The Birmingham age-herald., 1910-07-03
Tells of His First Intimation That Something Was
 Wrong With Firm
OUTLINES A TALK
 HAD WITH KNIGHT
Says That If Illegal Methods HaSe Keen Practised Those Who Are
 Responsible for It should Be Made Known

At the meeting held yesterday in con- nection with the Knight Yancey & Co. case, w D. Nesbitt, one of the members of the firm, requested permission to make statement about the firm of Knight, Yancey & Go.
 The statement of Mr. Nesbitt in a meas ure disclosed the real conditions of the firm. In his statement he charges that the special examiners employed to ex- amino the books made errors in saying that the books were correctly kept, and the statement pointed out many addi- tional facts of interest in connection with l the case
 The statement of MT. Nesbitt follows:
 Birmingham, June 6, 1910.
 For the purpose of acting as brokers in the sale of cotton, especially to south ern mills the firm of W. D. Nesbitt & Co. was established in 1902 as a partner ship of w. D. and R. H. Nesbitt, and has continued in business to this time. It has always met its obligations fully, is entirely solvent at this time, and has always been; every legal claim against that firm, whether now due or to become due at later date, will be paid at 100 cents on the dollar.
 The firm of Knight, Yancey & Co.,. was formed as a cotton buying partner ship in 1901 or 1902 by J. w., Knight and w. J. Yancey, and its present status Is matter of inquiry by the bankruptcy court
 John W. Knight had been my personal and business friend since 1888, when I first came to Alabama from the University of Georgia, and he was still student at Vanderbilt university.
 Tn the summer of 1903 W. D. and R. H. Nesbitt exchanged with J. W. Knight and w. J. Yancey one-third interest in the business of W. D. Nesbtt & Go. for a | like interest in the business of Knight, Yancey & Co.,, and after September l, 1903, the four individuals were partners in both W. D. Nesbitt & Co. and Knight, Yancey & Co. on the following basis for division of profits and share of losses:
 In Knight, Yancey & Co. J. W. Knight and w. J. Yancey each had one-third. w. D. Nesbtt 20 per cent, R. H. Nesbitt B 1-3 per cent.
 In w. D. Nesbitt & Co.,. J. W. Knight and W. l. Yancey each had one-sixth, W. D. Nesbitt 10 per cent and R. H. Nesbitt 26 2-S per cent.
 Drew as Salary
 'W. D. Nesbitt drew no salary for either ". D. Nesbitt & Co. or Knight Yancey & Co.,, his active work being in developing the warehouse and compress ing interests in which the partners had investments. J. W. Knight and w. J. Yancey drew salaries from Knight, Yan- cey 6. Co. and R. H. Nesbitt from w. D. l Nesbitt & Co.,, the two former managing the business of Knight, Yancey & Co. and the latter, in connection with W. D. Nesbitt, the business of ". D. Nesbitt & | Co.,
 "The contract of 1903 was for one year and was renewed yearly with slight changes until September 1, 1907. The principal changes made were that l J. W. Knight was allowed an increase in salary and that W. D. Nesbitt was for a time allowed a salary of $500 per year from Knight, Yancey & Co.,, for supervising the buying at the Bir- mingham agency which was closed In 1907 and ". D. Nesbitt ceased to draw a salary.
 Sections and { of this contract, a copy of which is on file in the court were as follows:
 "'Section 2. R. H. Nesbitt, w. J Yancey and J. w. Knight are to give their time and attention to the further ance of the business of Knight, Yancey & Co. and w. D. Nesbitt & Co.,, and are to receive each fifteen hundred N1oo0) dollars per year salary, startin g on September l, 1908. W. D. Nesbitt is to give general supervision to the selling to Southern mills and to the buying of cotton in the Birming gham district, and to aid both firms by his individual efforts and advice in the fi- nancing and general extention of the business It is understood that on ac- count of his connection with warehouse l interests that he can not give all of his time to the detail work of the busi- ness of W. D. Nesbitt & Co.,, and Knigh t, Yancey & Co.,, and therefore, he shall draw no salary"
 "'Section 4. Knight, Yancey & Go. agree to sell through W. D. Nesbitt S Go. all cotton to Southern mills, and to pay to W. D. Nesbitt & Go. on the first of each month 25 cents per bale on all cotton which they may have sold di-