Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-09-30
Credit Mems Head viii
Fight "UnethlCal
PraCtiSeS."
WILL PRESENT MATTER
FORMALLY TO TRUSTEES
Osborne, Manager Of Ad-
juStmeDt Bureau, Asked
TO Attend Meeting.


Credit Men will take up the investiga-
tion of the local bankruptcy situation
against which the STAR has been wag-
ing war, was announced today by Cur
tis r. Burnett, president of the asso-
citation. The matter will come up at
the meeting of the trustees Monday
night The Adjustment Bureau Com
mittee has been invited tc meet with
the trustees
Harry V. Osborne is manager of the
adjustment bureau.
Mr.. Burnett In mn interview today de-
nanneed as unetbicaI the practises OF
the local bankruptcy expertsv and de-
clsred that he would do all In his power
TO fight for more equitable adjustment
of claims and n reduction of lawyers
fees.
Admits Need of Changes.
Although he admitted that one or
two changes ought to Il made In the
Federal law, Mr. Burnett nevertheless
defended it and declared it to be a
blessing to business men.
One change he thought ought to be
made is this:
Il think the fees of lawyers who
file petitions at Trenton should be cut
to a mere nominal sum.
'sIn some cases where lawyer re-
ceIves 5000 for his work the fee ought
to be reduced 10 about $25. This would
reduce the number of eases and insure
the creditors of fairer treatment
Mr. Burnett told an Evening STAR
reported that it was through the eff
forts of the National Credit Men that
the law was amended Ia. year so that
the fees of trustees and receiver were
put on a percentage basiJ.
CIiaucs Opposed Change.
The only opposition made TO this
amendment" said Mr.. Burnett, "came
from lawyers representing cliques In
various cities. am glad to say we
won out"
In defense of the present law Mr.
Burnett said:
"The bankruptcy law is the best stat
ute for protecting the interests of all
creditors, regardless of the location Of
debtor or creditor. that has even been
enacted
True, great opposition is offered to
II and it's repeal Is urged and advo-
Gated, but there are only two sources
from whence this attack comes.
First, from those States, principally
In the South, whose State laws give
the preference and advantage to the
creditors residing within the State, and
place the creditors at a distance In
such a position that should the act
ever be repealed they would refuse to
sell or ship goods within such States,
and the result would be an enormous
curtallng of credits, with a correspond
ing inability of the consumer to secure
his wares at anything like present
prices.
This Is particularly true of food
stuffs and wearing apparel, which come
largely from the Eastern and Northern
States, who, by the way, are the ones
standing out firmly for the continuance
of the present law.
Second, to my knowledge, some of
those urging the repeal OF the law
have been. and would again be, the
worst offenders by securing the pref
erenoe and getting their money. to the
absolute loss in most instances of the
other creditors, and it is a well-known
fact in the trade that these aptly
termed pirates and freebooters care no
more for the equitable distribution of
the assets of those in business diff
culties than did the -throats of the
Spanish main or Captain Kidd of old
for the mental and physical anguish
and torture they inflicted upon their
unfortunte prey. They want their
pound of flesh and gloat over the chag-
rim of the other creditors whose rights
are equ;' but who have not acted
quickly enough"
SO much for the law-if practised
ethically II was in the administration
The act, however that Hr. Burnett
picked flaws.
Krauf Critters.