The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-08-13
COURT ORDERS SALE
OF STOCK HELD BY
HAYDEN STONE & co.
= Continues from Page one.)


He did not believe, that Hayden,
Stone 4 Co. had put up any 81, 300 900
TO carry these deals OF Cameron Cur
RE d. Co.. but would venture TO assert
that they had borrowed the money
In large part TO do such trading from
Boston banks. He declared that IL
would be impossible TO trace any par.
ticular block OF stock except by a
process OF exclusion an inclusion, TAX
Ing the transaction OF particular days
when only on block OF certain okind
OF stock was purchased.
When Cameron Currie & Co want.
ed money. they would grab up bunch
OF securities and send them down to
Boston with a draft for the amount"
said Robson. Some OF this stock
claimed by various parties may have
been pledged in this way"
Attorney Robson drew his informar
ton. he stated, from examination of a
number OF accounts in Cameron Cur
rie q Co.'s books. He had not filed
petitions In the state court but had
served papers on Hayden, Stone &:
Co. direct.
Cases Explanation.
Louis II. Case. junior partner OF
Cameron Currie 4 Co. admits that the
allegation as to margin buying on or.
ders through Cameron Currie Il Co.
were correct, but says that Robson
misunderstood the dealings, all stock
purchases having been made in the
same way. He says that. when stocks
were ordered, a certain proportion OF
the money was forwarded and the re-
mainder charged to the general &C.
count OF Cameron Currie & Co.
This explains why there has been
such difficulty by customers OF the
brokerage firm In getting their stocks
the past few months. When Cameron
Currie & Co. got In deep water, 1t was
increasingly hard to release stocks
held by banks in Boston which had
loaned the money to Hayden, Stone Il
Co. to perfect the margin purchases.
The important bearing OF the whole
matter Is In It's effect on the question
OF ownership OF the securities. Had
the stocks been purchased outright
with the Identical purchase price paid
by the customer. there could be small
question as to their ownership, but
being purchased by Cameron Currie &
Co. on margin and charged to general
10 decide whether the title ever passed
from Hayden, Stone & Co., and thSe
creditors are likely to find themselves
in the same boat with the people who
bought on margins In purely specula-
tive way and with redress only in
claims against the general fund.
The entire mass OF dealings with
Hayden Stone 4 Co. will have to be
gone into to determine whether GER
tain specific stocks were ever released
by payments made to complete their
purchase price.
When court convened Attorney F.
w. Stevens. for the receiver. read the
order dissolving the injunction
Hayden, Stone & Co. Ronald Kelly
Ormond F. Hunt, James O. Muffin and
others Immediately put in objections
and wanted the order modified to ex
cept the stocks which. II is claimed
were purchased In full.
Judge MandelI's Questions.
Judge Mandell asked two questions:
us there any statement under oath
that Cameron Currie Il Co. did not
owe $1,300.000 to Hayden, Stone &
Coz"
rs ii denied, under oath, that these
stocks were pledged as security
None OF the attorneys could success.
fully controvert these two points and
the court reviewed the progress of
the case, saying that he had felt he
had a moral, although not a strong
legal right, to restrain the sale OF
the securities until the case took form.
He could not allow speculation by the
receiver longer In the assets OF the
brokerage firm as falling market
might wipe out every bit OF equity In
the holdings.
George s. Field asked that the In
junction be continued until Aug. %.
and that answer be made by Hayden.
Stone & Co. on the previous day, Aug.
81. His clients would suffer loss by
the sale of their stocks at this time,
and wanted their stock instead OF
money.
James o. Muffin, representing Is
petitioners, declared that some of his
client wanted to peculate and want
ed to hold their stocks for a rise In
prices, instead OF taking the money
now.
"You cannot order the receiver or
anyone else to sell our property" ar
gned Murfin Until the right OF
all have been established, the court
has no right TO make such an order
Frederick H. Warren. F. II. Can
field. Thomas Hislop and others ar
gued to the same effect.
In response to question from the
court. the receivers counsel stated
that the stocks claimed by creditors
who have paid In full are worth $780,
600. while other stocks which are
also claimed by customers amount to
about half the holdings In the hands
of Hayden, Stone e. Co. IL the sale
OF all these were restrained, II would
leave but 100000 worth to sell es
against the claim OF Hayden, Stone
& Co. for s1.300.000, leaving nothing
for the general fund.
Eldredge S. Bacon and William b.
Cady took sides with Muffin against
an immediate sale but the court did
not take their view OF II
Much Opposition to Sale.
Robson was practically the only
lawyer except counsel for the receiver
and Hayden, Stone & Co, who favor
ed the sale.
Hearing in connection with the ap
pointment OF receiver as a result oil
the bankruptcy proceedings begun In
the federal court will he held by Ref
cree in Bankruptcy Davock In the
United states circuit court room Fri
day afternoon at o'clock.
IN En nv TRAIN