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

Closing of some $3.50 banks in the United States
during 1884, with resulting foreclosures, bankruptcies,
and receveshps gives special interest to the article
on 1.-THE Fee Feed-Bag,' by Mitchell Dawson of the
Illinois bar in the American Mercury.
The fee system had its origin in the institution of
the justice of the peace which took, hook line,
and sinker, from Britain AS one 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 secure
his income solely through fees 1927 the justices
were on the fee system in fortyfour states and this
condition has not changed notably in the last five
years,
The fee system puts premium conviction and
favortism If the justice convicts man in a Grim
inal case, he gets his fee directly and promptly If
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 dependabity
from large clientele who can refer cases to him
with assurance.
AS a result, it is popular saying in civil cases
that ~. p" stands not for justice of the peace, but
for Judgment for the plaintiff"
Far more serious, however is the fee system as it
operates with receivers, their attorneys masters in
chancery and the like-all more powerful fossy and
expensive than the humble justices We have here
pointments and of high fees rendered for services
Take bank receiverships. They probably are the
most efficient of the lot the best supervised and the
freest from political venalty In the of receiv
ers for closed federal banks the comptroller of the
currency makes the selections, Yet, even in bank
receivershps there is plenty of evidence that they
often are political plums
"In one urban district for instance a casual in
specon discloses that bank receverships have been
handed out to party leader in the state legislature
a 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 probate judge
The political hook-up is even more striking when
examine list of those appointed as attorneys for
bank receivers"
Even in the of federal receiverShps where the
fees supervised by the federal courts vast sums
are eaten up in fees and administrative costs.
THE last report of the attorney general of the
United States shows that fees allowed to receivers
trustees, masters, marShalS and attorneys in bank
rupcy cases alone for the year ended June 80 1881
amounted to S9,7116O5 and that other expenses of
administration brought the total cost to s19777o6s
for collecting and distributing assets valued at $50
5S5,07o. A motley congregation of parasites swarms
through every bankrupt estate demanding fees know
ing they will be paid"
Fees in state bank receveTShipS controlled less
closely than in national bank cases. In one state
bank case bank had resources of S975L6l and
deposits of sl,22s,7o4. over a period of eighteen
months, the receiver got s2OS4O his attorney sss78
and clerical help s24l3O But not cent in dividends
was paid to the creditors.
Masters of chancery are especially notorious for
their charges. One asked $4,000 for 2s2 days of
service of five hours EACH The court finally cut it to
s4s25O.
When 1t comes to such lucrative and relatively I'M
supervised pums receiverships 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 lEeceiver