The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-02
SOUTHERN LOAN MAY SURVIVE
STOCKHOLDERS TO FIGHT THE RE
OWNERSHIP.

Judge Clark PostpOnes the Appoint
mcnt OF Permanent Receiver.
objection Entered Against the Sc
sccrion of the Compnny's President
a. Receiver and Meeting of Jhe
Stockholders to BE Held in 80
Days.
Knoxville, Tenn, Feb. Judge c. D.
Clarke of the United States circuit court
had special term of court here to-day
TO hear arguments in the various build
ing and loan receiycrship cases The
case of the Southern, which the largest
of all the associations, was first called.
The application made to the court 10 APP
point S b. Luttrell of this city and Judge
Rose Of AIorristown was bitterly opposed.
William H. Russell, counsel for the
eastern stockholders and William G. Nes-
ley. a Chattanooga attorney, appeared in
opposition. They claimed that the stock
holders had not been given fair opportun-
i1 to discover whether a receivership
was necessary and that in any event Mr..
Luttreu, who has been president and re-
sponsible for the management Of the as
sociation. should not be receiver.
After conference Of the counsel and
stockholders present 1t was decided to
hold a stockholders meeting at Knox
vile in thirty days Pending such mee..
ing Judge Clarke postponed action in the
matter Of a permanent receiver, but plain
IL minated that il there was any oppo-
sition tc Mr. Luttrelps appointment 1t
would not be made permanent. The stock
holders hope to prevent the receiVersh!p
being made permanent, and an effort will
De made on the part of outside stockhold-
ers to take the association out of the
courts and continue it.
In the case of the Saving Building and
Loan Association. w. w Woodruff, its
president was made permanent receiver
and Instructed to wind up the business
at once.
In the case of the Knoxville Building
anl Loan. the decision of the court was
postponed for a week, when objections
to a permanent receiver will be heard.
Macon, Ca, Feb. 1.-The Macon branch
of the Southern Building and Loan Aso-
citation was placed in the hands of a re-
ceiver by Judge Feiton to-day on the ap-
plicaton of stockholders in this city. The
Headquarters of the association are locat-
ed at Knoxville, Tenn. The trouble is the
outcome of the recent decision Of the SUI
preme court of Tennessee, which declares
that when a loan association takes the
property of a stakeholder who has default
ed in payment, it must pay him back all
the money he has paid into the associa-
ton The Southern has done large BUSH
ness here. but its patrons are dissatisfied
with its management owing TO the fact
that when stock natures continuation of
the monthly payments is demanded. 1t is
thought all the stockholders in Macon will
join in this bill and make a strong fight
against the never-ending payments to
loan associations.
Dallas, Tex, Feb. ii. o. Gill and others
to-day made application before Judge
Smith for receivership for the Southern
Building and Loan Association of Knox
vile, Tenn, on the ground of the COM
pany's Insolvency as shown by the appoint
ment Of receivers in the states of Tennes-
see, Georgia and Arkansas. The plant
ifs represent the Texas stockholders.
Judge Smith appointed c. e. Bird and j.
] orchard receivers. The association is
one Of the largest in the world its es-
timated assets being something like
s., 100000 1t is said that the company S
loans made in Texas alone amount to
Ss00OOO.