essary to the validity of their every act concerning the administration of the estate.

There must be appointed at least one or three trustees (sec. 44); and the death or removal of one shall not abate any suit or proceeding which he is prosecuting or defending at the time of his death or removal, but the same may be proceeded with or defended by his joint trustee or successor in the same manner as though the same had been commenced or was being defended by such joint trustee alone or by such successor. (Sec. 46.)

Sec. 48. Compensation of trustees.-a. Trustees shall receive, as full compensation for their services, payable after they are rendered, a fee of five dollars deposited with the clerk at the time the petition is filed in each case, except when a fee is not required from a voluntary bankrupt, and from estates which they have administered, such commissions on sums to be paid as dividends and commissions as may be allowed by the courts, not to exceed three per centum on the first five thousand dollars or less, two per centum on the second five thousand dollars or part thereof, and one per centum on such sums in excess of ten thousand dollars.

[Act of 1867. SEC. 17. . He shall be allowed, and may retain out of the money in his hands, all the necessary disbursements made by him in the discharge of his duty, and a reasonable compensation for his services, in the discretion of the court.

SEC. 28.

In addition to all expenses necessarily incurred by him in the execution of his trust, in any case, the assignee shall be entitled to an allowance for his services in such case on all moneys received and paid out by him therein, for any sum not exceeding one thousand dollars, five per centum thereon; for any larger sum, not exceeding five thousand dollars, two and a half per centum on the excess over one thousand dollars; and for any larger sum, one per centum on the excess over five thousand dollars, and if, at any time, there shall not be in his hands a suflicient amount of money to defray the necessary expenses required for the further execution of his trust, he shall not be obliged to proceed therein until the necessary funds are advanced or satisfactorily secured to him.]

§§ 48, b, c, 49, a.] ACCOUNTS AND PAPERS OF TRUSTEES. 253

The commission is to be computed on the sums to be paid as dividends and not on the income or outlay, thus making the trustees financially interested in the careful management of the estate, and reduces to a minimum the dangers of extravagant expenditures. The deposit of five dollars is not required in case of a voluntary bankrupt, provided he accompanies his petition with an affidavit setting forth the fact that he has not and cannot obtain the money with which to pay his fee. (Sec. 51. See also Orders XXXV, 4.) While the compensation thus allowed trustees is to be in full for the services performed, it does not include expenses necessarily incurred in the performance of their duties and allowed upon the settlement of their accounts. (Orders XXXV, 3.) Compensation of trustee. In a case so doubtful that investigation is necessary, the assignee is entitled to his commission, in preference to one who has obtained judgment against him for a wrongful conversion as assignee (In re Oberhoffer, 17 N. B. R. 546; 9 Ben. 484; Fed. Cas. 10396); and where an assignee desires to charge estate for professional and clerical services rendered himself, he must first obtain leave of court; and where the application is withheld until final account, he must prove the necessity and reasonableness of the charges. (In re Noyes, 6 N. B. R. 277; Fed. Cas. 10371.)

b. In the event of an estate being administered by three trustees instead of one trustee or by successive trustees, the court shall apportion the fees and commissions between them according to the services actually rendered, so that there shall not be paid to trustees for the administration of any estate a greater amount than one trustee would be entitled to.

c. The court may, in its discretion, withhold all compensation from any trustee who has been removed for cause.

Upon the complaint of creditors, the court may remove trustees for cause, upon hearings, and after notice to them. (Sec. 2-17.)

Sec. 49. Accounts and papers of trustees.-a. The accounts and papers of trustees shall be open to the inspection of officers and all parties in interest.

[Act of 1867. SEO. 15. . The assignee shall keep a regular account of all money received by him as assignee, to which every creditor shall, at reasonable times, have free resort.]

The failure of the trustee to permit a reasonable opportunity for the inspection of the accounts relating to the affairs of the estate and the papers and records in his charge, by parties in interest, when directed

by the court so to do, works a forfeiture of his office and renders him liable to punishment. (Sec. 29, c.)

Sec. 50. Bonds of referees and trustees.-a. Referees, before assuming the duties of their offices, and within such time as the district courts of the United States having jurisdiction shall prescribe, shall respectively qualify by entering into bond to the United States in such sum as shall be fixed by such courts, not to exceed five thousand dollars, with such sureties as shall be approved by such courts, conditioned for the faithful performance of their official duties.

[Act of 1867. SEC. 3. Before entering upon the duties of his office, every person so appointed a register in bankruptcy shall give a bond to the United States, with condition that he will faithfully discharge the duties of his office, in a sum not less than one thousand dollars, to be fixed by said court, with sureties satisfactory to said court, or to either of the said justices thereof.]

b. Trustees, before entering upon the performance of their official duties, and within ten days after their appointment, or within such further time, not to exceed five days, as the court may permit, shall respectively qualify by entering into bond to the United States, with such sureties as shall be approved by the courts, conditioned for the faithful performance of their official duties.

[Act of 1867. SEC. 13. . The judge at any time may, and upon the request in writing of any creditor who has proved his claim shall, require the assignee to give good and suflicient bond to the United States, with a condition for the faithful performance and discharge of his duties; the bond shall be approved by the judge or register by his indorsement thereon, shall be filed with the record of the case, and inure to the benefit of all creditors proving their claims, and may be prosecuted in the name and for the benefit of any injured party. If the assignee fails to give the bond within such time as the judge orders, not exceeding ten days after notice to him of such order, the judge shall remove him and appoint another in his place.]

The notice to be sent to the trustee of his appointment should contain a statement of the penal sum of his bon 1. (Orders XVI)

c. The creditors of a bankrupt estate, at their first meeting after the adjudication, or after a vacancy has occurred in the office of a trustee, or after an estate has been reopened, or after a composition has been set aside or a discharge revoked, if there is a vacancy in the office of trustee, shall fix the amount of the bond of the trustee; they may at any time increase the amount of the bond. If the creditors do not fix the amount of the bond of the trustee as herein provided the court shall do so.

The creditors' first meeting must be held not less than ten nor more than thirty days after the adjudication.

d. The court shall require evidence as to the actual value of the property of sureties.

e. There shall be at least two sureties upon each bond. f. The actual value of the property of the sureties, over and above their liabilities and exemptions, on each bond shall equal at least the amount of such bond.

g. Corporations organized for the purpose of becoming sureties upon bonds, or authorized by law to do so, may be accepted as sureties upon the bonds of referees and trustees whenever the courts are satisfied that the rights of all parties in interest will be thereby amply protected.

Corporations may become sureties on the bonds of referees and trustees by virtue of this specific provision of the law (sec. 50, g), but the statute is silent as to this right with reference to the other bonds required. There is considerable doubt, however, whether congress, by specifically mentioning these two instances in which corporations might become sureties, intended to exclude them in all other cases when required. On the bond required under section 3, e, there must be "at least two good and sufficient sureties who shall reside within the jurisdiction of the court, to be approved by the court," while under section 69 the bond must have "such sureties as the judge shall approve." In the first instance bonding corporations would probably be excluded from becoming surety, while in the latter instance it would seem to be discretionary with the court.

h. Bonds of referees, trustees, and designated depositories shall be filed of record in the office of the clerk of the court and may be sued upon in the name of the United States for the use of any person injured by a breach of their conditions.

i. Trustees shall not be liable, personally or on their bonds, to the United States, for any penalties or forfeitures incurred by the bankrupts under this Act, of whose estates they are respectively trustees.

j. Joint trustees may give joint or several bonds.

k. If any referee or trustee shall fail to give bond, as herein provided and within the time limited, he shall be deemed to have declined his appointment, and such failure shall create a vacancy in his office.

[Act of 1867. SEC. 13. . If the assignee fails to give the bond within such time as the judge orders, not exceeding ten days after notice to him of such order, the judge shall remove him and appoint another in his place.]

The bond of the referee must be given before he assumes the duties of the office and within such time as the district court shall prescribe (sec. 50, a), while a trustee must give it before entering upon the performance of his duties and within ten day after his appointment. (Sec. 50, b.)

7. Suits upon referees' bonds shall not be brought subsequent to two years after the alleged breach of the bond. m. Suits upon trustees' bonds shall not be brought subsequent to two years after the estate has been closed.

Sec. 51. Duties of clerks.-a. Clerks shall respectively (1) account for, as for other fees received by them, the clerk's fee paid in each case and such other fees as may be received for certified copies of records which may be prepared for persons other than officers; (2) collect the fees of the clerk, referee, and trustee in each case instituted before filing the petition, except the petition of a proposed voluntary bankrupt which is accompanied by an affidavit stating that the petitioner is without, and can not obtain, the money with which to pay such fees; (3) deliver to the referees upon application all papers which may be referred to them, or, if the offices of such referees are not in the same cities or towns as the offices of such clerks, transmit such papers by mail, and in like manner return papers which were received from such referees after they have been used; (4) and