Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-02-09
EX-GOv. VOORHEES,
HITS ATTORNEYS IN
BANKRUPTCY CASE
Declares Receivers and COun-
sells Claims for Allowances
Are Out of Proportion.
SAYS ESTATE WAS MADE TO
PAY NEEDLESS EXPENSES
Attacks WiIfred C. Roszel and
Paul Leffert's Administration
of Hughes Concern.


Former Governor Foster M Voor-
hees, representing creditor, ap-
peared in Bankruptcy Court here to-
day and flayed the receiver and his
attorney for the allowances they
asked for their services in the matter
of the bankrupt Joseph j. Hughes
Contracting Company. Referee Ed
win G. Adams, who heard the objec-
tions of Mr.. Voorhees, and representa-
tives of other creditors, announced
that he would permit an examination
of the receiver and his accounts next
EriIay.
The bankrupt concern was adjudi-
Gated last September and the con-
ira is then untitled were carried out
by Receiver Wilfred @. Roszel and
his attorney, Paul r. Lefferts. Mr..
: voorhees, declared today that the
amount realized by the receiver for
the estate does not exceed $4,000, with
the disbursements deducted, and that
70 allow the sums asked for by
Messrs, Roszel and Lefferts would be
10 cut this sum down to about 81, 900
The clatmsiof creditors are estimat ted
at $1,000.
The amounts asked for by the re-
ceiver and his attorney in this mat
ter are out of all proportion" said
the former governor The attorney
for the petitioning creditor asks $500
For this he filed a petition and Sc
cured an order and, mind you, the
claim of said petitioning creditor is
disputed and will not be allowed. at
least more than one-tenth of it.
wish to call the attention of
your honor to the amount asked for
by the attorney for the receiver, Mr..
Lefferts,' continued counsel. "he asks
for $780,
THE receivers report showed that
he conducted the bankrupt's business
for ninety-two days. At the rate
asked for by the receivers attorney,
the latter cost the estate about $40
"a day.
'''Fhe same report of the receiver
shows that the estate did not gain
moro than $50 day during that
period
Former Governor Voorhees, express
ed regret that he was compelled to
make such objections against the al
lowances asked for by fellow lawyer,
but added that he understood the
aoul'ts mad repeatedly held that tn
attorney for the petitioning creditor
should not be the attorney for the
receiver. Referee Adams interrupted
New York but the New Jersey courts
had not made such ruling.
"The receiver himself asks for an
allowance of $916.7s, including ex-
penses, 1" continued Mr.. Voorhees,.
Just look over the account and see
: the bills for auto hire and lunches
AIere (pointing to the account OF the
receivers Disbursements we find that
he had lunch, at the expense of the
bankrupt estate, twice in one day
This is a most astounding charge for
the work accomplished"
"These sums should not be allowed
for doing things which any ordinary
man could do. What did the receiver
himself do? Was he a mere figure
head? We find here charges for
eighteen auto trips to Elizabeth, at
an average of $3.50 for each trip. The
car fare for that trip is twenty cents,
: and that doesn't look as though the
receiver tried to conserve the estate,
does it? Neither do the lunch bills
of SIPS to $2.25 EACH
"On one trip to New York we find
that the administration of these two
lawyers cost the estate Sl.9o. Then
we find trip to Elizabeth costing
US $4-all for lunches, auto hire, tele-
phone calls etc.
"They have been using the estate
of the bankrupt as a boarding house
and making it pay their board Here
we also find a charge for the re-
ceiver's work in drawing check to
himself and disbursing said money.
He was the disbursing agent, so he
charges us for drawing money to hand
TO himself.
The former Governor spoke with
considerable agitation when he shook
his finger at the court desk occupied
by Receiver RosZel and Attorney Lef-
ferts and exclaimed:
"Apd / am informed on good au-
thority that the same disbursing
agent got into a machine after draw
ing this check to himself and took a
$3.50 ride which covered a walking
distance of ten minutes. / don't be-
ieve the court will allow such wreck
ing of an estate.
1.-THE receiver did not need a '$40-a-
day man to help him carry on the
work interrupted by these proceed
ings 1t was a business mans job and
does not represent So, POO worth of legal
work that Mr.. Leffert asks for If
the receiver thought he needed the
services of another person while
visiting the locality occupied by the
- workmen why didn't he hire q con-
stable for SO a day instead of taking
's40-a-day man along with him?"
A '$40-a-day lawyer drew up the
receivers report. What had he done
as receiver, I'd like to know The
receiver had had considerable expert
ence as receiver and trustee in other
cases. but I'd just like to say this,
he has overstepped the mark on this
OCCASION"
Mr.. Voorhees, then asked Receiver
Roszel if certain sums placed among
the amounts received in his report
We're actually paid into the estate.
The receiver started an explanation,
but Mr.. Voorhees, declared he wanted
yes or no answer. The receiver
replied that he had. not received the
amount stated OF SO, $50 reported on
two accounts the receiver admitted
there was at present a shortage of
$4,000.
"a fair allowance should be made
to the receiver and his attorney, by
all means" concluded the former gov
ernor, "but no such sums as they
have applied for here for running an
estate which may or may not show
a profit from their work.
Mr.. Lefferts answered the charges
of Mr.. Voorhees, by reciting the
tedious detail which the work of
completing the Hughes company con-
tracts involved. The amounts stated
in the receivers account were spent
legitimately and for the benefit of the
estate. Mr. Lefferts added that If the
former Governor insisted he would
deduct the amount charged for
lunches.
Honestly. do you think you had
(Conffnucd ON PAGE 4. Column 81