Vice Chancellor restrains Hudson Porcelain Co. president from selling goods while in receivership

RESTRAINS OSLAND IN SELLING GOODS

Vice Chancellor Backes Grants Burgess Relief Asked and Goes Little Further

After hearing the testimony of Richard W. Osland in support of the affidavits made by Osland, Vice Chancellor Backes in the Court of Chancery, today granted the injunction applied for by William Burgess, the pottery tariff authority. Mr. Burgess is a stockholder of the Hudson Porcelain Company, of which Osland is president.

Burgess filed the bill for a receiver for the concern upon the ground that is was pending the final hearing. Burgess asked for an injunction restraining Osland from selling the product of the conern to himself, a practice Osland had been in the habit of following. Vice Chancellor Backes granted all the relief sought and even went a little further.

He restrained Osland from selling the product of the Hudson Porcelain Company to himself, either directly or indirectly. He also ordered that goods sold by the concern must be sold direct to the customer and the money should go direct into the treasury of the company, instead of to the selling concerns in which Osland was interested.

Osland, who comes from Plainfield, made allegation in his affidavits which were not substantiated at the examination before the court today. Because of the seriousness of the charges made by Osland the Vice Chancellor yesterday ordered that he be placed under cross-examination today.

CHARGES NOT PROVED.

Osland charged that many checks had been paid to Mr. Burgess while the latter was president of the concern, for which no service had been rendered and no value received. Vice Chancellor Backes ordered Osland to produce the books of the concern today and they showed that Osland himself had made the entries showing for why the money had been paid the Burgesses. It was for money advanced, and materials and machinery purchased.

The restraint granted by the court will last until final hearing upon the receivership. Linton Satterthwaits represented Mr. Burgess and Frederick Earle Partham of New York appeared for Osland.