Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1900-04-05
THE KNOTT & CLOSSON FAILURE.

THE KNOTT 4 CL0SS0N FAILURE.
Some Contest Likely over the Election
OF a Trustee.
The following is n part OF a self-explan-
atory letter which is being sent out over
the names of r. T.. Brown and w. l..
Burnap of this city and Is interesting un-
der the conditions which surround the
failure OF the firm to whose creditors It
Is addressed
Burlington, VT, March 81 1900
Dear Strive have recently seen sew
eral letters that purport to have been
written by one NJ. r.. McCargar Of this
city to creditors of Knott & Closson
bankrupt brokers' asking for proxies to j.
X. McCarear of Belevile, ont, for tho
purpose of securing the election OF NJ. b.
McCarear as trustee in bankruptcy. Both
NJ. j.. and j. *. McCargar are employees
Of Knott & Closson and appear in their
list as preferred creditors to the limit the
law allows employees, viz: 1900 each.
In our opinion this would be unwisc and
would extinguish what little hope the
creditors might entertain for realizing
Ianything from the estate
We have been unable to address you be-
! fore because We had no access to the list
of creditors while Mr.. McCargar mem
her of Mr.. Knots family, having access
to the books and writing upon the station
AIRY of the bankrupt brokers. has been
able to send out these early letters of
solicitation.
The scheme is most transparent and in
our opinion an attempt on the part Of the
bankrur.s to secure trustee of their
own choosing.
The Burlington and most Of the Yer,
mont creditors are entirely opposed to this
scheme and are fully Of the opinion that
a rigid investigation Is needed to find out
how II could be that n legitimate and hon
est broker could fail with an indebted
moss of half a million dollars and practi-
cally no assets upon rising market
! If this examination and inVestiga ton Is
to he at all fruitful. it cannot come from
sources furnished and controlled by the
bankrupts, and the whole matter SHOULD
be placed by you in the hands of some
fearless. competent and Independent mar
sustaining no relations with and under nc
obligations to the bankrupts
M. e. McCargar Issues Letter in Re-
ply to Messrs. Burnap and Brown.
NJ. f.. McCargar sent the following let
ter Tuesday to the creditors of Knott &
Closson, it being in the nature Of a repl,
70 the letter sent by W l. Burnap an,
r. L, Brown, which is published above;
Burlington, VT, April 8, 1900.
Dear Sr--Cnder date of the 9lst ultimo
circular letter was sent to the creditors
of Knott g. Closson over the names Cf w
J.. Burnap and Rufus T.. Brown, attorney
of this city, assailing MIR. j. K McCarga
of Bellville, Ontario, and myself for 20
Letting proxies from creditors to repre-
sent them in the meeting for election o
trustee. In this circular we are misrepre
scented. as We are creditors to the exter
of s24 coo upon schedules from which thes
gentlemen got our names, as well as 9th
whereas
ton states we are only preferred ccedtoi
to the extent of $500
TIE fact Is that three-fourths of tn
creditors and the amount of the liabiiitie
are in Canada where Mr.. J. X. McCarya
. resides and is well known to Il large ma
1ority of them. 1t was at the explicit re
r quest of these creditors that we wer
sought to represent them and their inter
, ests in the settlement of the estate. w
! knew all the customers in Canada an
required no list of them, and are muc
3 surprised that these legal gentlemen Won
use such methods to accomplish the ain,
of few INSCRIPTIONS creditors, wh1r
they represented in suits brought to Re
cover claims outside of the bankrupt oour
, against Knott & Closson. some of NhoI
had sought TO be secured over other credi
tors, and had been refused by the bank
, rupts.
! think II Is important to elect a trus
D tee who will work for the interests G
+ the estate and not squander II in litiga
ton for the benefit more of lawyers tina
{ the creditors. Personally ! will not aC
/, cept the office Of trustee, but | will striv
r to the utmost to have elected an uprign
, responsible and impartial man who wi
n discharge his duty as tho law defines, re
: CARELESS of any Influences to thwart tn
, efforts of the creditors TO recover out {
s the estate what justly belongs to then
:, Messrs. Knott g. Closs0n have freuuentl