The news & observer., 1897-01-26
RECEIVERS APPOINTED
For the Southern Building and
Loan Association.
A BIG SENSATION
IT CARRIED ON A LARGE NORTH
CAROLINA BUSINESS.
LOSSES IN RALEIGH HEAVY
MIR. c. c. Mcdonald, Agent For
North Carolina, was Greatly Sur
prsed, Hopes 1t VIII Come
Out Alright.
Knoxville Sentinel.)

The news received here at an early
hour this morning that United States
Judge Clark had granted an Injunction
at Nashville late last night and appointed
). Il. Luttrell, of this city, temporary
receiver Of the Southern Building and
Loan Company, has been almost the sole
topic of conversation on the streets and
business offices to-day. The news cannot
be said to have been entirely unexpected,
i'll one sense, for since the recent decis-
ion of the Supreme Court in regard to
building and loan associations doing bus
iness In Tennessee, many suits have been
brought against all the companies doing
business here, and in two instances appli-
cations have been made to the local
courts for the appointment Of receivers,
these cases being those against the Saw
ings and Workmen's, of this city. The
Southern, however, while having it's
home office and headquarters in this city,
is national company, and, in fact one
of the largest in the world, doing busi-
ness in the majority of the Southern
States, with assets, according to the
last annual report, Of over $5,200,000.
The magnitude of the amount involved In
has caused the principal excitement in
local business circles as also the fact
that hundreds of persons in this city are
stockholders in the association.
The suit was brought in the United
States Court at Nashville by Mrs. Me-
linda johnson, resident of Indiana, who
has $4,000 worth of stock in the asso-
ciation. Mrs. Johnson, it appears became
worried about her investment, and decid-
ed to withdraw it. On making application
to withdraw her stock, according to the
rules OF the association, Mrs johnson
was informed that her application would
have to wait its regular turn for con
sideration, as such applications were only
acted upon in turn as received. After
waiting n considerable length of time
Nirs. Johnson became alarmed, thinking
that SO many like applications were prob
ably being made that by the time her APP
pIication was reached all the available
funds would have been drawn out, leay-
ing the association with no Immediately
available assets. She therefore at once
had the present suit brought
All sorts Of wild rumors were flying
over the city this morning regarding the
condition Of the association, but as mat
ter Of fact, it is learned that, while, like
all other building and loan associations,
the Southern has suffered heavy losses
BY the withdrawal Of stock and possibly
By the depreciation of real estate as well,
there is no necessity for alarm among the
stockholders at the present condition of
the company, as the assets are amply
sufficient TO cover all liabilities
very large number of applications
have been placed on file for the with
drawal of stock and it is said that the
officers and directors have been greatly
worried for more than six months over
the possible outcome. 1t is said also
that some such applications nave been
on file for a year without having been
acted upon, but this is denied by officers
OF the Association.
The amount OF such applications at
the present time is said to be in the neigh
borhood. of 100000. 1t is also said, on
the authority OF gentleman who should
be posted upon the value of the securities
of the Association that the actual value
of It's assets at present is not less than
from S2,500,000 to $3,00O,0OO.
Hearing that Attorneys Webb and Nc
Chung, OF this city, had applied for the
receiver in behalf of the complainant,
they were called upon and asked about
the case. They said in substance as fol-
lows: Yes, it is true that such n bill
was filed last Wednesday. The bill was
presented by us to Judge Clark and he
appointed Mr.. S. B. Luttrell and Judge
James G. Rose as temporary receivers
The complainant is Mrs. Lucinda III.
Johnson, of Indiana. She owns $4,000
of the stock. She files the bill in behalf
OF herself and all other stockholders of
the Association"
1T is rumored on the streets that the
bill was filed in the interest of the Asso-
cIation, and to head off certain expected
litigation against the Association. Is that
true| asked the reporter.
The bill you'd not have been filed if we
had not known that a suit was being pre-
pared against the Association that, If sue
cessful, wol:ld have been disastrous to
the rights of our client, Mrs. Johnson,
and all other stockholders in the Associa-
ton. Before filing the bill we consulted
with certain gentlemen v;tally interested
in the welfare of the Association and
they agreed with us in thinking that the
of all the stockholders could he
best protected by filing tie bill. The
Of the Association, as we un-
derstand. will have their annual meeting
on Monday next. AT that fine the entire
matter will be laid before rhcm. and an
earnest effort will be made to devise
means by which the aid OF the court may
be dispensed with and the Association
may continue its business until all its
series mature. IF this can be done we
have no doubt but that Mrs. Johnson viii
be willing to dismiss her bill. 1t was
not filed to hurt single stakeholder. It's
IContinued on 9th page.l