The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-07

main Unpaid-The Charge That the
COmpany's SaInry List liz TOO High
Denied.
Atlanta, Ca, Feb. 6.-Upon the appica-
ton of Roby Robinson of this city and
several other stockholders, representing
an aggregate of So shares, the Southern
Mutual Building and Loan Association,
with stock scattered all over the south
amounting to a million dollars, and more,
was placed in the hands OF a receiver to-
day.
Judge j. S. Chandler of DeKalb superior
court heard the application and appointed
as the receiver Judge j. A. Anderson. The
hearing for a permanent receiver will take
place on Feb. %. The Offices of the COM
pany in the Equitable building were closed
and all officers and agents restrained from
interfering with the assets in any way.
The trouble of the company, the officers
| declare, is in a measure the result of the
failure of the Southern Building and Loan
Association of Knoxville, the largest con-
| cern in the world, which was recently put
in the hands of a receiver Building and
loan stockholders have become panic
stricken and are making a run on the
companies with withdrawal demands. 1t
is feared that other associations here will
be crippled by reason of this uneasy feel
ing and the troubles of the Southern Mu-
tual. The officers of this company are:
William c. Hale, president; Fl. l.. Atwa-
ter, vice president; II. p. Williams, secre-
tary; f. c. Fraser, assistant secretary;
l.. j. Laird, superintendent of agencies;
r. NJ. Farrar, treasurer; Ellis q Gray gen
eral counsel. The directors are William
A. Wright, controller general; w. b. Bur
roughs II. G. Wright and A. j. Orme.
A prospectus OF the association shows
that 1t has 81, 10000 of assets that Is loan
the treasurer of the state holds all the
mortgages of the association, which are
held by him in trust for the stockholders.
The bill for receiver alleges that the
association is insoivent, and Is unable to
meet current Withdrawals Of stock. In
the past six or eight months, IL is alleged,
drawals have been filed amounting to more
than 100000, which the company has been
unable to meet. The amount of cash on
hand, the bill charges Is small. The funds
are invested in real estate, from which
money is realized slowly, and that de-
mands for Withdrawals are accumulating
every day. The demand for Withdrawals
in Tennessee, the petitioners say, has
caused a judicial decision that has placed
a majority Of the building and loan asso-
Citations In that state in the hands of re-
ceivers. This fact, they claim, Will pro-
duce an increase in applications for with
draWals in this state, and that it will be
impossible to meet the Withdrawals that
will come into this association. IL is
claimed that the bills payable of the as
ISOLATION amount to $4,000, one-half OF
which is due, and that they have no funds
with which TO pay this Indebtedness.
The stock Of this association. it is al
legged was estimated to ature in seven
years. that seven and a half years have
elapsed and that the officers of the com
pany have created no fund with which to
pay this matured stock. In addition they
claim that the business Of this association
has decreased very greNly in the past
few months. IL Is charged that the ex-
penses of the associa tion are excessive in
comparison with the volume of business
The salaries of its officers. 1t is claimed
in the bill, are excessive, especially in
ed instead Of increased. The bill alleges
that the liabilities of the association
amount to the immense sum of 81 100000
the largest portion of which is due to
stockholders, the entire amount of which
is invested in real estate They allege
that large amount of loans on real es-
tate has been lost I'm making foreclosures
In addition to the 100000 of applications
for Withdrawals in the past six or eight
months that have not been paid IL Is al
legged that 100000 has been paid out in
that time on Withdrawals. Should the as
sOciation continue to pay those applying
for Withdrawals In the order in which they
come they claim that nothing will be left
with which to pay those who have not
applied.
Manager lsdlIu AIt IOlOWl0R
statement about the company's affairs,
"As soon as the legal status is definite.
ly determined we Will ask for a stock
holders convention to make plans for the
future OF the association. In case this
assOciation Is permitted to continue In the
regular course of business and kept out
az me courts, there Is no reason why the
money Invested Is not absolutely safe as
the Southern Mutual Benefit and Loan As
soclation owes very little money, except
to its stockholders. They are the sole
owners Of the business, and we see no rea-
eon why the temporary receiver should
not be dismissed and the members al
lowed 10 conduct their own business In
their own way The stock for which with
drawaf applications have been made IL
the Oldest stock I'm the association, and
the company would be glad TO have the
money 10 retire all these at the book
value. but as all our assets, amounting to
over 81 900, 600, are loaned on real estate
nortgages. and as the borrowers are per.
mitted to pay back the principal and in
terest IN monthly installments the re-
ceipts OF the association are limited. Un-
der our bylaws and In accordance with
the accommodation OF the examining
Committee at the last meeting the asso-
ciatlon cannot be required TO pay on
Withdrawals more than half the monthly