The Birmingham age-herald., 1911-01-15
KNIGHT T-YANCEY CREDITORS SEEK S2,SOO,OOO DAMAGES
 FROM TWO BIG RAILROADS
fcoNTINuED FROM PAGE D


 
 with liabilities aggregating about S50Oo,- OOO w. S. Lowell of Birmingham was immediately appointed receiver and after ward appointed trustee. Percy, Benners & Burr, the local lawyers, have been handling the affairs of the majority or creditors since the. firm went to the wall.
 The case has attraSted attention all over the globe, and this action to make the railroads share in the liability of Knight. Yancey & Co. will provoke de- oded interest.
 In the complaints filed yesterday the creditors do not minoe words in charging the railroads with joint liability. It is alleged that the railroads practiced wrongful deceit with Knight, Yancey & Co, causing them to lose a stipulated amount.
 Set Forth Complaint
 Count nine of the complaint sets out the plahtifrs claim accurately and in de- tail. It follows
 And plaintiff claims of the defend ant the other and further sum, as damages, said sum having been who'll i. ly lost by plaintiffs as the result of wrongful deceit practiced by the de- fendant, jointly with Knight, Yancey & Co.,, partnership, who are bank N rupts and are not sued herein, on plain II vtiffs, which deceit was accomplished ed vin the following manner, to-wit:
 "Plaintiffs are. and at all the times herein mentioned were. engaged in the purchase and importing of cotton at Liverpool, England; and said firm of
 sht. Yancey s Co.,, were, at all the times herein mentioned, until, to-wit: April 20. 1910, when they were duly adjudicated bankrupts under the acts of Congress relating to bankruptcy engaged in the sale of cotton and it's export from the United States their principal place ot business at Decatur Ala; plaintiffs business consisted in part of the purchase of cotton from dealers in the United States of America in the manner followed generally by purchasers of cotton at the principal European ports, at which cotton is imported; and the business of said Knight. Yancey x Co.,, consisted in part of the sale of cotton to such European purchasers, whicn were effected in the manner usually followed in such trade, except as distinguished by the frauds herein described, such sales and pur- chases being usually and customarily effected in the cotton trade legitimate ly by the negotiation by the seller of the bills of lading of carriers issued to the order of the seller for the ship ments made by the seller in fulfllment of contracts of sale made between the purchaser and seller. drafts being drawn by the seller on the purchaser or his agent. for the purchase price of such cotton with the bills of ladine for the shipment attached thereto which are to be delivered to the pur- chaser on his payment of such drafts under the practice of the cotton trade for acceptance and payment at the time of the shipment of the cotton, and are accepted by or for the purchaser oi the cotton in advance of its arrival, all of which customs prevailed at all times mentioned herein. and were well known to defendant.
 For Many Years
 "And plaintiff ayers that for many years prior to April 20, 1910. to-wit for five. years, said firm of Knight, Yan. cey & Co.,. had been in the habit and custom of issuing forged documents purporting to be the bills of Iading oi defendant for cotton received by it al