The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-11-13
SOUTHERN HOMES s0LVENCY.
JUDGE PARDEE REFUSES TO GRANT
RECEIVERSHIP.

The Assets Claimed to BE Nearly
100000 in Excess of the Liabilities.
The Allegation That the Company
Is InsOIvcnt Declared Absurd - 4
Great Decrease In the Number of
Applications for Withdrawal
Claimed A Synopsis of the
Charges of the Petitioners.
Atlanta, Ca, Nov. 12.-The Southern
Home Building and Loan Association
made its answer in the federal court to-
day to the application for a receiver,
which was made 10 Judge Don Pardee on
Wednesday by Alabama stockholders of
the company
In its answer. which is signed for the
company by President G. A. Cabaniss, all
of the allegations of the bill for receiver
are denied and the claim made that the
association is in a prosperous condition.
The answer went explicitly into the de-
tails of the associations affairs, and show
ed that its assets above all liabilities
amount to nearly $4,000. This is the profit
which has been made and is held for the
benefit of the shareholders
The alleged claim that the association
be absurd. In view of the large amounts
Of assets over the liabilities. It is stated
that within the past six months, 1924, IL. SO
has been paid out to Withdrawing men,
bers, and it is claimed that the remaining
members of the association have profited
by this, as the liabilities have thus been
largely diminished. The total Indebtedness
large diminished. The total indebtedness
~ q 10 IN ba itc Iial
to the stockholders, which is 1899, 9O7. AZ,
while the total assets are s., 1903, 313. 20,
showing an excess of assets over liabill-
ties of s469, 1851.
1t was also shown that there had been
a great decrease in the number of with
drawal applications. and that many of the
applications previously made were with
drawn because after making an investiga-
ton, the stockholders were satisfied as to
the defendants financial condition.
Aftidavits were introduced from the Of
ficers and others to show the association
was not insolvent, and from many stock
holders to show they were satisfied with
the past and present management.
Judge Pardee this afternoon refused to
grant the receivership.
The petition for receiver charges that
the Southern Home Building and Loan AS
ISOLATION, with its principal office in At
lanta at the corner of Broad and Ala
now practically in voluntary liquidation.
It charges that the liquidation is being
conducted at the enormous expense to the
association of 81, 800 per month and that
the association is now being maintained
by force pump methods and that there
is really no substantial basis to ats exist
ence
The bill shows forty grounds upon which
the receiver is asked for and is quite
lengthy consisting of many pages of close
~ typewriter manuscript. 1t alleges that
more than 800 members have filed appH-
cations for Withdrawals and that the APP
plications are now on file in the office of
the association and have never been salts
fled by payment. These Withdrawals, says
the petition, represent about $150,00O and it
claims that the association cannot meet
its obligations along this line. These with
drawals il Is claimed, have been going on
sfnce last February.
1t is claimed that the association has
lost large amount of money on account
of the depreciation of values in real estate
in Texas and other far western and south
ern states The bill states that so great
has been the depreciation that the associa-
ton has been afraid to foreclose it's mort
cages and force sale, as the sale would
disclose the weak condition of the associa-
ton and would have alarmed it's stock
holders.
1t is claimed that the last statement is
sued by the association shows that the
sum of 100000 has been charged TO the
account of profit and loss since the state
ment before the last was issued, which
! covered the fiscal year of the association.
! 1t is further claimed that the association
for the past year has practically made no
! loans on real estate or other securities
other than its own stock, in this way cut
| ting off the means of profits by the accru-
| ing of interest.
! The bill charges that the association is
doing little, II any, business, and that the
! in getting up funds with which to keep the
association going and with which TO pay
some of the most urgent Withdrawals.
1t is claimed that in order to pay off
some of the Withdrawals and expenses
it became necessary for the officers to in
wade the loan fund during the year ending
Sept. Is.
The assessment is shown to be 60 cents
en- each share of stock, 10 cents of which
was relegated to the expense account The
petition shows that last year the expenses
ate up the expense account proper and
| that the loan fund was then entered into
and a portion of that fund was used for
| expenses.
Since Sept. Il, the ending of the past
fiscal year, 1t is claimed that the officers
have abandoned the 10 per cent expense
assessment and have been taking the ex>
penses out of the profits entirely. The
plan of the Southern Home Building and
Loan Association shows that a share of
stock, all payments being kept up, should
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