The Birmingham age-herald., 1910-07-03

in view of this fact and the additional fact that apparently the firm owed about So'oo We turned over to MT. Knight for use as collateral by the firm of Knight, Yancey & Co.,, all of our unpledged se ourities. amounting to about $50 GOO. These securities at that time were amply suf hcient to pay our share of any part nership loss then supposed to exist. These securities have remained with Knight .Yancey & Co.,, ever since and were of record in their papers at the time of their bankruptcy.
 The limited partnership contract above referred to was signed in September, 1907, by all the partners and the orig inal left with Mir Knight for filing in the probate office at Decatur There was some delay in doing this and finally in October MT Knight told me that in or der to file the paper properly the firm name would have to be changed and the change indicated on their letter-heads. This, he said. they did not want to do. and especially at that time since it would likely result in some limitation of the firms credit and they needed the benefit of 1t all to recover from this bad year. He insisted that it was unfair to Yancey and himself for my brother and myself to force this change and nandi- cap them when we had derived the bene- fits of the prosperous years. His argu ment to me seemed sound and just and l agreed to wait for a more favorable time to get out. This limited agreement is binding, therefore only between the mart ners; and W. D. and R. H. Nesbitt have claimed nothing under 1t as against the creditors of Knight, Yancey & Co.,, but 1t is referred to in order that it may be clear that by agreement among the partners, w. D. and R. H. Nesbitt have no interest In Knight. Yancey & Co. ex- cept m investment interest and did not and could not have any active manage ment Of the business except as specifcal- ly delegated to them from time to time. Clause of this contract is as follows Section 2-W D. and R. H. Nesbitt from this date withdraw from all active par ticipation In the management of the af- fairs of Knight. Yancey & Co.,, and re- main only as limited partners, and re- ceiye no salaries from Knight, Yancev & Co.,
 This agreement, made in September l90l. was renewed in September, 190S not renewed in September, 1909
 Affairs of the Company
 Now, as to the condition of. the af- fairs of Knight, Yancey & Co.,:
 "J. w. Knight. since my connectior
 
 ment of the business, and the emploves were under his direct control. His con. tract agreement especially sets out tha, he is to furnish to the other partners ful and correct statements of the business | The statements which he has furnished or had furnished by employees in his office to the partners have shown ID to and in cluding June 1909, that the firm had mad, money every season except 1906; that i never owed more than the partners wer, able to pay, and never, except in 190 (afterN the losses of 1906 were charged in when liabilities exceeded assets $4s, 900 have the liabilities been as great as tn, assets. Examinations show that the tria balances furnished correspond with tn, face of the ledger, but it now appear. that where there were outstanding an, bills of lading for which cotton had no been furnished and shipped, the ledge does not show the true condition of tn, business, The money derived from th' salesof foreign bills of exchange to whicl it now, appears spurious b.lls) of ladint were attached, was rcredited) to cottor account and the face, of the letger, there