The Birmingham age-herald., 1910-05-28
Knight Is Still on Fishing Trip and Cannot Be LO-
 Cated by Marsha|s
HEARING IS ADJOURNED
 UNTIL NEXT WEDNESDAY,
Witnesses State That Knight Told Them He Had Knowledge That Spu- rious Bills of Lading Had
 Been Issued

Probably the most important develop ments in the Knight, Yancy & Co. meet ing of creditors yesterday afternoon was the testimony of w. D. Nesbitt and w. J. Yancey, both of whom are members of the bankrupt firm, and the failure of the United States marshal to secure service upon John w. Knight, who IS missing from tho meeting. Mr. Knight had gone on fishing trip. The hearing was ad- journed until next Wednesday.
 The testimony of Mir Nesbitt and, MT Yancey was not long drawn out, but both Of these gentlemen testified in substance that John w. Knight told them that he was familiar with the spurious bills or lading that caused the investigation which resulted in the failure of the firm.
 MT. Nesbitt testified that MT. Knight told him that bills had been issued TOT 5000 bales of cotton upon which deliver es Had not and could not be made. This testimony was carried a little further against Knight by MT. Yancey, who said Knight confessed to him that he (knight knew the bills to have been spurious.
 Referee Irritated By Absence
 The continued absence of MT. Knight has created special interest among those taking part in the case. It was stated in open court by Referee Murphy that it was the duty of Mir. Knight as a party to the bankrupt firm to attend the first meeting of creditors. The referee carried this further and said 'The continued ab- sence of John Knight upon a fishing trip while his firm has failed to the tune of s6. .o00,OOo does not set we'll upon my stomach"
 The last act of the court in regard to the absence of MT. Knight was to over rule a request of Attorney Callahan to set the case on a day other than next Wednesday, to which it was passed yes- terday afternoon. Referee Murphy said he had no knowledge that Knight would voluntarily appear, so he would not be guided by what was convenient for the attorneys of Knight.
 The United States deputy marshal who has been searching for MT. Knight pursu- ant to an order issued Thursday returned the process yesterday with the indorse" ment: "Fiehing; not in Decatur, Ala.
 Yancey Ttakes stand
 When the case was resumed yesterday afternoon at 2:S0 o'clock, w. J. YanceS of Memphis, one of the members of ths firm. was called to the stand
 MT. Yancey was questioned by Angus tus Benners of Percy Benners Burr In reply to a request to detail all the facts that he knew in connection with the case. Mir Yancey said the first ne knew of the falling condition of the nrm was Sunday morning, when ne reacheo Decatur. He said that he was called to Decatur by telegram from MT. knlgh'
 sJ immediately sought MT. Knight and he and myself went into consultation about the firm" said the witness. lie told me that the failure would involve about 36,00O, 900, and that practically every thing was gone. ra+,ons of the firm and consequently was not m possession of facts relative to the condi, tIons prior to my visit Knight con,esseo Mr. Nesbitt in connection with the firm. He said that he knew oc the existence oi hills of lading calling fo. certain paies or cotton which were not delivered ano which could not be delivered.
 The testimony of the witness was then turned into details, and after being cross examined by Attorney Oppenheim TOT short time MT. Yancey was called rom inc stand Subsequently the court re- ,aassd Mir Yancey from further attend nnna ana he returned to his home Tn Memphis.
 After MT. Yancey come w. IL. NE hit. the Birmingham member or tns Trr, who went to Huntsville ana rIa cad the company in the hands ol tna receivers The testimony of MT Nesbitt was not essentially importan' inasmuch as he. like, MT. Yancey, "as not familiar with the operations o' Kn,~ht Yancey & Co.,, except In gen eral way. c..,raa, 1T was called to Decatur Saturday nipht preceding the failure" began MT Nesbitt. "by telegram from Jon Knight. Sunday morning l went into consulratton with Knight. In a nall hour knew that the firm was hope lessly insolvent and I immediately manned out a plan to have receivers appointed. Knight did not try to shield himself but made complete confession to me. He said .nat tns firm was short about $6,OOO000, anc that speculation caused it. He volun' teered the information that bills oi la d4ng calling for 36,000 bales of cot ton upon which no shipments had beer made were outstanding
 In answer to a question as to wheth. CT Mir. Knight implicated others ir the criminal knowledge relative tc false bills of lading, the witness said
 Knight intimated to mo that oth' CTS knew of the fake bills of lading His intimations were not sufficient, distinct for me to even hazard a guess as to whom he referred. I then tolt him to shut up as did not care to hear any more about 1t. I simp Ily wished to know how bad we welt stuck and then get remedies, to whicf the creditors were justly entitled"
 Loan to Waterman
 Mir. Nesbitt was closely questioned by MT. Benners in regard to loan o 5000 which was made to a Mr. Wat Herman. agent for a Mobile steamship line. It developed that the genera belief is that Waterman is abroad ant does not intend to return. MT. Nesbit v,nam Wat arrnat1 huf di6 m