The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-11-13
IN A RECEIVERS HANDS.
ASS, 900 Mortgage Against the Cottage
Club Filed for Foreclosure.

Mr. George ] Baldwin Appointed Tenn
porary Receiver Of the Clubs Assets.
The Action Taken to Prevent Any Sale
of the Property or a Portion of it IN
der Small Executions - Necessary
That the Whole Property Should Be
Kept Together in Order to Preserve
Its Value.
An order signed by Judge Falligant APP
pointing Mr.. George J. Baldwin receiver
of the properties and assets of the Cot
tage Club was filed in the superior court
yesterday, together with a suit brought
by the Oglethorpe Savings and Trust
Company for foreclosure of the mortgage
placed in it's hand as trustee to secure
an issue Of $4,000 in bonds,
The Cottage Club for the last year, it
seems. has been travelling a rocky road.
Its members have taken less interest in
it since the opening of the hotel near it,
and for one or two years it has been a
hard matter to make it pay expenses.
Last summer it was leased and run as
summer hotel, losing its characteristics
as a club and being thrown open to 9TH
ers outside of the members.
The treasury has been running low, and
recently there have been no funds with
which to pay some of its outstanding
debts. Recently two small judgments
were obtained against the club, one by
T. J. O'Brien in justice court amount
ing to 1856, and the other by James
Douglass in the city court announcing to
| $12440. Within a few days executions
would have been issued for these amounts
and unless they were paid the property
might have been advertised and sold. 1t
/ was to prevent any such steps as this
! that the suit for receiVership was filed
| by the trustee, as the amounts now due
under the mortgage are far in excess
| of any small judgments that could be OBJ
tained.
The mortgage was executed by the Cot
/ tage Club to the Oglethorpe Savings and
! Trust Company July l, 1892, covering all
( the property of the club on Tybee island,
the two lots facing the strand and the
/ buildings upon them. 1t secures an issue
! of $50 bonds for $10O each, or a total issue
! of $4,000. OF these $1,000 face value were
/ placed with the National Bank of Savan-
/ nah as collateral TO secure a loan of
! $4,000, and $4,000 par value were pledged
to the Oglethorpe Savings and Trust
| Company to secure a loan of that amount
! in cash. These loans matured Oct. IS,
! 1894, and are, therefore, overdue and I'M
paid. To further secure the Oglethorpe
! Savings and Trust Company it was given
a mortgage on the personal property be-
| longing to the club on the island
The petition goes on to state that the
| club is also indebted to the Tybee Beach
| Company to the extent of $l,Sl9 on the
property ON which the club houses are
built; that it is indebted to other persons
! to the extent Of about $1,000 and that
there is a balance still due Mr.. Henry
| D. Stevens for money advanced. The
club is said to be insolvent, and there
is no money in the treasury with which
I to pay its Indebtedness.
The petition states that it is liable to
J be seized and sold under certain eXecu-
tons which have been issued or are to
issue from other courts, which would
greatly damage and injure the property
on account of the fact that it's value
. Is dependent on it's being kept together
as a whole. To be separated and sold
! piecemeal or any other way than as an
| entire property would make it worth
much less than it is for the purposes for
which it was constructed. The property
is a peculiar one, and its description is
fully given in the petition.
It is stated that it is impossible to
protect the rights of the petitioners with
out the Intervention of the court, and that
it is expedient and necessary to prevent
I irreparable damage that the property
be placed in the hands Of a receiver, and
its assets administered by the court. a
/ permanent receiver was asked for, an
/ injunction restraining the club from in
| terfering with any of the assets and
| that the court administer the assets. Sat
urday, Nov, II, was named as the day
on which the hearing will take place,
and in the meantime the property is
placed in the hands of Mr. George J.
Baldwin as temporary receiver. The suit
was filed by Messrs. Garrard, Medrim
! and Newman.