Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-09-16
His Election Forced by
Lawyers Representing
$9l6 Creditors.
CLAIMS ,OF MAJORITY
CUT DOWN'IN COURT
BayOune Man, First Choice, De-
feated by Votes of Three
Attorneys.

30 rmch punaicfty has been given the
sSfaafsoofstne bankrupt American Vacu-
nm Cleaner Company; so much interest
in csees. OF Saaiss Kind has been aroused
by the xrchests OF the majority of cred
itors OF the cleaner company, who de-
cfared they were victims of the syn
dicated" election of trustee: the ex-
orffuant fees asked by the trustee. Sen
ator Johnston Cornish, and his attor-
ney, Harry ". Osborne, and the subse-
uuent slash9ng of these fees by Referee
that attorneys are beginning to draw
paratIslp between this and other cases
which haye come recently to the Bank
ruptcy Cours for adjudication.
Among these cases was that of Au-
gust X. Stiger & Co., button manufac-
turers, OF 81 Nassau street, Newark
This firm was thrown into bankruptcy
June 8 last on petition of three of the
largest creditors. They asked that
Georges r. Cooper, of Bayonne. be ap-
pointed receiver and Judge Cross at
Trenton authorized Cooper to take over
the management of the concern. His
administration. of the affairs of the
bankrupt was thoroughly satisfactor.
70 tho larger creditors, one OF whom
was the National butchers and Drov-
ers' Bank, of New York, with a claim
of $4,000. and he was their logical
choice for trustee.
Cooper Not Made Trustee.
Mr.. Cooper was not elected trustee.
Senator Harry v. Osborne was elected
trustee by twelve creditors, whose
claims aggregated s916.26. The remain
ing creditors, most of whom wanted
Mr. Cooper as trustee, had claims ag-
gregating $4,000. they say, but were
reduced on technicalities to $190.S7.
The small minority of claimants who
elected Senator Osborne trustee were
represented by David H. Bilder; his
brother, Nathan Bilder, who later was
selected as a trustee; Osborne's coun-
sci, Leonard A. Duncan, formerly Of
Senator Osborne's Office, and David
Bobker, an associate of Senator Os-
borne.
Representatives Of the creditors hav-
ing the bulk of the claims-the credit
ors who had caused a receiver to be
OBSERVATION-DISCLOSURES they sought in every
way TO secure some voice for their
clients. Attorney Arthur B. La Far, of
New York, representing q number Of
claims, asked the referee for an ad-
journment to enable the creditors to
amend their claims so that they might
become eligible to vote.
Referee Adams denied this request
on the ground that it would not be
fair to the creditors whose claims were
properly filed and who had spent the
morning at the session. 1t is said by
attorneys present at the hearing tina.
these same creditors who the referee
said had been waiting all morning rep
resented but 2 per cent. of the claims
They we're represented by Bilder &
Bilder, Mr.. Duncan, formerly of Sem
ator Osborne's office, and Mr.. Booker
an associate of Senator Osborne.
After more claims had been thrown
out on objections by Nathan Bilder,
Mr.. ha Far again asked for an ad-
journment. His motion was again
denied. Senator Osborne was elected
trustee.
Attorneys Fees stopped Fight.
But IOr tue IbCl lHdl tHoy pciioNOu
the attorneys fees in the case would
be too great the creditors whose claims
were thrown out say they would have
continued a movement they started to
have the referees ruling reviewed by
the United States District Court at
Trenton.
Referee Edwin G. Adams has con-
sistently refused to talk for publica-
ton since the troubled affairs of the
cleaner company have been under dis
cussion, but he consented to break his
rule when asked as to the refusal to
adjourn to enable creditors to amend
their claims.
IF have committed any error in the
rule which l have invariably followed
of denying an adjournment of the cleo
ton of trustee because the claims of
some of the creditors have been dis
allowed, such error could have been
speedily corrected by review of my
action, which could be had before the
Judges at Trenton at the instance of
any creditor without any. costs of
court"
Bitter complaints of the denials made
to their motions for adjournment have
been made by many lawyers who
handle bankruptcy cases.