Norwich bulletin., 1914-08-08
MONEY TO PAY ALL JUST CLAIMS
Ih.mes Specialties Co Creditors Will Not Have Wait At tornev Tells Comt-Receiver Cronin Continued for . Month-Company's Indebtedness to June 10 Was $194, 36661-Credis of Nearly That Amount = Hear ing in Superior Court Continued a Week.

! Attorney Cronin one month MT. AL word had to his credit in New York bank sel, ,59s, which he intended de- against the company, and have the majority stockholders assume the man. agement of the company under the dt- rection of the receiver. Mir. Alvord would assure the payment of all mer- chandise claims as approved by the receiver, and every dollar of claims against the company would be taken care of. No creditor would be com pelled to wait, as there would not DC any delay in getting the necessary money. The stockholders were ready to begin immediately the payment of the claims. Attorney Geary asserted that if the s9f.598 to the credit of Mir. Alvord was not sufficient, he had at his disposal s4S.600 more which could be applied to the payment of the claims. He asserted that no creditor having an honest claim need wait five minutes after court adjourned and af- ter the receiver had passed upon them for payment. He said that the re- ceiver had about $25. 5000 in cash. there were on the books of the company in accounts receivable S7s,093, besides the money pledged by MT. Alvord to look after the floating indebtedness of the company. As far as the creditors were concerned, there would be no delay in paying them 100 cents on the ' dollar.
 New York Attorneys Suggestions. Attorney Deford of New York said that he thought the amounts given by Attorney Geary were adequate to meet all claims and he was satisfied with the statement, but he thought that the ! money which MT. Alvord claimed he had in the New York bank should be checked over to the receiver to pay the | bills, as an absolute guarantee that the [ money would be forthcoming. Attor- 1 ney Defcrd represented creditors with unsecured claims of about $48, GOO. He thought that the statement of a 1 bank to the effect that MT. Alvord had ] the amount mentioned to his credit was not an absolute guarantee, and that 1 the mere statement was no security. He said it might be possible that the I money had been withdrawn since the 1 bank certified to the statement, in which case there was absolutely no as- ] surance that the money would be available,
 Judge Shumway ruled that the re- l eeiver has the custody of the com 1 pany's property, and this was security enough to satisfy the court.
 Tilt Between Attorneys Attorney Geary replied to Attorney
 Deford by stating that whatever the
 custom in New York, people in Con-
 necticGt had some notion of decency,
 and did not attempt to trif1e with the court.
 Attorney Deford replied that it was
 not his intention to trifie with the court, but he was merely giving his opinion that the creditors had no ab-
 solute guarantee of their claims in the plan placed before the court. Attorney lDeford suggested that if the court adopted the plan of Attorney Geary
 that the receiver submit to the court
 rxrf rnaly Hef o4 oio{ {rnc vryt1f f1k,
 he proposed or did not propose to dis
 pute. so that the creditors would know fthe status of the matter.
 l. Receiverehip Continued. | Judge Shumway then directed that
 Attorney Cronin be continued as re-
 ceiver for another month, unless 1t
 was deemed necessary to revoke the
 dered that the receiver file a list of
 claims. as suggested by Attorney De-
 ford in one week, and directed that the, present management be discontin-
 ued, and confirming the plan given by Attorney Geary regarding payment of
 the claims.
 Asked About Bonds Attorney C. Hadlai Hull. represent I ing minority stockholders, inquired as to the bonds securing the note of S71,000, to which Attorney Geary re- piled that the note would be paid oy Mir. Alvord, and when the company had reimbursed him the bonds would so back into the company treasury. Salary Question Raised. Receiver Cronin then addressed the court. stating that since the last hear ing the question had been raised as to whether Superintendent Van Rensse- laer should be paid at the rate oi s6,0o0 a year or at the rate of s19, 900 so that he had not paid his salary as 6irArtad hv ca ot ho h CT hno ing, as he wished to ask the advice Il the court on the matter
 Voted $1o.o0o for Presidents Pay. Il Receiver Cronin produced the rec ords of the directors of the company to show that on Oct B. 1910, 1t wse voted that MT. Van Rensselaer, should receive salary of s6, 900. In January 1912. at a meeting of the directors, g vote was passed making the salary o1 President Van Rensselaer, $10000 fol the calendar year of 1912. No other vote had been passed on the matter since, and the directors of the company raised the question as to whether MT Van Rensselaer, was entitled to com. pensatfon at the rate of SIG. 900, hold ing that that salary was fixed only fol the year 1912.
 |i The court stated that no one was entitled to a salary after the receiver
 was appointed. but that they merely
 received compensation for any assist | ance that they might render the re-
 ceiver in conducting the business. Tht
 judge stated that he at least intinateC
 at the last hearing that MT Van Rens. selaer should be compensated at tn, rate of s10,0ee
 Attorney Geary brought up the ques.
 ton of reducing the office force of thu
 company and the court intimated tha.
 the receiver might carry on the affairl
 of the company at his own discretion
 retain such of the office force as h.
 saw fit, and to keep any officers who's,
 assistance he might need to oonduc | the affairs.
 Court then adjourned the hearin,
 until saturday afternoon Aug. 15, a
 o'clock.
 REGISTRARS IN SESSION.
 But Few Applications on First Day.
 Prosressives Filing Blanks Witt Town Clerk.