Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-09-14
Referee SlaSheS Bills of Osborne
and Cornish in Cleaner CO. Case

which compensation is prescribed II
the act. The Circuit Court OF Appeals
however, in the Ease of r. Schneider
q Co, 20 A. b. r.. 162, ia Fed. 1856
finally ruled that the compensation t.
a trustee for conducting the business
is in the sound discretion of the court
having regard to all the circumstances
1nasmuch as the act prescribes me
compensation for any similar serV'
ices This is the rule which has gen
orally been followed prior to thu
amendments of June p. 1910. These
latter amendments do not apply to this
case, because they affect only cases be
gun after they became a law on said
date. but it may be noted that under
these amendments compensation in adj
dition to the statutory commission
may be made to trustees, marshals and
receivers for conducting the business
which additional compensation consists
of commissions figured upon the same
basis as the commissions to a trustee
for his usual and ordinary duties.
Entitled TO Compensation.
The trustee is, therefore, entitled to
compensation for his services in con-
Quoting the business in addition to his
commissions for the performance of his
ordinary and usual duties; and. in
fact, 40 contention to the contrary has
been expressed before me. He con-
tinued the business for a period of
eight months, operating the factory in
Newark, selling vacuum cleaners in
the manner followed by the bankrupt
corporation. by means of advertising,
circularizing and by sales agencies;
collected the accounts thus created,
and, as shown by his monthly reports,
apparently realized a considerable
profit TO the estate. This entailed con-
siderable responsibility and consider
able labor. 1t is commended that the
trustee should have performed these
services which were rendered by Mr..
Decker. The employment of any as
%sistapt by the trustee is a matter of
Judgment to be exercised by him, sub
ject to the approval Of the court, after
hearing any creditors who may oppose
such employment or the amount paid
therefor. In this case my view is that
il the trustee required assistance he
did not require a $100-a-week man; and
| think that a fair disposition of the
compensation to be allowed to Decker
for his employment and to the trustee
for his services in conducting the bust
ness will be to allow Decker $50 a week
for his services and the trustee 81, 200
for his services in conducting the bust
ness, in addition to his statutory fees
of S1,211 for his ordinary duties as
trustee.
objected 10 Attorneys Claim.
AS TO the allowance to the trus-
tnafo affnrnAU tho fGIorlS of tha court
and the petition filed, show numerous
services, necessary and important to
the interest of the creditors, rendered
during a period of a year and a half.
These services are so numerous and
so fully set forth in the petition filed
as not to require particular mention
here. except to say that the involved
condition of the affairs of the bank
rupt, the numerous lien claims against
property in New Jersey and in other
States. the considerable number of
claims filed in this proceeding requir-
ing Investigation. necessitated investi-
cations. examinations of witnesses and
legal proceedings which were c%reditably
performed.
THE creditors heard at the final
meeting expressed their satisfaction
with the services performed by the
trustees attorney, but objected to the
amount asked for, M suggested that
some of the services set forth in his
petition We're duties which devolved
upon the trustee. This latter sugges-
ton is undoubtedly true. Attorneys
frequently perform such services for
the trustee, but they are not consid-
cred in the making of the allowance.
So, too, il is not i~nfrequent for attor-
neys to apply for larger allowances
than can be allowed under the policy
OF the bankruptcy act, that policy
being that the size of the estate must
be a guiding factor in making an al
lowance for services reasonably neces-
sary. 1 shall allow the trustees at
torney the sum of SO. 500 for his services.
and the sum of S83.23 cents for his dis
bursements.
Books Were Open.
Il should not have prepared this
memorandum but for the sensational
and false statements of both fact and
law which have been published in the
newspapers since the last session, pub
lications the motive for which is prob
ably understood by the newspaper
publishers better than by me. The
facts could easily have been learned
from the records of this court, but no
attempt has been made to ascertain
them. Since the election of the truss
tee down to the final meeting every
important action had in this bank
ruptcy matter has been had after a
hearing before the creditors upon no.
tice to all OF them, and has been ac-
quiesced in by the creditors attending
such hearings. This was true of the
order to continue the business with the
filing of monthly reports, the order to
continue the patent litigation, and of
every sale of assets. the creditors be-
ing heard on the applications for sale.
and having notice of the time, place
and terms of public sales and of the
time of hearing applications for con-
ffrmation.
No Dissent by Creditors.
In all these matters there has been
no dissent on the part of any creditor,
When the factory plant and contents
were sold the sale price seemed to me
so inadequate that, although the credi-
tors who appeared on the application
for confirmation recommended that the
sale be confirmed, and although all the
creditors had had notice of the time
for hearing or the question of confir-
nation, l adjourned the matter and