. The case was utilized to
determine the legality of the commits
sions. and Auditor Davis will report
his findings to Chief Justice Mccoy of
the District Supreme Court this week.
Profit Held Illegal.
If it had not been for the estate
of Adolph Adler, for which Mr..
Fenning was appointed committee"
declared Maj Arnold in his brief,
there would have been no bond to
be made by him in this case; and if
y fo AAI foI
bond some other bonding company
than the one he did, the effect on the
trust estate might have been precisely
the same; but the effect in regard to
Mr.. Fenning Of using the company
he did has been to profit him to the
extent of one-fourth of the premiums
charged for the bonding Of the com
mittee; and the law, as seen In the
light of the two cases above mention
ed (Magruder VS.. Drury and Jackson
VS.. Smith decided by the Supreme
Court of the United States, does not
permit a fiduciary to make personal
profit for himself out of or by reason
of the trust estate. 1t is not material
that the act done does not cause loss
or damage to the trust estate; the
fiduciary may not make use of it to
his personal profit. Any profit or gain
81 uldOc DClOllSo " CAlC II uoI COtdICs
The question Of the 25 per cent
commissions 'calls simply for the ap-
plication of principle of the law
which is well settled and elementary. ="
declared Maj. Arnold. "The principle
is often expressed, in a general way,
by saying that fiduciary shall not
make personal profit by the use, of the
trust estate committed to his care.
But, like all principles of the unwrit
ten as distinguished from the written
or statute law, it is to be found and
seen only in the application which is
made Of it by the courts in judicial
decisions.
Law Found i'm Decisions.
1--WE go to the decisions Of the
courts of last resort and there find,
not the principle in the form Of writ
ten law, fixed and embodied in GER
tain form Of words as Is a statute;
but we see the court applying the
Continued on Page 4. Column ~