In re Accounts of the Shipping Commissioner of the Port of New York

20 F. 211, 1884 U.S. App. LEXIS 2186

This text of 20 F. 211 (In re Accounts of the Shipping Commissioner of the Port of New York) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Southern New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In re Accounts of the Shipping Commissioner of the Port of New York, 20 F. 211, 1884 U.S. App. LEXIS 2186 (circtsdny 1884).

Opinion

Wallace, J.

The immediate question presented by the report of the master, and the motion made on behalf of the shipping commis[212]*212sioner to confirm the report, is whether the salaries paid by the shipping commissioner to his deputies for the year 1882 were reasonable. Having filed his account of the receipts and expenses of his office for the year 1882, an order was made, pursuant to the established mode of procedure since the year 1876, by which the account was referred to a master for an examination, and report to the court, upon notice to the United States attorney. Pursuant to that order Mr. Gutman, the master, in February, 1883, filed his report, showing that the receipts, of the office for the year 1882 were $22,531.50, and the expenses for the year were $22,531.50. Among the items of expenses in that account were three of $3,648 each, paid by the shipping commissioner to his thrfee sons for their salaries as deputy shipping commissioners. Upon the motion to confirm that report objection was made by the United States attorney that the salaries paid by the .shipping commissioner to his deputies were excessive. Thereupon, and on the second day of October, 1883, this court made an order referring back the report to the master, and directing him to take such proof as might be produced by the shipping commissioner and by the United States attorney, and report explicitly upon the reasonableness of these salaries. Although since 1875 the accounts of the shipping commissioner have been returned annually, have been passed by a master, and on several occasions have been objected to by the United .States attorney, and considered upon such objections by my predecessors in office, this is the first instance in which those accounts have been challenged by opposing proofs on the part of the United States attorney. There is no statute which makes it the duty of the district attorney to scrutinize or challenge these accounts, and it is doubtful if he has any authority in the premises, except such as is .conferred upon him permissively by the order of the court; and for this reason probably the predecessors of the present United States attorney deemed it beyond their province to controvert the correctness of the accounts, beyond criticising items which seemed objectionable upon their face. The last occasion when the accounts were specially investigated was in 1878, when objections were filed by the United States attorney to the accounts for the year 1877. It then appeared that the commissioner had paid to each of his three sons, for their services as deputies during that year, a salary at the rate of $3,800 per annum, two of them being paid for the whole year, and one of them for six months. Judge Blatcheord, in considering the objections and passing upon the account, examined with particularity the financial history of the office from its inception, and considered the principles and items of the accounts, and referring to the question of salaries paid by the commissioner to his sons, used the following language in his opinion:

“As to the allegation that, on ths deposition of the shipping commissioner, the master should have reported that the salaries, at the rate of $3,800 a year, paid to the three deputy commissioners, F. C. Duncan, G. F. Duncan, and [213]*213C. D. Duncan, were entirely too largo for tlie work performed by them, there is nothing to show that any such point was taken by the district attorney before tlie master. Hor was any evidence introduced before the master by tho district attorney to show that the salaries of tlie deputies were too large for the work performed by them. Ho witness expresses an opinion to that effect, nor was the shipping commissioner asked whether he could not have obtained competent persons to discharge the duties so performed for a less compensation, nor was any evidence given that he could. The arrangement made is testified to have had the sanction of each of my predecessors, Judges Wood-ruff and Johnson'. The three deputies named were deputies from the beginning. The arrangement was one which sanctioned a salary of @4,000 to each of them, if the fees of the office would pay it. It has never exceeded that sum. Tlie commissioner and the deputies had a right to rely on the arrangement, until it should be shown, on notice and hearing, that tho salaries ought to be reduced. These observations cover tho above-named accounts. Ido not intend to say, however, that tho salaries of tho deputies and of the suboi dimites ought not to bo reduced and their number fixed for tlie future, uor do I intend to say that they ought. ”

As the objections to tlie account are now presented, I am relieved from any embarrassment arising from the decisions of my predecessors, inasmuch as they were called upon to consider such objections when there was no evidence to controvert the case made by the commissioner himself, and, practically, only his side oí the controversy was exhibited. These decisions, while authoritative and perhaps conclusive as an auditing of past accounts, do not stand in the way of considering de novo tho question of the reasonableness of tlie salaries paid in 1882, unless, as stated in the opinion of Judge Blatcit-foed, “the commissioner and the deputies had a right to rely on tho arrangement (in the past) until it should be shown, on notice and hearing, that the salaries ought to be reduced.”

The proofs taken before the master are voluminous, and embrace a wide range of investigation, notwithstanding the strenuous efforts on the part of tho commissioner to narrow the field of investigation. It was quite impossible, however, to confine the proofs to the value of the deputies’ services in 1882. Whether it was necessary that these deputies should be employed for that year, and what was a fair compensation for their services then, wore questions which could not well be resolved without a comparison of tlie business and duties of the office in previous years, and the relative value of the services then and now. This led to an inquiry into the nature and extent of their services in the past, and finally to an extended examination into tlie business of the office generally, and into the duties of the commissioner, and of the deputies, and the various subordinates, during the whole period of its existence. This examination has been sufficiently comprehensive and thorough to possess the court, not only of the material facts respecting tlie primary subject, but also concerning tlie past administration of the office, which it is very much to be regretted were not brought to the attention of my predecessors. It will not be profitable to attempt a recapitulation of the evidence. [214]*214It is due to tbe shipping commissioner, however, to state that witnesses of high respectability and intelligence have commended his administration of the office generally, and approved as reasonable the salaries which he has paid his sons.

The reasons why I cannot concur in their opinion, and must disapprove the findings of the master, may be briefly stated, and rest upon a few salient but controlling considerations. The duties of the shipping commissioner are not intricate or arduous, but they are useful and various, and require good judgment and executive capacity. He is the responsible head of the office, and is charged with the supervision of its manifold operations, and incurs some financial risks because he is obliged to pay the expenses of maintaining the office and of conducting its business, including rent and the pay of employes, out of the receipts of the office. He must rely exclusively upon the fees of the office to meet the expenses, as well as his own salary.

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20 F. 211, 1884 U.S. App. LEXIS 2186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-accounts-of-the-shipping-commissioner-of-the-port-of-new-york-circtsdny-1884.