The Birmingham age-herald., 1910-07-23
M'KN|GHT WILL BE
 GIVEN HEARING IN
 BIRMINGHAM TODAY
Declines to Discuss Arrest on Charge of Fraudulent Use
 of the Mails
MILLER MAKES BOND IN
 COURT AT HUNTSVILLE
Arrest of Two Well Known Cotton Men Creates Sensation in Colum- bus, Miss, Where Both Are
 Well Known

J. l. Mcknight of the cotton brokerage firm of Steele. Miller X Co.,, who was ar rested Thursday night by United States deputy marshas charged with using the government mails for fraudulent pur- poses, will appear before United States Commissioner R. B. Watts this morning in the federal building.
 The hearing will be for the purpose of making MT McKnights bond returnable to the United States court in Oxford. Miss. in lieu of the bond made here when he was arrested.
 The bond previously given was for s15,- GOO, and this sum will be retained on the new bond. Commissioner Watts stat ed yesterday that Mcknight was to be sent back to Mississippi for hearing July 2s. His hearing will be on the same day as that of John H. Miller. who was ar rested in Decatur simultaneously with Mcknight here.
 The arrest of the members of the firm of Steele. Miller & Go. created intense interest in Birmingham, principally or
 
 discussion that have accompanied the failures of Knight, Yancey & Co. and the Steele Miller failure. In Birmng- ham yesterday it developed that Steele Mcknight. Linde and Miller. who com pose the firm of Steele Miller 8 Co, were all in Birmingham Wednesday, The pur- pose of the gathering here could not be 5ata rl iv, it is Ia, lieved the presence of all the members here was nothing more than a coinci- dence
 MT. Miller went to Decatur. where he was arrested: MT Mcknight remained in Birmingham, while no information has been obtained as to the destination of the other members of the firm
 Mcknight Declines to Talk
 MT. Mcknight. after remaining at the home of a friend on Shades mountain Thursday night, came into the city yes, terday morning. He was in an office In the First National Bank building sev- eral times throughout the day, and was finally reached over the telephone.
 T have no statement to make of any kind.' said MT. Mcknight T will be in the government building tomorrow (Sat- urday), I suppose, for some detail ar engagements"
 In answer to inquiries as to whether he had made any efforts to secure counsel MT. Mcknight reiterated, T have nc statement to make"
 The charge of using the mails for i:- legal purposes is used to cover the send. ing of forged or false bills of ladine through government mails The affidavit which gives fully the charges, follows:
 Form of Affidavit United States of America. Norther, district of Mississippi, Western Di vision.
 Before me, L. F. Oldham, United States commissioner for the northern district of Mississippi, western division personally appeared this day VII. liam E. Stone, assistant United States attorney, who being first dull, sworn, deposes and says on in formation and belief that on ol about the 1st day of May, A. D. 1910, at Corinth, Miss, Alcorn county Mississippi in said district, Louis c Steele, John H. Miller, c. H. Gustave Linde and James I. Mcknight, in vio- lation of sections number 34 and mum Der 215 of the criminal code of the United States did unlawfully conspire to commit an offense against the Unit. ed States, in that they. the said Steele Miller, Linde and Mcknight aforesaid doing business under the style and firm name of Steele, Miller x Co, devised scheme or artihce to defraud divers persons of their money and property by the use of the postoffice establish ment of the said United States, said scheme or artifice to defraud devised by said Steele, Miller, Linde and Me- Knight aforesaid to be effected by inc use of the postoffice of the said United States, consisted of forged bills of lad ing for cotton sold to. divers persons accompanied by a draft for payment of same, drawn, on said divers parties for whom said bills of lading' for sald cotton was supposed to have been sold and in the furtherance of said scheme or artifice to defraud the said James I. Mcknight aforesaid, did deposit or cause to be deposited in the name oi Steele, Miller & Co.,. in the postoffice of said United States at Corinth. Miss divers letters addressed to one F. Van Gerpen, New York, N Y, which said letters so deposited contained said drafts and bills of lading for said cot ton. supposed to have been sold by the said Steele, Miller & Co.,, to divers per- sons as shown by said bills of ladine therein. when in truth and In fact sa i'd bills of lading contained in said let ters were false and forged. and repre- scented no cotton alleged to have been sold to said parties and said drafts for same, covering said bills of lading were false, and nothing more nor less than a sch eme to defraud said persons of their money and property contrary to the form of the statute in such cases made and provided and against the peace and dignity of the United States of America.
 "Deponent further says that he has reason to believe and does believe that w. c. Watson, postoffice inspector. Co., lumbus. Miss. F. Van Gerpen. New York N. Y.; Bernhard Ehrhar rdt New York N. Y. CBremen. Germany). Ed ward F. Elliott, Memphis. Tenn, are material witnesses to the subject mat ter of the complaint"