The Detroit times., 1908-07-28
SUSPICION
Of PREFERMENT
BY CURR|E & co.
RI EVIDENCE OF SUCH ACTION Is
FOUND CREDITORS WILL GO TO
BANKRUPTCY COURT MEET
ING THIS AFTERNOON.

mittee selected last week by the cred
itors OF Cameron Currie & Co., Is on
this afternoon, at which the committee
will go over a communication from Re-
ceiver Fred G. Austin. The results OF
this session will be communicated to
the creditors In general meeting To
be held within few days.
The prime object In the committees
Investigation Is TO find whether Cam
eron Currie Il Co. made any payment
or turned over any securities recently
which could be taken as showing an
intention to prefer certain creditors
Ii such were the case, an action In
bankruptcy may be necessary TO set
aside such preferences. IL not. then
the committee will advise that matters
90 on In the state court
The present status OF the proceed
ings Is that some creditors. notably
the Arm Of Hayden. Stone & Co., and
some OF the banks and trust CON-
panies are secured creditors, having
been given collateral OF various sorts
TO secure loans. This Is not ncces-
sarily preferment. however, as the re-
ceiver may be able to force the sale
Of such collateral for the benefit of n
common fund.
Attorneys for the receiver are draw
Ing some additional papers to be pre-
scented to the court. Wednesday which
will deal with the securities now in
the hands OF the receiver.
Forty-Two Intervening Petitioners.
Up to noon on Tuesday AZ interven-
ing petitions had been fled in circuit
court In cases arising out OF the Cur
RE failure. These petitions are filed
by customers OF the firm. who allege
that stock, which had been paid for
and never delivered, had been placed
by Cameron Currie 4 Co. with Hay
den, Stone & Co. and others as Sc
curity for loans made to the defunct
concern.
The cash claims in these petitions
aggregate $l65,650. but the total value
OF the claims will be double that
amount. as many OF the petitions
mention only the stock purchased,
and do not state its cash value.
An order was made by Judge Man
dell. Tuesday, returning to Mary Hol-
1y Is shares OF Nipissing stock held
by the receiver.
Hedley V. Richardson, acting for
6SA10 M. w htdhCl, btauAOd ShhAAaoA
order returning to his client Wolver-
ine and Tamarack stock valued at 49,
900.
A step has been taken by Fred G.
Austin. receiver for Cameron Curric
4 Co. which will bring to an issue the
claims OF the creditors against the
firm Of Hayden, Stone & Co, through
which Cameron Currie q Co. did
most OF their eastern business. So fa-.
although suit has been brought by
the receiver against this Arm, the lat
ter has refused to make any formal
appearance In court or pay any atten-
ton to the claims of creditors.
Receiver Amends Claim.
Receiver Austin now charges. In an
amendment to his original bill. that
Hayden, Stone & Co. were aware OF
the nature Of transaction by which
Cameron Currie & Co purchased
stocks. for which customers paid In
full before the stocks came into the
possession OF the brokers. He also
alleges that certain other stocks and
bonds were not purchased through
Hayden, Stone Il Co. at all. but came
into the possession OF Cameron Currie
& 10. Wituout any ii6hs oh 'hS P@At "a
the latter to pledge them as security.
1t Is further charged that Hayden.
Stone & Co. knew that Cameron Cur
RE & Co. had no right to pledge these
stocks.
In furtherance Of these claims,
Austin asks that Hayden, Stone Il Co.
be made to answer and give a statos
ment Of the circumstances under
which all stocks and bonds came into
their possession through dealings
with Cameron Currie a. Co. with
statement OF all the agreements under
which such collateral Is held.
The effect Of this amendment will be
to force Hayden. Stone & Co to come
forward and fight for their claimed
preference or else defy the court. In
which case the fight will be taken to
the federal courts OF Boston or thrown
into the bankruptcy court here.
Ernest Kimmich fled an interven
Ing petition on Monday In which he
claims that he bought ten shares o;
Southern Pacific, paying $1.48S.33, but
never got the stock.
Prof. j. Stuart Lathers, OF Ypsilan-
Il, has filed a petition asking for the
return OF 10 shares of Ypsilanti First
National bank stock which he put up
as collateral for a projected purchase.
He claims he did not make the pur.
chase. He had other dealings amount
Ing to $1,000 with Cameron Currie &
Co