Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-09-11
LAWYERS STIRRED
BY REVELATIONS
IN BANKRUP FEES
Creditors Protest in Vacuum
Cleaner Company Case
Causes Talk.
$4,000 TRUSTEE AND
LAWYERS CLAIM EXCESSIVE
Attorney Benjamin Declares
$1,000 Would Be Nearer
Correct Amount.

The protest made by the attorneys
for the creditors of the American
Vacuum Cleaner Company against al
lowing fees aggregating $4,000 to Sen
ator Johnston Cornish, trustee. and his
attorney, Senator Harry V. Osborne,
caused much criticism among the local
lawyers today. Frank BENJAMIN, coun-
sci for some of the largest creditors
of the bankrupt concern, today de-
nounced the administration of the
bankrupt estate in terse terms.
THE spirit of the bankruptcy law
was violated without a doubt in this
case" said Mr.. Benjamin. with the
allowance of $4,000 to Henry Decker
as manager of the business after the
receiver had been appointed he con-
tinued, the sum asked for amounts to
$40, 500. The statutory allowance in this
case should be about $1,000 Consider
ing the matter in the most liberal
terms, the allowances asked for are
ludicrous."
1t was pointed out that In round fig
ures the total amount realized in the
bankruptcy was approximately sl05,OOo
When the receiver, Senator Cornish,
was appointed, the cash on hand was
| 50, 900. The amount realized on out
standing book accounts was $4,000, and
the sale of the business brought $4,000,
making total of $4,000, which the
creditors assert should have been real
lied without any additional help by the
| trustee. In a recent hearing before
Referee Edwin G.. Adams, of the Es-
sex County Bankruptcy Court, Attor-
ney Benjamin asked Senator Cornish
if the collecting of assets entailed any
legal entanglements other than the
litigation concerning the patents in
volved. The trustee declared there was
not.
Patent Suit Settled Willingly.
| Mr.. BENJAMIN contends that the suits
regarding the patents had been man
aged by a New York attorney, and
that the latter had been paid willingly.
but the allowances asked for by the
trustee and his counsel on the strength
of their work in the patent contro-
versies should not be granted.
the trustee, declared Mr.. Benjamin
was very unjust to the creditors, to
say the least. The disallowing of our
$4,000 worth of claims so that the re-
naming creditors with claims of about
100000 had the complete control of the
election was unreasonable. The pre-
ferred creditors waived their rights to
preference and assumed control, al
though our claims were admitted with
out objection after Cornish was elected.
"Now, why should these creditors
| sign over their claims emitting them
to one hundred cents on the dollar
when they could not possibly benefit
their own situation by becoming
eligible to vote? The ultimate purpose
was to elect Senator Cornish trustee,
and they succeeded in doing 1t. Senator
Osborne was subsequently selected as
! trustees counsel.
Adams Refuses to Talk.
1t is maintained by the creditors that
If the allowances asked for by the
trustee his attorney, and Henry
Decker, as manager are granted, they
will receive about $4,000, which, in ad-
dition to the $4,000 given them at q
former disbursement, will bring their
share u pto $4,000. Both Senator Os-
borne and Henry Decker have pre-
sented bills for work which was en-
tirely within the jurisdiction of the
trustee, say the creditors, and assert
they will strenuously object to getting
but $4,000 out of an estate worth ap-
proximately $105,000.
Referee Edwin G. Adams was seen in
his office in the Essex building but
refused to discuss any phase of the
matter which was presented 10 him. II
will render an opinion IN the matter on
Thursday" was all he would cay.