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

on September g, October and October 22, and called 1t to MT. Yancey's attention in a telegram on October 29. While l was annoyed by the failure of MT. Knight to furnish the statements, l accepted without question as true his statements to me that the press of business pre- vented his doing this and finally let the matter drop until the spring and had, on the very day I received his wire to come to Decatur, talked to him over the phone about getting out his shipments and clos ing down the business early in the sum mer that we might get out full state ments, take inventories and straighten up the shop.
 First IntimatioD of Trouble
 My first intimation of anything wrong in Knight Yancey & Co.'S matters camo from Mir Knight himself about Il o'clock Sunday morning, April r, when few moments after had met him at his tele- graphed request, he said: You will be terribly shocked at what I am going to tell you-I have deceived you; the firm is hopelessly insolvent to the extent of sev- eral millions Continuing he said he had made nothing out of it; had no money to employ lawyers: that he was responsible for the condition, his pride having made him conceal from Yancey and myself losses while he tried to work them out
 in the market and lost more. asked him how it was possible for the firm to get sufficient credit to owe several mil lions. He answered that Knight. Yancey & Go. had secured money on drafts with bills of ladng attached for about 36,0o0 bales more than they had cotton to cover. asked if anyone had profited by these transactions. He answered that some others knew of the condition but no one had profited directly by the knowledge.
 T was stunned but realized the ne- cessity of prompt action by an authori- tative hand in order that all creditors might share alike. I immediately notified the other partners and as rapidly as was possible made up the schedules required under the bankruptcy act. This work took two days and two nights, and on Wed nesday, April 20, the federal court was notified of the conditions and asked to appoint receivers to immediately take charge of the firms affairs. During the three days after my knowledge of con- ditions and before the appointment of re- ceivers I purposely did not take charge of the business or assume any authority. knew only in a general way the condi- tions and wished the courts appointee to come on the premises and learn the facts and assets at first, hands rather than through me as being temporarily In any way in charge.
 .'W D. & R. H. Nesbitt have arranged to liquidate their partnership business and deliver to the creditors of Knight, Yancey & Go. all their net assets. ''We wish to, as early as possible, turn our attention and effort to establishing our individual business, but for any | reasonable length of time we are ready | to give our time, effort and suggestions | to the creditors or their attorneys in making plain any matters about which there is or may. be doubt.
 | "rhe indications are that creditors of Knight, Yancey & Co. have been, by de- ception, caused heavy loss. Personal jus- tice to all parties and future financial security demand that if illegal methods have been practiced those responsible be known"