The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1896-12-27
BUSINESS MATTERS.
Receiver for the Security Nortrnr-
ana Trust Company of Dallas

| ss'N hTuHt Sompuny of Dallas.
Dallas, Texas, December 2G-In the -Four.
'eenth Judicial district court this evening
Judge w. j. j. Smith appointed II. A. kah-
lei receiver OF the Security Mortgage and
trust company OF this city The apooln, q.
iNent was made upon the application of +
L. Irrelevant, president, who acted unon
the unanimous vote OF the board OF direct
ors
Included in the assets of the concern Is
the Trust building in the city. a struct,re
OF pressed brick, six stories In hatch,
erected at cost of $3.50, 600 upon wn;on
,.eic are mortgages aggregating Sli5 900
included in the debenture assets of ,he
company. Receiver kahlor has been tl,.
companys manager. The board of direct
ols Is composed OF prominent business me-,
as follows: j. 7. Irrelevant, j. q. O'Con
nor sam f. Cochran, a. Il. Andrews. J
w, hoach, Alex Sanger, +. S. Miller. d.
Edward Greer.
The condition of affairs is ey,i,,r,, A.,
eth following statement made by President
lrtz want TO the correspondent of The Pos,
Inc iaiiure is due to the long continued
depression in real estate together with tha
genera! financial stringercy of the last five
years Defaults In payments on the par.
oi borrowers has steadily increased and
sales in real estate taken as collateral have
decreased during these five years until wo
nave nearly million dollars worth Of
such property to care for including de-
iauited mortgages sold and guaranteed All
OF the capital and surplus of the COMPANY
S5'5,ooo is thus absorbed and there is no
promising outlok for the immediate future
we 90 not owe Il cent to any bank; our OBJ
legations arc only to purchasers Of our Sc
hn form nf I,s,.,
bonds or guaranteed loans. BY short tim.
borrowing to meet Immediate demands we
fnlght nave continued another year, and If
there was rally in real estate could lossl-
tiy pull through without failure on the
olher hand, to go on meant to take chances
OF being forced into liquidation at some in
opportune moment. whereby uncompletel
transactions might cause loss to Innocent
patrons and cause unmerited blame upon
the board of directors. Having our affairs
now completely in hand and perfectly
clean record of nine years honorable deal
inss, the directors unanimously voted 10
Apply FOR receiver to the end that the
AFFAIRS OF the company may be wound UP
as eXpetitiousy and economically as pos
sible, and with impartial fairness to all
holders of our securities. We believe there
VIII be no loss to any save stockholders.
About 30 per cent of the capital stock Is
owned in Dallas. the remainder in New
oTk, fnllnleIpnla ana Great Britain. The
total assets are approximately 5000 ,00p
mainly first mortgage on real estate in
Texas, which at the time they were made
represented from 40 to so per cent of the
real value of the real estate taken as Sc
curly Aside from the capital stock the
entire direct liability is in the form of de
benture bonds and amounts to 81 800 900
There is also an indirect or contingent LA
bility on mortgage in the hands Of in
vostors to the amount oil about $3.50 900.
guaranteed by the company. Mr.. II. 4.
Nahler. the receiver. Is an expert IN the
loan business and was employed
by the company four years ago, when the
directors first apprehended danger, owing
to the character of some of our loans. Since
lany tnow four years. no loan made by
him has been forecosed and properties al |
ready in the care of The company have been |
so prudently handled that we are conf
dent his appointment is guarantee of in |
elligent. homes. and economical admins |
ration in the interest of creditors first, |
hen the stockholders The trust business |
y the company was small and the business
u that department having been kept sepa-
'ate from the company's general assets,
Will not be affected by the receivorship !
! lie real estate and rental department will |
re continued under tho direction of the
'resent manager of that department
The trust company holds a large block
VI securities OF the Texas Fair association.
" which Mr.. Irrelevant Is also president
y is believed. however that matters will
10 arranged so that the Fair association
will not he affected.