The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-09-17
WORSE THAN IT LOOKED.
The Georgia Loan and Trust Co.'s A.
fairs Badly Tangled.

luiAo hohAt AuhSlSut
f. s. Lathrop Appointed Permanent
Reosiver, and an Effort to Be Made
TO Get at the Condition of the Com-
pany-The Books SO Kept That Little
information Can Be Obtained From
Them-Peculiar Handling of the
Company's Stoek-Mr. Falooner Re-
leased on His own ReooEnizsnce.
Mr. f. S. Lathrop was yesterday APP
pointed permanent receiver Of the Geor-
gia Loan & Trust Company, in the supe-
riOr court.
Application for this appointment had
been made some days before by Messrs.
Hull & Lathrop, who filed a bill for that
purpose. They were represented by Law
ton & Cunningham, and William Fall
couer, the defendant in the case, by G..
H. Miller
An amendment to the petition was first
filed and an order was passed by Judge
Falligant allowing them to make the
amendment. The amendment alleged
that Mr. Falconer had been guilty of
gross acknowledgement, that he had used
the funds of the company without any
authority from the directors, and that he
had failed to make the proper entries on
the company's books.
THE PRESIDENT TNsoLvBNT.
1t stated that to the best knowledge and
belief Of the plaintiffs the president of
the company was insolvent, and said that
if he had been allowed to remain in
charge Of the company's affairs it would
have been wrecked. 1t further stated
that in their belief it was necessary to
appoint a receiver for the protection of
the interests of all concerned.
Mr.. Lawton, who appeared for the
plaintiffs, did not attack Mr.. Falcoper, but
he stated what he alleged and believed
to be the facts in the case and argued
that the appointment of a permanent re-
ceiver was the only course in view of the
circumstances that conld be pursued.
THE RECEIVERS REPORT.
The receivers report showed he found
liabilities amounting to $50 ,377. A. but as
the books had not been written up since
Dec. 81, 1892, he announced that it was an
impOssibility to make up any statement
of the assets and liabilities of the compa-
ny. No stock ledger could be found, nor
had any Cancelled certificates of stock
been presented to the receiver.
In his report Mr.. Lathrop further
says:
IAN entry appears upon the margin of
the discount book: Loan settled by for
fixture of two shares of G. L. and T.
stock This entry appears to have been
made in ink and afterward scratched out
with knife, but it is still perfectly legi-
bic on the book.
ACTED ON HIS OWN HOOK.
"The receiver is in possession of the
minutes of the company, and an eXamina-
ton of them fails TO show any authority
whatever for the settling OF this loan in
the manner indicated, or in any other
manner, and the demand note for SIS, 900
to the company made by William Falconer
on Jan. 8, 1898, appears to be an asset of
the company but the only security therefor
is l72 shares of its own stock. The scrip
however, issued in the name of William
Falconer, was not attached to it, nor is
Endorsed with any power of attorney to
transfer it. The receiver has demanded
from William Falconer the possession of
the Cancelled scrip for stock issued,
and has no reply from him except that he
is not able to produce them. According
to the books of the company, William
F'alconer is the owner of only twelve
shares of the capital stock, and those
twelve shares are pledged to the company
as collateral security for the $4,000 note,
and are claimed by Falconer to have
been surrendered to the company. to-
gether with 100 other shares in payment
and satisfaction of the note, so that, ac-
cording TO the books of the company, he
owns only twelve shares, and, according
to his own statement, he does not own a
single share"
Mr.. Falconer, in his answer, claimed
to have turned over all of the company S
property to the receiver. He made nc
resistance to the appointment of perma-
nent receiver, as he had announced he
would do.
TO UNRAvEL THINGS IF POSSIBLE.
An order was then passed appointing
| Mr.. Lathrop permanent receiver, and di
| recting F'alconer to turn over to him all
the assets of the company. He was also
restrained from interfering in any way
! with any of the assets of the company
| AMI both he and the officers of the associa
ton were particularly enjoined to render
! the receiver all the assistance possible in
| STRENGTHENING out the cOmpany's affairs
| The receiver was directed to employ all
necessary assistants and to proceed al
once to collect in all the cash and Other
assets, and to reduce all the other assets
of the company to cash as early as pos
sible.
Mr.. Lawton asked that Mr. Falconer
! be released from custody, as there was nc
further necessity for OBTAINING him, SO
long as he could be secured whenever
wanted. He is not directly in custody
| DuC Is at nDefUy on MS own recOgnlZanCe
and is supposed to be watched. Although
the matter was brought up by the counsel
for the plaintiffs the judge refused tc
sign the order
/ The proceedings were something in the
nature of surprise. Mr.. Falconer had
stated from the start that he would re
sist the appointment of a receiver, and
after a conference with Mr.. Lathrop day
efore yesterday, stated that he would
tie the case yesterday morning
THE oGLETHoRPE's SHOOT.