The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-12
SOUTHERN MUTUAL SOLvENCY.
COURTS TO WAIT ON THE STOCK
HOLDERS MEETING.

The Floridn Creditors OF the AsSoci-
alton Anxious Ia Have Its Assets
Throughout the Country Marshall
ed ana Divided FRO Rata Among
All the StockhOIdcrs-If the FIOrI-
diRns Have to Depend on the AS
sets In Their own state Alone
They VIII Fare Badly.
Atlanta, Ga. Feb. 1.-THE application
for receiver for the Southern Mutual
Building and Loan Association in the
United States court, came up for hearing
to-day before Judge W. T. Newman, but
after some prellminarios il was post
poned until next Wednesday in order to
give the attorneys time to finish the prepa-
ration of their papers. The attorneys for
the association filed their answer to the
bill brought by Mr.. Garner of Florida,
in which they deny that the association is
insolVent and incapable of further man
aging its own affairs without the inter
ference of the court, and the receiver
ship both in the federal courts and the
state court will be fought.
A meeting of the local stockholders of
the association. was held to-day, and res
olutions passed asking Judge John $.
Gambler of the state court, before whom
the case, comes up for hearing next Sat
urday, to allow II to so over without FUR
ther action until after the meeting of the
stockholders convention on the 18th. over
900 shares were represented at the meet
ing.
To-day the stockholders protective com
mittee, which was formed to
look after the interests OF the
stockholders issued a circular letter
to the stockholders, attached to which Is
a contract to be signed by such stoekhold-
ers as deposit their stock with the commit
tee. 1t is not likely that the affairs OF
the association will be cleared up any un-
til after the stockholders convention. II Is
believed that Judge Gambler will postpone
the hearing of the application for re-
ceiver until after that takes pace, and
that Judge Newman will also put off ac-
ton until the stockholders have an op-
pOrtunty of expressing their views as TO
the future of the association. Al the meet
ing of the Atlanta stockholders to-day an
effort was made to have Peter Clark Of
this city recommended to Judge Gambler as
permanent receiver, but 1t failed.
Jacksonville, Fla. Feb 1t-Capt. c. e.
Garner will leave tomorrow night for At
lanta TO take measures for the protection
of the Florida stockholders in the South
ern Mutual Building and Loan Associa-
ton, whose failure was recently chroni-
cled: He has power of attorney from
stockholders in Jacksonville, VINO have
paid in about $4,000. The assets in this
county, according to Capt Garner are not
over 5000. Large interests he says are
held in Tampa, Ocala, Orlando, Gaines
VILE, st. Augustine and other cities and
towns of the state. All in ALL Florida
shareholders are interested in the affairs
| of the Southern Mutual fully 100000
The assets in this state are very mea
! ger. In other states the assets are larger
| in proportion to the liabilities than they
| are i'm Florida, hence If each state where
! there are holdings of the company secures
| toe appointment of a receiver in that state
| the Florida stockholders will come out al
| the little end of the horn. On the Other
| shall have authority to aggregate the as
| all shareholders alike, the outlook for the
| holders of stock in Florida Is not so bad
| Capt. Garner has already moved in the
| direction of securing one receiver, having
| filed a bill with the clerk of the United
| States court in Atlanta applying for the
| appointment of a receiver of the com.
| paliy's assets, who shall have jurisdiction
| In all of the territory in which the com
pany has done business.
In his bill Capt. Garner charges the
| officers of the Southern Mutual with gross
| carelessness and misconduct. He says
| that the financial affairs of the association
| are in such "A shape that only experts can
| ascertain the exact condition lie charges
| also that the officers have been paid toe
| high salaries, and that the whole expense
| of the concern has been on a lavish scale
| and in conflict with the commercial rules
| governing income and expenditure. Capt
| Garner win be at the Kimball house, and
| saws if any other Florida stockholders de-
sire him to act for them. he will do so.