116 F. 556 | E.D.N.C. | 1902
This proceeding in bankruptcy is-now presented on the third dividend sheet for final settlement. On the final hearing it is proper the whole record should be before the court, and in the case at bar all deemed essential has been considered. No final settlement can now be had. In Re Cobb (D. C.) 112 Fed. 655, irregularities in the final settlement of a bankrupt estate were pointed out, but for reasons therein stated the estate was settled, and it was there intimated a strict adherence to the rules would thereafter be expected on the part of the officers of the court. Now the consideration of final settlements of bankrupt estates is forced upon the
The facts cited and the remarks made apply to the following drafts of the same date: H. L. Cook, $1.40; R. E. Lee, $18.47; McLean & McLean, $36.43; B. F. McLean, $37.58; C. F. McRae, $57.34; Hinsdale & Lawrence, $245.25; Proctor & McIntyre, $199.48; and others. It is not always required of attorneys to file powers of attorney or even letters of attorney, though either may be demanded at any time, especially when paying out trust funds.
An application is filed and a recommendation is made by the referee for the allowance of attorneys’ fees to the attorneys for the petitioning creditors and for the bankrupt. The petition for the first ignores a former decision on this subject. In re Smith (D. C.) 108 Fed. 39. The court does not feel justified in allowing either claim. Both are exorbitant. The recommendation, though much less, is entirely too much for the services which appear to have been rendered. The court in dealing with trust funds has a discretion which must be exercised, not arbitrarily, but conscientiously, in justice and equity to all. It has no right to bestow these funds because of personal friendship for members of the bar, or from any other motive, except for services ren
No further order will be made in this cause for the distribution of the funds on deposit until a record is made showing a balance sheet which can be understood, and the errors pointed out corrected, the record cleared of-items which require explanations, a final settlement, from which the bankrupt and the creditors can see what has been done with their money. This duty is incumbent on the trustee, the referee, and the attorneys, not upon the court. It does not appear any funds have been misapplied, and it should be said, in justice to all, the court does not entertain any suspicion to this effect, or wish to be so understood, but is pointing out irregularities which might cause suspicions in the future, and which can better be corrected now than hereafter. The officers of the court should be above suspicion. The court' is attempting to point the way to keep them so.