Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-09-12
No Further Move in
Bankruptcy Case Un-
til Ruling.
SENATOR OSBORNE GIVES
OUT FORMAL STATEMENT
Claims Made by film and Cor
nish Last Straw
Say Creditors.

Representatives OF creditors OF rne
defunct American Vacuum Cleaner
Company, who declare they were
wrongfully deprived of partici-
patton in the election of trustee
because they say Senator Cornish, who
was chosen trustee; Senator Osborne.
his attorney, and Henry Decker, one OF
the large stockholders, ''sy" "dicated"
the election, will make no further move
In the matter until Referee Edwin O.
Adams renders his opinion Thursday
concerning the claims of the two sena-
tors. which are declared to be exor-
bitant.
These claims, which aggregate $l5,-
900, amount to almost half of the sum
remaining after expenses were paid
and the creditors had received IA per
cent. of the total amount they ask.
OF the money realized from the ad-
ministration of the affairs of the bank
rupt company there remains but $685.
900. Senators Osborne and Cornish are
seeing the storm of protest aroused
among those creditors who say they
were Disseminated against grow from
day to day Their valuation of their
services at $500 each was the last
straw, according to the indignant
creditors.
"I do not care to make further COM
ment on the case until the referee mas
passed upon these claims" said Frank
Benjamin, who represents many Of the
creditors whose claims are said to have
been thrown out on the flimstest pre-
lenses.
II have not receded, however, in the
slightest degree from the position [
took in the meeting for the election
of trustees, nor would I amend in the
slightest particular the statements I
made concerning the absurdity of these
claims"
Sineularly enough in presenting his
side of the case through signed
statement to the STAR, Senator Os-
borne attacked some of those charges
which Mr.. Benjamin had, earlier in the
day, declared he would stick to until
the complicated case was cleared up.
Senator Osbornes letter and the state
ment which accompanied it follow:
To the Editor of the Star:
/ beg leave to hand you herewith
statement in relation to my connection
with the American Vacuum Cleaner
Company. case; | have prepare prepared hin, thus
have prominently. appeared IN your pa
per- and which give an entirely erron-
eous impression of my connection with
If YOU will be good enough to pub
Iish the same under the circumstances,
I Will be Obliged: Yours very truly,
The statement is as follows:
have read the recent press articles,
including what purports to be an In
terview with one Of the attorneys con-
cerned, in the matter of the administra-
tion of the bankrupt American Vacuum
Cleaner Company. / could find no
the whole truth, but either intention
ally or otherwise, they do not and are
therefore manifestly unfair.
About the time / announced my can
didacy for reelection / was informed
that an attack of this nature would be
made upon me. Whether this matter
has any relation to that information or
If l were not a candidate for public
office l would not take the trouble to
make this statement, but | presume
that, to a large extent, every public
mans private life and private business
are of public interest.
have made something of a speciality
of bankruptcy practise, by reason of
which fact and as the representative of
the bureau of adjustment of the New
ark Association of Credit Men, l have
been interested in one capacity or an
other In a great many bankruptcy pro-
ceedings.
| had absolutely nothing to do with
the appointment of Senator Cornish as
receiver in the Vacuum Cleaner case,
nor was ! interested in the case in any
way at that time. Senator Cornish
was appointed by Judge Rellstab at
Trenton The receiver ordinarily is
merely a custodian pending the election
of the trustee by the creditors. Shortly
before the first meeting of creditors
of state, who, with w. Holt Apgar, rep
resented Senator Cornish as receiver,
came to my Office and asked me to come
into the case. There had been consid-
cradle friction between various groups
of creditors. one coterie of creditors
who had been trying TO get control OF
the company, endeavoring to bring
about the election of a New York law
Yer as trustee. The trustee is elected
by majority in number and amount
Of the creditors whose claims must be
prepared in accordance with the speci-
fed provisions of the Federal bank
ruptcy act.
At the first meeting of creditors a con-
test arose between various groups of
q editors who We're desirous of debating
The election of Il trustee. | was not pres
ent at the meaing, being confined to my
bed by Illness at the time, but Mr.. Duncan
and Mr.. Bo,ker, attorneys of my office
representing creditors, were and l am in
formed that number of claims were dis
allowed, not. rs Mr. Benjamin is quoted
as stating in a recent interview, because
of bookkeeping Mistakes but because
they had nok been prepared in accordance
with the proU Usions of the bankruptcy law3
and were, therefore, properly objection
able, with the result that Senator Cor
nish was elected by the creditors, whose
claims had been prepared according to
tam The DractiSe of ObieCtinR to claims