The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-25
SHORTAGE IN ITS SECURITIES.
A NEW DEVELOPMENT IN "HE
SOUTHERN MUTUAL CRASH.

The Report of the Expert Accountant
Leaves $4,000 in Cash and $780,
900 in Securities to BE Accounted
For-Prcsident Hale May BE Able
to Explain the Matter on His Re
turn From Iown-The StOckhOld-
ers' Meeting To-day.
Atlanta. Ca, Feb. 24-The convention
of the stockholders of the Southern Mu-
tuaI Building and Loan Association viii
be held here tomorrow. A large number
of stockholders and their representatives,
arrived to-day. and several conferences
were held between them, for the purpose
of outlining plans for the adoption OF the
convention tomorrow. NJ. A. O'Byrne
of Savannah was chairman of one of the
meetings composed of the out-of-town
stockholders.
There is a clash on between the state
and federal courts, as to which shall con-
troll the securities of the company, which
are now in the hands of the state treas
urer. Yesterday, as stated in these dis
patches. Judge Newman of the federal
court issued an order enjoining State
Treasurer Speer from turning over any oil
the deeds and mortgages deposited with
the state to any other parties.
This morning Walter f. Jervey through
his attorneys, petitioned the superior
court to order Treasurer Speer to turn
over the property of the Southern Mutual
Building and Loan Association, held in
trust by him, to the receiver Of the com
pany. Judge Lumpkin granted the order
and cited William J. Speer treasurer OF
the state of Georgia, to appear before him
on Saturday. Feb. p, to show cause why
he should not turn over the assets in his
possession to the receiver in compliance
with the petition of Mr.. Jervey.
The petition sets forth that under the
laws of the state the association was re-
ouired to deposit with the treasurer 70
per cent of the amount of all the Sc
curities received by it, the treasurer re-
ceiVing the same as state trustee and
holding them for the stockholders. 1t fur
Their sets forth that he has 1891 900 of
such securities in his possession, and to
better protect the interests OF the stock
holders prays that they may be brought
within relief
Unless the stockholders succeed in TAX
ing the whole case out of the courts,
will be a lively fight between the two
courts for control.
Another rather sensa tional development
IN the case to-day was in the preliminary
trial balance furnished to Receiver An
derson by Prof b. f. Moore, the expert
accountant. who has been at work on the
books of the company under the direction
of the receiver. This statement shows
that there is an apparent shortage of $70,-
0O0 in cash and $3.50 in the securities
of the association. 1t is believed that the
apparent shortage in securities will be
reduced. and possibly offset by withdraw
ais and repayment of loans, but so far
no reason for the shortage of the cash
has been found
President Haze left Atlanta last week for
the purpose of securing the return of $110,-
GOO of Southern Mutual securities hypoth-
ecated with the Iowa Life Insurance Com
pany, but has not been heard from for sew
eral days. though expected home yester-
day. His trip was after a conference with
Receiver Anderson, who insisted on the re-
turn of these securities. When he left he
stated that he would be back in time to at
tend the stockholders meeting. The re-
ceiver did not know of the apparent short
age till a trial balance was presented to
him to-day by the expert, Prof. Moore,
who is examining the books. BY this il
appeared that there should be $l65 600 more
securities than have been found or report
ed. The statement also indicates that
there should be about $4,000 in cash de-
posted in bank. There are no such de-
posits. The largest deposit is that OF $40,
600 in the State Savings Bank, and this is
supposed to be offset for about half the
amount by outstanding checks. There is
also a deposit of $1,000 in the Fourth Ma
tional Bank. Other amounts leave more
than $50, 600 unaccounted for.
Receiver Anderson has had no opportu-
nifty to ask an explanation of Mr.. Hale
as he did not know of the discrepancy un-
til to-day
The securities so far found or reported
are $332, 600 deposited with Treasurer Speer
$4,000 with the Iowa Life Insurance Com.
pany, $4,000 with the Hale Fairly Com
pany, and $4,000 with T. b. Fielder.