A SWBOUND BE1900 ACR FLT HAS AN NMAC WITH A NEBOUND MOONEY NEAR 3500 FT IN PROX OF ELM CLASS C AIRSPACE; 10 MI SW OF ITH; NY.

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AS FLT XXXX FROM ITH TO ELM; WE WERE UNDER AN IFR FLT PLAN IN VMC CONDITIONS; ABOUT 5 MI VISIBILITY AND HAZE. ATC VECTORED US TO A 210 DEG HDG TO INTERCEPT THE 240 DEG LOC FOR RWY 24 IN ELM. WE WERE ASSIGNED 3300 FT; THE MVA IN THE AREA. AFTER LEVELING OFF AND COMPLETING THE CRUISE CHKLIST; I WAS THE PNF; I WENT OFF FREQ TO CALL TIMES TO COMPANY. THE FO THEN SAID 'OH XXXX.' WHEN I LOOKED UP; THERE WAS A MOONEY AT OUR ALT ABOUT 30 DEGS R OF OUR NOSE. HE WAS AT OUR ALT AND I HAD TO USE EVASIVE MANEUVERING TO KEEP FROM HITTING THIS AIRPLANE. I IMMEDIATELY TOLD APCH CTL. HE HAD NO TFC ON HIS SCREEN. I TOLD HIM IT WAS AN ORANGE AND BLUE MOONEY. THE REST OF THE FLT WAS UNEVENTFUL. NO PAX NOTICED WHAT HAD HAPPENED. A CONTRIBUTING FACTOR WAS THAT THE AREA IS IN POOR RADAR COVERAGE AREA AND WE WERE AT AN ODD; NON IFR ALT. WE WERE IN CLASS E AIRSPACE AND THE OTHER AIRPLANE'S XPONDER WAS EITHER NOT ON OR NOT WORKING PROPERLY. AFTER MY PHONE CALL TO THE ATC CTLR; HE SAID THAT HE ONLY SAW A VERY FAINT TARGET (PRIMARY) AFTER I RPTED THE INCIDENT. HE ALSO CALLED ITH TWR WHERE THE CTLR ASKED AN ORANGE AND BLUE MOONEY THAT LANDED IF HE SAW ME IN THE BEECHCRAFT. HE RPTED THAT HE HADN'T.