The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-09
Accused Of Borrowing Too Much
for His Own Use.
DIRECTORS ALSO DENOUNCED.
The Crash ASCribed TO Their Neglect
Of Duty.

They Are Called Down on the Ground
That They Failed TO Keep Proper
Iy Informed of the Associations
Affairs, Require the Proper Secur-
ity and Keep Its Expenses PropOr-
toned to Its IncOme-The ORer of
the Columbus Association to BE
Laid Before Meeting of the
Stockholders.
Atlanta, Ga. Feb. S.-The management
| of the Southern Mutual Building and
Loan Association, which was placed in
the hands of a receiver last Saturday, is
| attacked in a sensational bill fled this af-
| ternoon by w. e. Jervey, a stockholder,
through his attorneys Mayson & Hin.
1t is charged that w. q. Hale, as secre-
tary of the association, withdrew on
shares bought by and for him large sums
of money from the said association with
| large profit thereon, and the petitioner
| charges that these transactions were in
| violation of his duty as an officer and det-
| rimental to said association. The petit
toner prays that an accounting may be
| had between the association and Hale,
and that judgment may be had against
Hale for the profits made on the trans
action. 1t is further alleged that Hale
procured advances from the association
on property controlled by him ana on his
| account to the detriment of the stock
holders, and the petition prays that an
accounting be had on account of the ad-
| Vances.
Mr.. Jervey charges that the present con-
dition of affairs has been brought about
by the gross neglect of the directors, to-
| wit: William c. Hale, II. L. Atwater, H.
| B. Williams, L. j. Laird, w. A. Wright,
| w. b. Burroughs and H. c. Wright, and
| asks that they may be made parties de-
PENDANTS in the proceedings and held to
answer judgment.
The petitioner further charges that the
directors have by gross neglect permitted
| the affairs of the association to become
| involved and confused, and the associa-
| tion brought to its present insolvency by
a failure on their part to keep informed
of it's affairs, require the security speci-
fed in the bylaws of said association, and
to keep the expenses proportioned to its
| income.
1t is further charged that Hale has
| drawn large sums from said association
in salaries which its affairs do not war
| rant, and it is asked that judgment may
he had against him therefore. Also that
the directors have in the last few years
drawn salaries from the association, which
its affairs did not warrant, and he prays
that Judgment may be against them.
The statement of the officers of the as
sociation in answer to the charges as 20
extravag CANT salaries shows that President
Hale received $50 month, the same
amount as was given to the directory ana
that the secretary and general manager
received $50 per month each.
agreement
reached between the Southern Mu-
tuhl and Interstate Building ana
the officers Of which yesterday proposed
to take the assets Of the Southern and IS
sue stock certificates therefor 10 the
stockholders of the southern IL Is un-
derstoOd that a stockholders convention
will be called this week, and TINS matter
and other propositions looking 10 set-
tlement of the troubles will then be passed
4 stockholders protective committee has
been formed in connection with the At
lanta association. The committee Is com
posed of Paul komare, first vice presl-
dent of the Atlanta National Bank; Col.
W. A. Hemphill. president of the Atlanta
Trust and Banking Company, and DR..
r. ID. Spalding, president Of the Cram
lng-Spaiding Company. These gentle
men have cOnscnted to act In the ca
pacity named at the solicitation OF a num-
Der of shareholders. There Will be col-
tract under which the shareholders will
deposit their stock with this committee.
1t provides explicitly that the costs, ex-
penses and fees shall not exceed a given
amount, which Is less than each indivi1-
ual shareholder would have TO pay II no
united action Were taken. Blanks are
now being prepared 70 be used when a
shareholder deposits stock with the COM
mittee.
Ocala, Fla. Feb. S.-The citizens Of
Ocala have again been hard hit financially
bv the failure of the Southern Mutual
Building and Loan Association OF Atlanta
Ga. Next to the home company this as
sociation did a larger business In Ocala
than any other, and it's failure will be Sc
verely felt by the Ocala stockholders.
Can't n. G. Wright until a few months
ago cashier Of the Merchants National
ors and through him large business was
built up for this company. Albert Wright
Is now busy interviewing the different
stockholders OF this city, with a view OF
being appointed receiver to look after their
interests here, and as he Is the only ap-
plicant, no doubt he VIII receive the ap-
pointment.
Montgomery. Ala, Feb. son appllca-
ton OF solicitors for stockholders and
creditors In Alabama, a receiver was to-
day appointed by Judge Lapsley OF the
Admission city court for all the property
In Alabama OF the Southern Mutual Build
ing and Loan Association Of Georgia.
St. Augustine, Fla, Feb. S.-The col
lapse OF the Southern Mutual Building and
Loan Association OF Atlanta, Ca, works
great injury to twenty-nine persons hold
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