Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-09-30
Profitable Operation Of
Plant Cost Over
$4,000.
CREDITORS QUESTIONS
REMAIN UNANSWERED
Accountant Fails TO Show
One Cent OF Receipts
in Eight Months.

Astounding revelations concerning the
component parts of the elusive AMI un-
I'll recently unolassified $4,000 OF the
assets of the American Vacuum Cleaner
Company are contained in the report
OF the expert accountant who has been
on the trail of the big sum for the past
two weeks.
Referee in Bankruptcy Edwin 6.
Adams, after Withholding Accountant
CoWans report for thirty-six hours for
private examina N, filed it today.
The report was partially prepared in
the o1sce or Senator Osborne, attorney
Tor the trustee in the case.
The accountant had found that the
entire $57.000-more than half of the
$4,000 realized from the sale of the as
sets OF the defunct company-migh be
classified as Disbursements" The
most amazing feature of these dis
pursements and the largest single item
In the list of enormous expenditures
IS SS4,Soo,S6 for operating expenses of
the plant for eight months Referee
Adams, in allowing Trustee Johnston
cornish Sl,2OO for running the plant in
adoltlon to the trustees legal fee, de-
ciared the plant had apparently been
NNN u NOiloldtldDlt profit.
"h the plant was run at profit
referee Adams was asked today by
representative OF the STAR, chow could
SS4'8s6.36 be taken out In "A Iump smm
without any return to indicate the
amount realized from running the
plant, including the possible pronts-
Why don't You put an accountant
on it?' the referee replied drvlv, nor
would he make any attempt TO answer
the question which is now more baf-
fling than was TINT of the disposition
of the $4,000.
The STAR today engaged the r
Constam Audit Company to make an
examination of the report of Trustee
Cornish
A general summary of the disposition
of the 100000 after it had been through
the economical administration mill
and the 'perlshable assets" had been
looked after with the usual zeal dis
played by the Bankruptcy experts"
shows that in addition to the fortune
spent for operating expenses. that
S6'S1O.TS was spent for patent litigation:
S9,26O2S FOR administration expenses"
So,fSO02 for preferred claims. and $1S-
296.04 for the IA per cent dividend to
creditors all they have received since
the cleaner company was declared
bankrupt. There remained to the truss
tee after this economical administra-
tom S33,OO9.52, of which sum he and
his attorney, senator Osborne, asked
$4,000 in fees. 1t will be remembered
that they received but little more than
$1,000, as the STAR had aroused the
greatest interest In the case
IL is worthy of note here that the
item illegal expenses" which is included
under administration expenses. In
eluded I'm turn $1,000 paid to senator
Cornish receiver OF the bankrupt
plant and $500 paid to senator os-
borne as attorney for the receiver
Referee Adams's expenses which occur
In this classification are $1,3IO.7O.
Another feature of the Economical
administration of the estate of the
cleaner plant by Senator Osborne
and his colleagues is a striking one.
Appraisers who were paid $3.50 each for
their services appraised the assets of
the plant at S230,959.22. But SIO7, 900
was realized from the sale of the prop
erfy. The economical administratfon"
included the sale of the machinery and
some plots of real estate TO Abraham r.
Morris for S3SOOO, sIr. Morris has
since made n neat little profit ON his In
vestment by selling that portion of the
vacuum Cleaner Company's estate he
purchased for more than 100000 MIR.
Morris admits he secured this bargain.
Perhaps in a way, there is no more
significant feature of Accountant
Cowan's report than the revelation that
Henry Decker himself a creditor of
the cleaner company, who was paid
S4. 900 while acting as assistant to Trus-
tee Cornish in running the plant was
also paid $l,946.45 for advertising which
the trustee gave out in connection with
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