Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-10-02
CREDIT MEN WILL
PROBE PRACT|SES
OF OSBORNE Eft AL.
Stirred by STARS Bankruptcy
Investigation, Association
to Hold Meeting.
EQUITABLE DISTRIBUTION
OF ASSETS Is SOUGHT
Rigid Probe May Result in an
Amendment to Present
Federal Laws.

Stirred to action by the STARS re-
cital of local bankruptcy conditions
members of the Newark Association OF
Credit Men, in their meeting tonight,
Vii attempt to formulate a plan to
remedy them.
1t is hoped by Curtis r. Burnett,
president of the association, and his
colleagues, vino have been following
the investigation made by the STAR,
that the ultimate result of their efforts
will be to nullify the present influence
in bankruptcy matters of the Bank
ruptcy Syndicate and to make possi-
BILE an equitable distribution of the as
sets OF bankrupts among their credi-
tors.
Th credit mems proposed campaign
calls for a rigid investigation of the
methods of settling bankruptcy cases
now in vogue. An effort VIII he made
also to arouse public sentiment toward
the amending Of the present Federal
bankruptcy LAWS.
The committee in charge of the adj
Enlistment bureau, Of which Harry v.
aFDsborne is manager. has been invited
to appear before the trustees at the
meeting tonight. Senator Osborne is
not a member of the committee and
will not be present.
Attorneys fling petitions in bank
ruptcy have complained frequently that
their clients received circular letters
asking them to cooperate with other
creditors in an economical administra-
ton of the estate" These petitions
when signed by Senator Os-
borne rather than other members OF
the so-oalled Bankruptcy Syndicate
were invariably upon letter-head1 OF
the adjustment bureau Of the Credit
Mems Association.
1T is believed from what has already
been said that such methods will be
repudiated at the meeting of The credit
men tonight, and that further clrel-
l~arizing of the creditors of a newly
made bankrupt. under cover of the adj
justment bureau. win he made impos-
sible.
Further evidence Of the excessive
cost Of the economical administra-
tor of estates is contained In the case
of r. 5. CoX's Sons, bankrupts. Prac-
tically only a beginning has been made
in this case, as ii is barely through the
refereeship stage; but hat beginning
tells the OLD and by this time familiar
story of cost of administration eat
ing up assets at the expense OF
creditors,
j. Tracy Horton. trustee in a large
number of cases during the past two
years, is the receiver for II. S. Cox &
Sons. As is his custom, Mr.. Horton
selected Bilder & Bilder for his counsel.
The receivers first account. filed
August s last, shows that he realized
ss3T.01. OF this sum he has discussed
s4OS. 26. Bilder & Bilder received 1929
OF this amount in the following allow
ances: For preparing schedules $40;
services to petitioning creditors, S2o;
disbursements, $41.50: for attorneys or
The receiver, $65, and disbursements,
$3.50. Total, 1929.
j. Track Horton. as receiver, Is al
lowed S5t.32; Referee Edwin q. Adams,
for testimony. $25.50; the following APP
praisers appointed by the referee re-
ceived $40 each: Philip d. Elliot, BROTH
er-in-law of Referee Adams; Frank
Virtue and Samuel Welte; the auc-
pioneering firm of w. j. & A. G, Gle
men, which appears in many reports
of sales, received $50, These allow
ances and other expenses brought the
receivers disbursements to $40S.26.
The creditors are informed that the
total amount collected by the receiver,
minus the disbursements, leaves $42S.16
for the payment of priority claims and
a first dividend of 5 per cent. This
means $139.97 is to be distributed among
creditors with claims of ~, 1885,.
Despite the fact that the STAR has
made every effort to find out how the
receipts OF the American Vacuum
Cleaner Company are accounted for
and why Referee Edwin G. Adams de-
elared that the trustees expenses for
operating the plant, which amounted
to S34, 1886. Sc, were not in vain, for the
plant was run apparently at a con-
siderable profit these efforts have as
yet been fruitless.
Senator Osborne, attorney for the
trustee, was visited by a reporter and
asked to show where the receipts, to
prove that the plant was run at a
profit. have been placed.
Before the senator consented to talk
he asked his stenographer to take
notes. declaring that he did not wish to
he misauoted. Mr.. OSBORNE also told
the reporter that the newspapers have
been unfair to him, and when he nm
ished his statement said that this
newspaper would not print what he
had said. The following is a stenog-
raphic report of Mr.. Osborne's words:
f'You gentlemen. either %purposely or
otherwise, seem to assume the position
that ! am responsible for the business
administration of the American
Vacuum Cleaner Company, when, as a
matter of fact, such is not the case. l
had nothing to do with the business
administration of the company what
ever. I was retained solely in a legal
capacity, TO perform strictly legal
services. know nothing about the
account of the company or where the
money went, except as ! have most
casually examined the report OF the