The Detroit times., 1908-08-14
COURT ORDERS SALE
OF STOCK HELD BY
HAYDEN-sT0NEC0.
PROCEEDS, MINUS BOSTON
FIRMS CLAIM OF 81, 800, 900, WILL
BE TURNED OVER TO REcEIv-
Err FOR CREDITORS.

En- FOH OnGbl OHo.
After listening to the arguments
OF dozen lawyers. who represent eli
ents claiming TO be creditors OF Cam
eron Currie & Co.. Judge Mandell. on
petition of Receiver F. G.. Austin.
Thursday morning dissolved the in
junction restraining Hayden. Stone
& Co. from disposing OF the stock
held by them as collateral for claims
against the defunct firm.
Not only was the injunction dis
powering and directing the receiver to
order the sale OF the stocks. Hayden,
Stone a. Co. are also directed to turn
over to the receiver the proceeds OF
the sale over and above the amount
OF their claim OF $l,300.000. AT the
present market values the stocks SO
held should bring about 1925. 900 above
Hayden, Stone 4 Co.'S claim.
This action of the court was taken
In face OF vigorous opposition from a
number of attorneys. 1t was argued
that as long as Hayden, Stone & Co.
held the stock creditors knew where
their property was, and could trace II,
but as soon as the sale was made
the stock was gone, and creditors had
only Hayden. Stone q Co.'S financial
standing to depend on. They may be
worth millions, and they may be on
the verge of bankruptcy. was the way
one attorney expressed 1t.
Statements OF this kind brought
from Attorney Elliott G. Stevenson a
statement Of the attitude of Hayden.
Stone Il Co. He said that his clients
were willing to submit themselves 10
the jurisdiction of the Wayne county
court provided the creditors would do
the same. He said that threats had
been made to commence proceedings
in Boston. and his clients didn't pro
pose 10 have one man suing In Bos-
ton and another in Detroit.
Stevenson's Statement.
Hayden, Stone & Co. intend to
deal honestly with everybody in this
matter" Numbered Mr.. Stevenson.
Their claim against Cameron Currie
& Co. is a valid one, and represents
over 100000 OF actual cash paid out
just 30 days before the failure. Cam
N
have their accounts with two large
eastern houses consolidated. and Hay
den, Stone & Co. bought those ac-
counts. Hayden, Stone Il Co. paid out
their good money honestly, and they
want TO demonstrate TO the people OF
Detroit with whom they expect to deal
in future. that they will do the right
thing. II there has been any crooked
g,N 81 hses h,.at
Hayden, Stone & Co. have had moth
ing to do With 1t. We are willing
to pay into court every dollar we re-
ceive above our claim. and then meet
the attacks of every creditor, provid-
ed these suits are heard In this
court"
James o. Muffin was one OF the
principal DIRECTORS to the dissolution
Of the injunction, and after Judge
Mandell announced his intention to
grant the order. Mr.. Muffin gave no
tice that he would hold Hayden, Stone
& Co. responsible If they sold his
clients stock.
I'VE will sell as soon as We can"
Mr. Stevenson replied, land then set.
tie in this court"
Light on Firms Methods.
Light was shed on the transactions
ing before Judge Mandell which will
be OF great interest TO the creditors
who claim preference because OF hav-
ing purchased stock outright. Attor-
ney Frank E. Robson declared in his
argument to Judge Mandell that the
dealing of Cameron Currie & Co. with
Hayden, Stone & CO. and other brok-
erage firms have been entirely on a
margin basis.
THE money paid to Cameron Currie
e. Co. never went TO Hayden, Stone d
Co." was one Of his statements. He
added that, In his view. the transac-
lions would finally wash out so that
certain equities might be proven for
certain creditors to give them a pref
erence, but that most OF the claims
would have to go into a general fund.
He did not believe that Hayden,
Stone & Co. bad put up any $1.900.000
to carry these deals OF Cameron Cur
RE & Co., but would venture to assert
that they had borrowed the money
Boston banks. He declared that II
WOuiu NC llupOSSlDie W trace any par
ticular block of stock except by
process of exclusion an inclusion, TAX
ing the transaction Of particular days
when only on block OF certain kind
of stock was purchased
When Cameron Currie & Co. want
ed money. they would grab up a 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 informa-
ton. he stated, from examination OF a
number Of accounts in Cameron Cur
rie-& Co.'S books. He had not filed
petitions In the state court buf had
served papers on Hayden. Stone x
Co. direct.
Cases Explanation.
Louis II. Case, junior partner OF
Cameron Currie & Co. admits that the
allegation as to margin buying on or
ders through Cameron Currie & Co.
were correct. but says that Robson
misunderstood the dealings. all stock
purchases having been made in the
same way. lie says that, when stocks
were ordered, certain proportion Of
the money was forwarded and the re-