The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-02

Closing of some 1920 banks in the United States
during 1884, with resulting foreclosures bankruptcies
and recevershps gives special interest to the article
on THE Fee Feed Bag by Mitchell Dawson Of the
Illinois bar, in the American Mercury.
The fee system had its origin the institution Of
the Justice of the peace which took, hook, line,
and sinker, from Britain. AS wag has remarked,
this meant quite literally paying for justice by the
piece" like any other commodity.
The justice usually gets no salary and must
his income solely through fees In 1927 the justices
were on the fee system fory-four states and this
condition has not changed notably in the last five
years.
The fee system puts premium on conviction and
favoritsm. If the justice convcts man in a GRIM
inal case, he gets his fee directly and promptly. II
he acquits he must get it through appeal to the
county, accompanied by delay and red tape.
In civil cases. the judge will not get much work
unless he has developed reputation for dependability
from a large clientele who refer cases to him
with assurance
AS result, it is popular saying in civil cases
that - Pr stands not for justice of the peace but
for judgment for the plaintiff"
Far more serious however Is the fee system as 1t
operates with receivers their attorneys masters in
chancery and the lke-au more powerful, flossy, and
expensive than the humble justices. We have here
impressive record of political favoritism in ap-
pointments and of high fees rendered for services
Take bank receiversnps They probably are the
most efficient Of the lot the best supervised and the
freest from political venay. the case of receiv-
for closed federal banks the comptroller Of the
currency makes the selections Yet, even in bank
receverships, there is plenty OF evidence that they
often political plums:
In one urban district for instance, casual in
hat
handed out to party leader in the state legislature
former public administrator, the son of a county
commissioner, the husband Of former collector Of
internal revenue, former treasurer Of park board
and former assistant to a probate Judge
The political hook-up is even striking when
we examine list of those appointed as attorneys for
bank receivers"
Even in the of federal receverships where the
fees are supervised by the federal courts vast sums
are eaten up in fees and administrative costs
The last report Of the encouragement of the
United States shows that fees allowed to receivers
trustees, masters marshals and attorneys in bank
ruptcy alone, for the year ended June 80 1881
amounted to $e,7116O5, and that other expenses of
administration brought the total cost to $1e777o6s
for collecting and distributing assets valued at $780,
5S5O7O "A motley congregation of parasites swarrnS
through every bankrupt estate demanding fees know
ing they will be paid"
Fees in state bank receivershps are controlled less
closely than in national bank cases. In one state
bank case bank had resources Of $s75lsl and
deposits Of $l22s,704. over period Of eighteen
months, the receiver got $2O34O his attorney slsS7s
and clerical help s241so. not cent in dividends
paid to the creditors
Masters Of chancery are especially notorious for
their charges. One asked $4,000 for 282 days of
service Of five hours each. The court finally cut 1t to
$40 $50.
When 1t comes to such lucrative and relatively un-
supervised pums receyerships for business blocks
apartment houses, and the like the situation has,
quite literally. attained the proportions OF racket.
( In the case Of one apartment hotel, the receiver