Evening journal., 1912-11-22

] court Wulcn dulhOIlHcu pllNdleS safes
was not obtained until February 4.
1905. the receiver commenced immedi-
ately after their appointment to dis
pose OF the assets by private sale aud
10 use the funds OF the estate in pur-
chasing manufactured material from
third persons.
lt is the opinion Of the master That
most Of the agents grouped in The fifth
class were idle and unemployed dur
ing most Of the time they were paid.
The Second Period.
Tho second period Is next taken
up aud. considered II covers the
TO years from about the time when
the inventory had been taken until
March tl907. and the receivers are
criticised for the number Of agents
employed during that time. The re-
port adds
That IL appears from the evidence
that a substantial part OF the time of
w. VI. Wallace, Il. W. Todd, Herring,
Walker and probably one or more
clerks or stenographers was de-
voted to labor incident to negotia-
tions and efforts that we're made by
and under the direction Of Receiver
Wallace TO obtain purchasers for the
plant and other matters relating
thereto that these negotiations and
efforts were conducted withou. au-
thority from the court and without
knowledge and cooperation Of the
creditors and bondholders.
The third period Is from March l..
1907. to August I. 1910, and the re-
port sets forth that notwithstanding
the fact that all of the property OF
the estate had been sold for upwards
lof two months before the receivers
paid these agents about l1.60l 20 i'm
wages and salaries during The three
years and FIVE months included there
in.
The fact that a Philadelphia Office
was maintained Is also criticised, and
with respect 10 William II Wallace,
who was in charge, the master con-
tends that he has not been able to find
substantial reasons TO show why he
could not have served the estate with
equal or better advantage without the
use OF such office. He adds that the
fact that the receivership business
could have been more economically
and efficiently performed without the
Philadelphia Office seems 70 be plain
from the evidence to require consid-
GRAFTON OF the technical objection
urged by the exceptants 10 the effect
that such expense "were incurred be-
yond the jurisdiction OF the court
With respect to the exception OF
the creditors concerning telephone
charges is is stated that the receivers
maintained seven separate telephones
during periods of varying length
when the business OF the receivership
did not, In the judgment of the master,
warrant them in maintaing so large
a number The report shows the sum
of S3S1.05 was expended for the rental
Office. and although that Office was dis
iconinued on February / 1907, the re-
ceivers continued to pay rentals for
the month of March, 1907. and for the
other during the months OF March and
the use of one of these phones during
April. 1907. The finding OF the master
is that "the telephones therein were
not necessary, and that all the rentals
, thereof. aggregating S3S1.05, were un.
, necessary, improper and unreasonabl,
! expenditures.
Travelling Expenses.
With respect TO the fourth exception
Of the creditors 60 the allowance oI
creditors claims by the receivers for
payments made to Howard 7. Wal
lace. one of the receivers. aggregatinp
S4,399.O5. which included bills for
travelling expenses. the master holds
that the full amount should not be al
lowed. He continues: "That the
standards In tho mind of Wallace
, which led him to incur many Of these
travelling expenses were not those ol
! the ordinary business man administer
! ing trust funds. nor such as would be
! approved by courts of equity"
The fifth exception Of the creditors
, presents their objection 20 the approx
J al OF allowance OF credits claimed by
the receivers for payments made tc
: Frank W. Todd. one OF the employees
The report shows that the payments
( Ito Todd aggregate Sl.050.55 and moi
s6O115 as set forth in this exception
, The report further sets forth tha
Todd was examined on this subject
and that part of his testimony is {,
the effect that the items of his ex
I. lpenses we're made up Of car fare am,
! lunches in this city either for himsel
. or others that he might have with hin
in the interest of the plant. With re
spect to further testimony, the re
a !
y derstood that he mostly had to esti
!. mate what was included in th'
> amounts shown by his receipts be
. cause he simply made from memoir
anda'
: The report continues: THAT it ap
: pears from a calculation made from
= the estimates given by Todd in hil
= testimony that he has distributed The
= $500 65 which he received as follows
+ 1S7 trips TO Philadelphia. S34SO4:
trips to New York. S65.50 6 trips {,
e Chester, $3.50: ! trip TO Baltimore
e So; lunches in Wilmington. S11450
Z street car fare In Wilmington. S54
o notary fees. S2.75; and cash for tn
II amount OF S25 that did not involve al
expenditure by Todd. but which H.
G obtained for II. Il Wallace. rcceiptiul
81 for it and turning the money over 4
y Wallace.
AZ The sixth exception OF the crcdi
Is tors is with respect to the alloWanc
e. of credits claimed by the receiver
'r for payments made 10 William r. Wal
le lace. an employe. aggregating sl.212
III so, covering bills for travelling on
'e penses.
The other exceptions of the cred
Is tors relate to the amounts eNpendo
ID for stationary stamps. etc.
OF One particular exception relates
be the expenditure of 81 .433 As by the r,
OF ceivers for coal Tho report hold
ce the total OF SS57S7 represents IN
ed cost of all the coal and freight IN;
was necessary.
Id The report continues. "That th