Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-07-12
MAY HAVE TO PAY
BACK HIS SALARY
Master Recommends That w.
D. Osborne and His Son
Return $4,000.

If Chancellor Walker affirms the
Recommendation of Special Master
Francis Child, and there is every in
dication that he will, Walter d. Os-
borne, of Hutton Park, West Orange,
and his son, Abeel d. Osborne, Will
have to refund matter of $4,000 to
Charles S. Osborne & Co, tool manu-
| facturers, of Harrison.
w. d. Osborne is a stakeholder and
president, and his son, treasurer of
the company. and their salaries were
a matter of their own regulation. Mrs.
Emily d. Osborne, sister-in-law of
the former, and the other stakeholder,
objected to the way Mr.. Osborne took
his two sons into the business and
raised his own and their salaries, and
she brought chancery suit to have
their wages fixed and the excess re-
funded.
When salaries went up, dividends
went down, Mrs. Osborne said, and
Vice Chancellor Stevens agreed with
her when he heard the case last De-
cember. In the sixteen years that the
company was in business prior to 1906,
when Mr. Osborne is said to have
started out to raise salaries on a
wholesale scale, it paid dividends
ranging from Is to IS per cent, and
accumulated surplus of $4,000 be-
Sides. In 1907, however, the dividends
dropped to 6 per cent; in 1908, it was
s per cent, and in 1909, 1t was 10 per
cent, while the business was going
on Just as usual.
Says He Wanted to Buy Her Out.
Mrs. Osborne, who lives at 55 North
Arlington avenue, East Orange, de-
clared 1t was her brother-in-law's in
tention to buy her out and get all the
stock in his own name. He did sue
coed in getting a majority, by buying
one share from a bookkeeper of the
company, and twenty-five from her.
For the latter batch, he offered SIPS
share and finally paid 5000. This,
with the 301 shares of total issue OF
602, gave him control of the business.
Mrs. Osborne got her interest in the
business from her late husband, Jas
per Osborne, who died in 1889. After
his death his younger brother, Wal
ter D., and his widow formed a cor
poration, capitalized at 100000. with
60a shares of stock. OF this Walter
d. and his father, now deceased, got
301 shares; the estate of Jasper Os-
borne 300 shares, and a bookkeeper,
one share.
Mr.. Osborne's salary up to 1906 was
$4,000 a year. Then he raised himself
81 600 The next year he raised AbeeTs
salary to SO, 800, and in 1910 he made
it $4,000 In 1911 he raised h him
another 1000. In 1908 he took Ralph,
a younger son, into the business at
$50 a month. Two years later Ralph
was drawing $500 a year. and in
1911 he was getting $4,000 year.
Master Recommends Reduction.
Mrs. Osborne brought her suit
through Nicholas w. Bindseil and
John r. Hardin. Philemon Wood
ruff and Robert H. McCarter sup
ported Mr.. Osborne. 1t was referred
to Special Master Child, and he has
filed his report recommending that
w. D. Osborne be allowed $4,000 a
year salary, and that he be com
PEELED to return all in excess of that
since 1908, when his sons took most
of the responsibility from his Shout
ders He will have to return about
IS, 900 with interest. Mr.. Child says
SO, 500 a year is fair amount for
Abeel, so he will have to refund
SO, 500 the amount of his excess in
salary Mr.. Child does not interfere
With Ralphs salary.
The Charles S. Osborne Company
originally had it's plant in Mechanic
street, this city. 1t has since
abandoned that and now has large
plant in Jersey street, Harrison.