In re Estate of Raley

Appeal by the assignee of the insolvent from an order settling his first quarterly account, and directing: a dividend to the creditors.

1. Error is predicated of the action of the court below in disallowing a number of the items of the account. Among those-disallowed were three charged by the assignee as having been paid out for attorneys fees—two hundred dollars to Jackson Hatch, twenty-five dollars to W. C. Kennedy, and fifty dollars to-the Ratio Collection Agency. As to these items it appears that prior to going into insolvency Raley made an arrangement with Marcuse and Barbieri in the nature of an assignment for creditors, by which they were to take his property and out of the proceeds pay his debts. Under this arrangement certain outstanding accounts of Raley’s came into the hands of Marcuse and Barbieri for collection, and in making such collection the latter incurred and paid out the above items for attorney’s services. Thereafter, when Raley went into insolvency, Marcuse and Barbieri surrendered the money collected on these accounts, together with the accounts uncollected then in their hands, to the assignee, less the amount so expended by them for attorney’s fees. In Ms…