In re Foley

On April 4, 1924, the referee in bankruptcy made an order that the matters above entitled be consolidated. On the 28th day of April, 1924, the referee made an order allowing compensation to William E. White, who, prior to his election as trustee, had, under appointment by the court, acted as receiver in the matter of E. Y. 'Foley, Inc. On April 28, 1924, the referee ordered that a first dividend of 5 per cent, be paid to the creditors. Withers Bros., who were original creditors of E. Y. Foley in an amount approximating $20,000, made objection to the "order of consolidation and to the order allowing compensation to the receiver, also to the order declaring the dividend. The same creditor petitioned for a review of the orders mentioned and the matter has been argued and submitted for decision.

There is scarcely room for debate upon the question of the propriety of the order made allowing compensation to the receiver in Foley, Inc. The receiver, it appears, rendered full and very competent service in the handling of • the business of the bankrupt prior to the election of himself 'as trustee by the creditors; it being admitted that under the receiver’s management a profit of…