The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-24
SMITHS SENSATIONAL STEAL:
RECEIVER FOR HIS BANKING COW
PAxY APPLIED FOR

PAA1 ARELAED FUh-
Dmcers of the Instftotion Declare
that the Company-s Assets tre
worth SIO0.0DO and IL owes Not
over s5.0OO-The Application FOR a
Receiver Therefore Declared
wholly Unwarranted-Tbe Petit
tIoner Accuses Directors Of the
Company Of Buying Land Fer $50
OO0 and Unloading IL on the Com
pany For sG0.0po-
Atlanta Ca Fs5. @-Trere vas ar
otaer sensational Development i1 c1rre--
ion win t1e defa-cztlol n Otis smith.
the cashier o. Ire Ce9rgia Security ard
Bankluz Company. TINS Afternoon u
was in tne shape - an Application for
q receiver fo- tast company and in the
BIZ. zh5e1 VS. set for hearing ~ Ju-ge
LunaaIu Tor next SATURDAY. some start
Ing Allegations are made Attorney clyde
l. Brooks Glcd taa bin rep-esa nting
Charles A sisslon and :. D Rznbo.
Ft0ckholders On the Georgia Security and
Banking Company They aiisEe that the
Company Is not only irsolveut on account
q the 6efaIeatI01s Of Cashier smith. 5ut
zhat II mas teen uisms1sged b. other
officers - vel az he
The company was formerly a buil6i1g
snd loan association. and vas changed 70
ilE present plsn Eve years ago. Tire stock
f0lGers Who went in wnen IL was started
as q building and loan association were
gwen pail-up stock in t1e new concern
Tor what they rad paid In. which fur
2-ls1ea the capital Tor its operations
The nu0ss sensational allegation j. that
Jams W. E1zlish. J-. John Murphy
and ?. = Paine. t1ree % the directors
* tne com rany. bought q tract o. land
70 ~ developed Dy tae company. known
a. Western Heights. This tract be5pz the
main properly Of the company. for sEfell
- ira5vi5uals snd then turned around
end sold KISS same land within few days
after they had bought 81 70 tne COMPANY.
r Thic1 they were tire controlling Cirec-
tsrs. for 1soss. II Is alleged that this
frsuss rti0n was without rhe knowledge
oF consent Of the stoczrol SeTs. Bho had
10 idea the directors Individually were
making such ~spec. r. is slso further
EnoWn i1at since tire formation ~ the
company. 10 divideuds have ever been de-
cisre6. and also that one-hslf q the prop
eFry comprising Western Heights. the de-
Neiopment q whicn into a SUBURBAN town
ste was the business Of the company. has
sales have ever been made TO the stock
holders.
Il IT, charged that the directors and OfI-
Gers not orlY allowed the company 70 b.
Enisms mayed by Cashier Smith. hut that
they also rented expensive Offices with
esEY co1ches. electric fans. telephones.
etc. and used these 0f7ces for their phi
Tats business though the funds Of the
company were used 70 pay for them.
The company IS alleged 70 be totally in
eolveut and Attorney Brooks ~ confident
thar the receivers asked for viii be ap-
poinfed when the hearing occurs on Sat
rgrdsy
Officers OF me company. after beng serv-
81 with a copy Of the DiI for a receiver.
announced that II would BE- fought vigor-
oDslv. The institution, they declare. is
TerfeotIy solvent owing not over 500.
ard having assets worth 5000.
In addition 70 fighting the application
for a receiver. Attorney Fielder and Direc-
tor James ". English. Jr.. this afternoon
declared that just a. soon as the recefver-
snip matter Is disposed 81 they viii file a
SUN for damages against both tbs parties
10 the biu and the attorneys who brought
81 for them On the ground that there is no
JUST presumption Of insolvency against the
Institution and that therefore the applica-
lion vas not brought In good faith
Otis Smith. the defsBlting cashier
uoon committed 70 the Fulton
county jail. where he will remain for sew
eral days. pending a fun investigs ton OF
his accounts. II has transpired that one
q mis- methods Of raising money az CASH
Ter Of the Georgia Security and Banking
Company vas % issue bogus certificates
q stock. and b. Is not known how many Of
these there are outstanding. ~ he had
charge Of the stock book and could write
one ont whenever he wanted TO- Very re-
Gently he issued certificate for s. 90 and
hyp0thecated IL with the Atlanta National
Bank for a loan Of 500. $40 OF which he
has paid back. The issuance OF these Ger
1lleates is. Of course, q forgery. smith
also forged the Enforcement Of several To-
cal firms 70 checks which had been signed
~ James ". English. Jr., and used the
money secured on them. This adds the
crime o. forgery 70 that or ernbezzlement
10 which be vii have 70 answer
To-day Smiths attorney. Mr.. Colvilie, T.
D. Fielder and J. ". English visited the
l-evaen house on Peachtree street, where
Smith had been boarding. for the purpose
Of looking over MS private papers. on
some o. the prisoners memoranda were
found entries 0f eIpeuse items which gave
some Indication 81 tire direction in which
his cash had gone There were pencil
notes o. dinner partses. fhsater parties
balls hack hire. bs01c1stF fepeIr-y and
swell suVpers. along WIKI tailor bills 100
numerous 70 rneEtion- He hs5 sovvea the
wind and is nov resr-1g tire WhlrlWind
Among other t1l1EE were severaI large
packets o. Dlllet cCzI fE91l society bellies
and debufsntes. T--sae were taken charge
Of By one q TIE Eelflszae-. AMI s. IS said
each letter ret1rue1 ~ rte falr writer in
order to save fUt1rs srrszEr1ents.
SOUTHERN INITIAL ASSETS.