The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-01-30

COSTSSHONN
Lawyers Get Little More
Than One Percent OF
N. E. Sums Handled
BY J. c. Baskerville
The Times-iiews Bureau
Sir Walter Hotel


RALEIGH, Jan. 30.-Another
batch of 156 reports. covering
the amount of collections from
the 1876 banks now in process of
liquidation and the cost of liqui-
dating these banks for the period
from June l., 1888 to. January /,
1884, has just been sent over TO
the office of Secretary of State
Stacy w. Wade by Commissioner
of Banks Quincy P. Hood. This
report is required of the state
banking department every six
months as a result of an act
sembly. At one time the 1888
passed by the 1888 general as
house passed a resolution de-
handing q similar statement from
Commissioner Hood within three
days. to which he replied that. it
would be impossible to furnish
such statement within that short
length of, time but that he would
get it up as soon as possible. 1t
was not possible to get the COM
plete statement on all the banks
in process of liquidation until
June l after the general assem-
bly, adjourned, although Commits
sioner Hood utilized almost his
entire liquidating force and office
force in the preparation of the
report.
The report just completed for
the seven months from June l,
1893 to January l, 1884. shows
that the state banking department.
collected a total of S6,916,318.63
from the 157 banks in process of
liquidating during this period.
The report also shows that a total
of $26,1S3,S11.29 has been col
lected by the department from the
assets of closed banks since the
liquidation of all closed banks
was placed under its supervision
in January. 1927.
The main thing that certain
members of the house of the
1888 general assembly wanted to
know. and especially Representa-
4, tive Sullivan of Buncombe coun-
ty. was how much of the total
collections from closed banks had
gone to attorneys in fees. evident
ly in the belief that some lawyers
were getting too much from these
banks. But the report just filed
shows that of this total, the
amount spent for attorneys fees
has amounted to only little more
than one per cent, or an average
of only $1,981 per banker or an
average of only $5S3.64 per bank
year The total outlay for the en-
tire period since January. 1927,
for attorneys fees in connection
with the liquidation of these
banks for this same period was
only slightly more than one-half
Of one per cent of the total col
lections and the amount paid to
departmental auditors represented
only seventeen one-hundredths of
one per cent of the collections.
During the past seven months
and up to January l 1884, to-
tai of $6,916,S18 has been col
lected from the assets of the
banks still in process of liquida-
| ton and of this amount only $685.
1877 has been paid out in. attor-
ney's fees, an average of only
$546 per bank or $7S per bank
month This is only slightly more
than one per cent of the total col
lections made in this period. In
dependent auditors were paid a
total of $3.50 in this period, or
eight one-hundredths of one per
cent of the total collections. while
departmental auditors were paid
SO, 1875. or fifteen one-hundredths
of the collections,
For the entire period from Jan.
| Is. 1927 to June /, 1888, the ratio
of cost of attorneys fees to total
collections was only slightly more
than one per cent; for indepen-
dent auditors only nine-tenths of
hone per Get, and for departmental
! auditors, only seventeen one-hun-
| dredths of one per cent.
The preparation of these semi
annual reports requires almost all
the spare time of both the iqui-
dating forces and the regular of
fee forces of the banking depart
ment. Commissioner Hood said.
The cost of this work is consid-
cradle. but is included in the
maintenance cost of the liquidat-
ing and other divisions of the
banking department. A total of
62S detailed reports were made,
or four complete reports for
each of the 157, banks in process
OF Liquidation. Hood pointed out.