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How are judges so rich?

Many of the judges made their money in private practice before becoming judges; others inherited great wealth. Some, such as senior Circuit Judge Bailey Aldrich of Massachusetts, did both. He practiced law for 22 years and is a member of one of America's old, wealthy families.

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WASHINGTON (AP) _ For Judge Cynthia Hall, a vacation is a month in Malaysia watching birds. For Judge Richard Cudahy, investments earn enough in a year to pay the salaries of all nine Supreme Court justices - perhaps twice over. They are two of the nation’s several dozen, or more, millionaire federal judges. An Associated Press study of 935 financial disclosure reports by federal judges found at least 62 and possibly as many as 176 millionaires. Exact numbers cannot be determined, because the disclosure forms value most assets and income within wide numerical ranges rather than in exact dollar amounts.

Among the 62 certain millionaires are names familiar to many Americans:

-Lewis F. Powell, Jr., 81, retired Supreme Court justice, with investment holdings between $1.7 million and $3.2 million. Powell now sits as a senior judge on circuit courts. -Circuit Judge James L. Buckley, 66, a former New York senator and the brother of columnist-talk show host William Buckley, put his holdings between $1.4 million and $2.9 million. -Circuit Judge Clement F. Haynsworth Jr., 76, nominated unsuccessfully by Richard Nixon to the Supreme Court in 1969, had holdings between $2.8 million and $4.6 million. -District Judge Gerhard A. Gesell, 78, who presided over Oliver North’s Iran-Contra case, had holdings between $1 million and $1.3 million. Many of the judges made their money in private practice before becoming judges; others inherited great wealth. Some, such as senior Circuit Judge Bailey Aldrich of Massachusetts, did both. He practiced law for 22 years and is a member of one of America’s old, wealthy families.

Aldrich reported an investment portfolio of between $2.9 million and $5.1 million.

Aldrich, who at 82 still works full time eight months a year, believes judges need a pay raise. ″If you want to get good judges, you’ve got to pay something not too far below what the judge would earn if he was working as a lawyer,″ he said. ″One of the big problems is that judges get paid the same whether they’re in Massachusetts or Wyoming. A judge in Massachusetts is grossly underpaid; a judge in New York is more than grossly underpaid.″ Other judges were more reluctant to discuss their wealth or the 30 percent raise which the federal judges have demanded since Congress rejected a 51 percent raise for them Feb. 7. Judges’ minimum $89,500 salaries already place them in the top 1 percent of Americans. ″I never discuss the economics of being a judge,″ said Cudahy, perhaps the richest judge in America. A member of the 7th Circuit Court of Appeals in Illinois, Cudahy said, ″I just don’t think that I’m terribly representative.″ Heir to a Milwaukee meatpacking concern which he ran for 11 years, the 63- year-old Cudahy reported holdings worth at least $8.4 million and perhaps more than $16.1 million. He has large bond holdings as well as an extensive stock portfolio; he lists 12 separate assets as worth ″over $250,000.″ Cudahy’s investment income was at least $1.1 million and possibly more than $2.5 million. By comparison, the Supreme Court gets an aggregate annual salary of $995,000.

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Judge Hall of the 9th Circuit Court in California is a former Tax Court judge and is the widow of a prominent tax attorney. At 60, she reported holdings of at least $2.4 million and as much as $5.8 million. Fond of travel to Asia, she said in a 1985 interview that she had worried five years earlier when her husband died whether she could afford to educate her son and four stepchildren and stay on the bench. She sent her son to an East Coast boarding school and ″decided we could make it financially if we reduced our standard of living.″ She declined to be interviewed about the pay raise because, according to a clerk, ″she’d prefer not to discuss it with the press. She just doesn’t think it’s appropriate.″ It’s certain there are more than 62 millionaires because the disclosure forms understate wealth. The value of the judges’ homes and some other assets are not reported at all. In addition, the AP study did not count the assets and income of spouses and dependent children. The AP analyzed the forms of the 935 judges who worked at least 60 days during 1987, the most recent year with a complete set of forms. Among the potential millionaires, her wealth somewhat obscured by the reporting rules, is Supreme Court Justice Sandra Day O’Connor, 59. Her holdings were reported between $730,000 and $1.1 million. If her husband’s assets were counted, those figures would be $545,000 to $995,000 higher. Even then, any equity they have in a $660,000 suburban home remains unreported. No other active Supreme Court justice reported holdings even close to $1 million.

Among the 62 certain millionaires, the average age is 64.6 years.

All but four are men. The women, in addition to Hall, are Helen W. Nies of Washington, D.C., Karen Henderson of South Carolina and Maryanne Trump Barry of New Jersey. Barry, who estimated her holdings between $1.8 million and $2.3 million, is the sister of New York real estate magnate Donald Trump. South Carolina, with at least six and possibly seven millionaires among 13 federal judges, has by far the highest proportion. Ten states have none of the certain or likely millionaires: Idaho, Maine, Montana, Nebraska, New Hampshire, North Dakota, South Dakota, Utah, West Virginia and Wyoming.

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