The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-28
SOUTHERN MUTUAL STRUGGL 6
ANDERSON AND O'BYRNE APPOINT
ED AS RECEIVERS.

HntiOn Usually Paid for One-A
Hard Fight Made TO Keep the So
vannRh Man on the List-The
Stockholders Split Up Into Fac
tiOns-,Iudge Lumpkin Looks Upon
the Association ms UnQuestiOnR-
bly, InsOlvcnt.
Atlanta, Ga, Feb. N-Judge ]. II. Lump
kin, in the superior court. to-day over
ruled the motion made by the attorneys
for the Southern Mutual Building and
Loan Association to have the hearing on
the Robinson bill for u permanent receiv-
er postponed After the hearing had been
concluded the court ordered that the re-
ceivership be made permanent, and then
there was a hard fight between the fac
tions as to whom the permanent receiver
should be. 1t ended in the appointment of
Judge James A. Anderson of Atlanta, the
temporary receiv n. and Hon. M. A.
O'Byrne of Savannah. the newly elected
president of the association. A fight was
made against Mr.. O'Byrne on the ground
that co-recelvership would entail much
more expense, and further that his resi-
dence being in Savannah would complicate
the conduct of the business by the court.
In the order as finally granted, however,
il was set forth that the compensation TO
be allowed the two receivers shall be the
same as would have been allowed to
single receiver The two receivers will
have to divide the fee that would have
gone to one man. But for the Insertion of
| this condition the effort to have core
| ceivership would probably have been de-
feated, and the Savannah man left out
| The association, since it became in
| volVed, has developed several factions
among the stockholders. AT first Il was
| the Atlanta stockholders against all out
| of-town stockholders Then four or flve
| different factions developed, and to-day
| when the court announced that he would
| hear nominations for the permanent le-
| ceiver there were number of gentle
| men put up by the different factions.
| There were. in addition to those named,
! A. l.. Waldo of Atlanta, Peter II. Clark
| of Atlanta and George r. Dessausure of
| Atlanta Some wanted Mr.. O'Byrne with
| out Judge Anderson, and some wanted
| Ju6ge Anderson without Mr.. OByrne.
The directors wrangled among them
selves nearly all last night over who
should be co-receiver. Some of them and
| some of the stockholders appeared in
court to-day did not want either Mr.. An
| derson or Mr.. O'Byrne. They contended
| that the resolutions passed by the stock
| holders convention contemplated that
! the receiver should be an expert in the
| building and loan business. and not in any
| sense a mere professional man. Mr.
/ O'Byrne was put forward as the repre-
sentative of the stockholders, the attors
neys for the association placing him in
nomination. They declared that the
! stockholders had a right to be represented
in the management and the stockholders
wanted Mr.. O'Byrne.
One faction, led by w. p. Hill of this
! city, as attorney, made an earnest pro-
test against a double receivership and
| called upon the court to set about the re-
! form which the people of the state were
demanding in the matter Of receiverships,
| so that It could not be said that after the
receivers and lawyers got through there
| would be nothing left for the stockholders,
whose money was paying them
Judge Hines, representing stockholders.
also appealed TO the court TO relieve the
legal profession of the odlum now attach
ing to it on account Of the administra-
tion of receivership trusts. One receiver,
| he declared was sufficient.
Other lawyers argued that the fact that
| Mr.. OByrne lived in Savannah, and
would have to sacrifice his private busi-
ness to look after the affairs of the as
sociation here would be a good claim for
extra compensation, and would lay the
foundation for extravagant fees.
Receiver Anderson to-day presented to
the court the statement of the company s
condition as 1t appears from the work
of the expert, who is still at work on the
books. This statement is substantially the
same as that given out to the stockhold-
ers when they met here on Thursday II
ed beyond doubt IL also includes the
statement that the treasurer n.
M. Farrar, has not accounted
for $4,000 of the reserve fund
which should be in his hands. This state
ment at the stockholders meeting caused
the report that Treasurer Farrar Is short
in his accounts to that amount, and al
though Mr.. Farrar denies the report, the
repetition of it is the statement made IN
the court to-day, caused more comment
on that line.
Judge Lumpkln, in refusing 70 postpone
the hearing of the case, said that the
court had had twenty-one days IN which
TO see whether 1t was solvent or not, and
the showing Of insolvency was so conclu-
slve that he did not think that if the
time were extended indefinitely that a
showing of solvency could be made.
Attorneys Ellis and Gray, who repre-
sented the association as its regualr coun-
sci, did not resist the appointment of the
receivers, and they admitted that that
was the inevitable result of the condition
in which the association appears to be.
w. c. Hale, the missing ex-presldent OF
the association, is still the subject Of much
sensational report. II was rumored to.
day that he had sailed for Europe or some
other foreign shore, and is a fugitive from
justice.
Under the last telegram purporting to
have been received here from him he is
due to return 10 Atlanta on Monday. II
he does not show up then his flight will be
accepted as a fact The Iowa Life Insur-
ance Company claims that 1t has bought
the $4,000 of securities now In Its hands
and has paid about $4,000 for them, al
though the company has never received
a cent OF the money.
The receiver win at once bring proceed
ings to have these securities returned "a
the association. as we'll as the other secu-
rites which II Is alleged Hale fraudulent
ly hypotheeated