The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-07-23
CREDITORS TO GET
STATEMENT OF
CURR|E ASSETS
INFORMATION ON SECURITIES IN
VAULTS OR HYPoTHEcATEo
WILL BE FURNISHED AT ONCE,
RECEIVERS AUDIT FOLLOWING.

An arrangement has been informally
entered into between the creditors
committee and the attorneys for Re-
ceiver Fred g. Austin, in charge of
the business of Cameron Currie & Co.
The creditors are to be given in
formation at once as to the nature and
value Of the securities In the vaults of
the company and also OF the securities
hypothecated here, in New York and
In Boston. Getting this information
is to take precedence over the audit
into the bookkeeping methods and the
status of the firms accounts.
Ii II is desired, the creditors com
mittee is to be represented by an aud
itor during the audit of the books OF
the receiver.
This result was reached after a
meeting of the creditors committee
held in the Office of Attorney John ].
{. jackson in the Union Trust building.
Tuesday afternoon. Receiver Austin
was not present, but was represented
by Attorneys Boynton and Stephens,
who acceded to the requests made
verbally. 1t was agreed to have the
requests made formally in writing
"Wednesday so that written agree
ment can be perfected.
Besides the report as TO securities
held and hypothecated, the creditors
desire report as TO the nature of the
firms long and short accounts.
There was no talk of bankruptcy or
criminal proceedings In the creditors
meeting. the committee members feel
ing that IL Is necessary, first of all.
80. xA4 H. ~A& g~.s- -
and methods of the firm before pro-
ceeding to any further action. II it
appears that the creditors will get
what Is coming to them. there is small
likelihood of any action other than
the present receivership.
To Determine Status of Creditors.
A legal struggle is possible TO de-
termine the status OF the various
classes of creditors of the firm. There
were depositors who left money or
stocks with the firm without having
speculative account, although there
are few OF these: there are the Gus
toners who bought stocks outright
and paid for them, and the third-class
consists OF the margin traders who
have balances due on their transac-
tions.
The depositors will claim and prob
ably secure preference in the receiv-
er's fund when the business is closed
out. The customers who bought out
right will also claim preference.
There are various opinions held on
this matter. John j. Jackson, one Of
the members OF the creditors COM
mittee, has given much attention TO
this phase or the case.
"A recent decision in the federal
courts bears directly upon the situa-
ton Of many customers OF Cameron
Currie & Co.," says Mr.. Jackson. I'm
this case a man had an account with
broker and balance standing to HIS
credit. He had bought stock and paid
for Ii, but left IL as collateral with
the broker TO secure his account, al
though he was not indebted 10 the
broker. The court held that the GUS
toner had lien on the fund for the
full value of his stock
TN transactions where the stock Is
paid for outright. the broker is not
the owner OF such stock while II is in
his possession. but acts as bailee."
Receiver Issues Statement.
Receiver Austin issued the follow
Ing statement Wednesday morning:
Since my appointment as receiver
Saturday have been doing all in my
power TO acquaint myself with the &C
tual situation in order to determine
what the interests OF the creditors re-
quire. Many creditors have come to me
for information regarding their par
ticular affairs, and have already re-
iCeivcd large number of letters which
a have scarcely had time to examine. |
AL l can say now Is that | intend |
10 do all In my power to get the best |
possible results for all creditors, and |
II shall take no important step with |
cut the express approval Of Judge |
Mandell after full presentation OF |
the facts; and. OF course, there will |
be no distribution or money and no
delivery OF securities by me until all |
questions of preference have been de- |
cided by Judge Mandell MACPHERSON |
4 Co., expert accountants, are now en-
gagged In an examination OF the books
and the preparation OF schedule OF
assets and liabilities which will be
hled In court as soon as IL Is ready"
First Case in Court.
OhS VI tHc vital points In regard
TO the rights of customers OF the frm
OF Cameron Currie & Co. was brought
up in the Wayne circuit court We'd
neSday morning when an application
was made for an order to compel the
receiver to turn over TO the Rev.
Clarence Bull so shares of Copper
Range stock.
The petition sets up that the stock
was deposited with the broker June
"a as security for possible loan. MIR.
Bull was going away on his vacation
at that time and believed that he
might possibly wish to draw some
money while away so that ne left the
stock to cover such a draft AS Lo
draft was made. he claims that the
stock is still his without any posi-.
bility OF doubt
Judge Mandell refused to grant such
an order until the creditor had an
opportunity to come into court
One fact which has caused some OF
tbs attorneys interested to talk OF
bankruptcy proceedings Is the fact
that no order OF the state courts
would prevent the Boston and New
York housesN which handled Cameron
Currie & Co.'S business from selling
the stocks deposited with them. The
creditors claim equitie In these
stocks.
Merely a Second.
What brought you here. my-poor
fellow" the Chicago settlement work.
or asked.