The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-01
LuMRER DEALERS FAIL.
A Temporary Receiver Appointed for
Austin 81 Boylston.

ATLANTA, ga, Aug. 0L-J. C.. Clark
was to-day appointed temporary receiver
for Austin & Roylston. lumber dealers. The
firm has been failing for several days, so to
speak, and the coup de grace which came
to-day was not unexpected. The petition
ers are the L0throp- Hatten Lumber Com
pany and Stillwell, Millen q Co. To these
firms Austin & Boylston are indebted 5000 80
and 81, 303 IS, Of which amounts 1928 and
$l,070 are past due. Tho petition is a
very salty document 1t reciles that on
Aug. % mortgage was given Mrs. Hester
d. Boylston, covering the entire stock. for
1924, S25. Mrs Boylstol is the mother of
the junior member. On the same day Mr..
Austin gave Mrs. BoyIston another
mortgage on his personal property to
secure tire Same indebtedness. On the same
day Mr. Austin gave TO Mrs. Mary r. Ans,
tin aud Miss Minnie G.. Austin, near rela-
tives, mortgages on the same (hs) property
for $12,O 900 and 5000 respectively. The
petition charges that
THESE MoRTG AGES ARE FRAUDULENT.
that the tax returns show that Mrs. Bowl.
ston, Mrs Austin and hiss Austin could not
rave been possessed OF the amounts
claimed to have been advanced nv
them. On Aug. IA Austin a. Bovlston
prepared end sent out to their creditors a
schedule of liabilities and assets ami a state.
ment of their condition. In this statement
no mention 10 made of any Indebtedness to
Mrs. Austin or TO Miss Austin Mention is
made of an unsecured Indebtedness
to Mrs. Boylston of 5000 only. Since
that date the stringency of the money
market has been such that it has
been impossible for Mrs. Boyl5ton. Mrs.
Austin and Miss Austin TO obtain the sums
of money claimed to have been advanced
on any sort of collateral. In the statement
of Aug. II the total Indebtedness of the firm
was put at $685. 900, but the petition shows
that it must have been very largely in ex-
cess of that amount.
Tue petition further alleges that the
mortgages were made secretly, aud that
there were divers irregularities in recording
and handling them. Another allegation is
that the financial statements furnished by
tie firm through Dun and Bradstreet were
false and misleading aud made with fraud
ulent intent. Still another allegation is
that recently the firm has been selling lum-
Der at unaccuuntably low rates to dealers
10 Atlanta.
THEIR CREDITORS.
Besides the. mortga9& already referred
to, the firm is iudebtM to the Southern
Bank and Trust Comp By about 223, OCO, to
Charles r. Goldman $50, to the Atlanta
Banking Company add $780, 900, to judg-
ment creditors about SNUUO, on open ac-
counts and bills payable about IS, 900, with
other Indebtedness, MAILING total Of about
$4,000. an amount LARGELY in excess of
their assets.
The petitioners asked fbr temporary re-
ceiver and for an injunction restraining
Austin g. Hoylston and the holders OF the
mortgages from disposing further of the
property, that the mortgage be declared
null and void and for permanent receiver.
Judge Richard Clark, before whom the
petition was heard, appointed temporary
receiver, as stated above, and the motion
for permanent receiver and writ of in
junction will be heard before Judge Mar
shall j. Clark next Saturday. Meanwhile
the defendants are restrained as per prayer
for injunction. Both Austin and Boylston
are quite young men, and have always
stood we'll here. Austin is Sunday school
superintendent.