The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-10-05
REFEREE APPOINTS
B|LOER TRUSTEE OF
K0RNIT COMPAN
Claims of 1000 Noteholders
Disall0wed Because of Error
in Presentation.
ELLIS'S LAWYER PROMISES
HE WILL RETURN SOON
Creditors Owning Notes Can
Only Hope to Realize 10 Per
Cent. of Money.

A dozen lawyers and a fair sprinkling
of creditors without legal advisors ap-
peared today in the Essex County
Bankruptcy Court at the first meeting
of creditors of the bankrupt Kornit
Manufacturing Company. The main
ment Of a trustee. When no selection
was made by vote, neither candidates
receiving a majority, Referee Sdwln
G. Adams appointed Nathan Bilder, CT
the law firm of Bilder & Bllder, trustee.
The better part of the two or more
hours devoted to the business was
taken up by hearing objections to va
rious claims. Some 300 claims, repre-
senting in the aggregate 1896, held by
1000 note holders, were disalowed on
the ground that they were not prop
erly made out The objection was
raised by Mr.. Bilder, who, among other
things, urged that the phrase used in
the claims, "inoney paid was not def
mite enough, and that space, appar-
entity left open for specifying for just
what consideration the note was given
and which. in practically all of the
blank, should have been filled in. This,
ing powers. These claims, however,
stand an equal chance of being paid.
On paper the Kornit Company has a
safe margin of $7,59692 in assets over
liabilities. One of the major items in
the statement of assets, however, Is
the machinery, which is put down for
20,066.10 Some of the creditors say II
will not bring any such priceNas it was
built for special work. The matter is
yet to be determined.
In the vote for trustee, Nathan
Bilder, who was nominated by David
BoblSer received all votes. totaling $7,-
234.s5, but that. of Charles e. Ellis,
president OF the sempany, who has
filed claim as eacreditor on the
grounds that he had loaned the COM
pany s15, ,44s.47. This amount was voted
for Charles Burroughs. Mr.. Burroughs
was nominated by l, c. Dobbins, repre-
senting petitioning creditors.
The matter was adjourned until DC.
tober 21, at 10 o'elocn In the morning.
A few of the smaller creditors, whC
appeared without counsel, caused com
motion by their attempts to file claims
without filing out the proper forms
They were told to get blanks and send
in, their claims by mail
An element of mystery is added tc
the case by the lack of knowledge or
tine part of all concerned about the
president of the company, Charles e
Ellis His counsel, W. Bernard Vause
said he is in New York, but that will
appear shortly.
The statement of the Kornit Com
pany's liabilities and assets is:
Assets-Real estate, $29,104. "a; stock
$4,000; household goods, ETC., $445.90;
machinery, $20,06610; debts, etc.
S1,190S9 Total, $52,S0723.
Labfities-Secured claims. $3,675;
unsecured $40 S23.75; other debts, s711,56
Total, s45,220.S1.
All that any of the creditors who
base claims on noise can secure will
be 10 per cent. The notes were in the
nature of a levy on the stockholders,
and We're sent out some time after the
stock had been bought. They called
for 10 per cent. of the original in
vestment.