The Detroit times., 1908-07-29
|R0BE SUSPICION
or PREFERMENT
] BY CURR|E & CO.
~ EVIDENCE OF SUCH ACTION is
FOUND CREDITORS WILL GO TO
BANKRUPTCY COURT MEET.
ING THIS AFTERNOON.

A meeting OF the creditors sub-com-
mittee selected last week by the cred
itors OF Cameron Currie q Co.. IS on
this afternoon. at which the committee
\ will 90 over 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 4 Co. made any payment
or turned over any securities recently
which could be taken as showing an
Intention to prefer certain creditors.
IL such were the case, an action in
Bankruptcy may be necessary TO set
aside such preferences. IL not. ;hen
the committee will advise that matters
20 on In the state court.
The present status OF the proceed
ings is that some creditors, notably
the firm OF Hayden. Stone & Co., and
some OF the banks and trust COM
panies are secured creditors, having
been given collateral OF various sorts
to secure loans. This is not neces-
sarily preferment, however, as the re-
ceiver may be able to force the sale
of such collateral for the benefit OF
common fund.
Attorneys for the receiver are draw
ing some additional papers TO be pre-
sented 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 filed In circuit
court In cases arising out of the Cur
rie 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 a. 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 $165,650. 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 ". Richardson, acting for
Ella M. Whitaker. secured a similar
order returning to his client Wolver-
inc and Tamarack stock valued at 3d.
600.
A step has been taken by Fred G.
Austin. receiver for Cameron Currie
q Co. which will bring to an issue the
claims of the creditors against the
Arm of Hayden, Stone Il Co., through
which Cameron Currie & Co. did
most Of their eastern business. So fa-.
although suit has been brought by
the receiver against this firm, 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
h1ll 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 & Co. at all, but came
into the possession OF Cameron Currie
u Co. without any right on the part of
the latter to pledge them as security.
It Is further charged that Hayden.
Stone & Co. knew that Cameron Cur
RE Z Co. had no right to pledge these
stocks.
In furtherance OF these claims.
Austin asks that Hayden. Stone & Co.
be made to answer and give a state
ment OF the circumstances under
which all stocks and bonds came into
their possession through dealings |
with Cameron Currie q Co. with q |
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 viii 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 no
claims that he bought ten shares Of
Southern Pacific, paying $1.4S3.33. but
never got the stock.
Prof. j. Stuart Lathers, of Ypsilan-
Il, has fled a petition asking for the
return of 10 shares OF Ypsilanti First
National bank stock which he put up
as collateral for projected purchase.
He claims he did not make the pur-
chase. He had other dealings amount
Ing to $3,400 with Cameron Currie IL
Co.