The age-herald., 1898-07-01
RECEIVER NAMED
 FOR ELYTON co. 9he Corporation That Twelve Years
 Ago Paid 320 PER CENT. DIVIDENDS F. N. Billing, Of Montgomery, is tho
 Receiver Named. RESULT OF SUITS FILED IN JANUARY Former President J. K. Mcdonald to Remain in Charge-A History of This Alladin-
 Like Company In It's
 Pamy Days.
RESULT OF SUITS FILED IN JANUARY

Chancellor Thomas Cobbs yesterday ap- pointed F. M. Billings, of Montgomery, receiver of the Elyton company, the suc- cessors of the famous Elyton Land com pany, on the petition of Thomas J. Sem mes, of New Orleans, and H. C. Thomp- kins, of Montgomery
 Ten or twelve years ago the Elyton Land company was a synonym of all that was wealthy, and the fabulous dividends 1t paid and the enormous premiums which its stock commanded are still the wonder or the last quarter century. The dividends at one time amounted to 320e per cent, while some of it's s10O shares of stock have been known to sell for $4,1OO
 History of the Downfall
 The history of the present unfortunate condition of the company is comparatively short. In 1888 the company had over $S,-- 100000 of notes which they considered per- fectly good. Of these, they set aside s2,- 100000 and issued this amount in bonds with the notes as security. These bonds were distributed among the stockholders as dividends. The mistake, one of the officers said last night, was that the bonds
 
 notes themselves.
 In a few years when the bottom dropped out of the Birmingham boom, these notes became uncollectable and the bonds for which the notes were security were cor respondingly worthless. Over half mill lion of these bonds were paid, but the series of financial depressions in late years has made redemption of the remainder im- possible.
 Suits on the Bonds
 The immediate cause of the companays going into a receivers hands was the suits filed by Thomas J. Semmes, of New Orleans, and others last January in the chancery court of Jefferson county. The suit is based on six of these unexchanged dividend trust bonds, which matured Janu- ary l. In order to settle the suit to the best interests of all parties, Chancellor Cobbs yesterday appointed Q received, as stated above.
 J. K. Mcdonald, the former president will continue in charge of the affairs of the company under the direction of the receiver. It will be remembered that the company originally owned 40 900 acres of the land in Jones' Valley on which the whole of Birmingham is built. The company still owns large share of this property, and the proceeds from the sales of this land together with the rental obtained from the 200 or more houses which the company owns constitutes it's principal income. Out side of the big bond debt mentioned the company owes only small amount for money borrowed to pay interest and cur rent expenses.
 President J. K Mcdonald talked at length on the affairs of the company last night.
 ''The Elyton company" said he, "feels that it Is due to its creditors as well as to its shareholders and management that frank and full statement of facts be given to the public at this time.
 "The conditions against which the com- pany has struggled to maintain its integrity and the circumstances leading up to the litigation which has resulted in the ap- pontment of receiver are not of recent origin but date back to the original issue of $2 400, 900 of ten-year per cent dividend trust bonds by the Elyton Land company in 1SSS These bonds were Secured by a like amount of real estate notes taken for the purchase money of and secured by liens and mortgages upon unimproved property, which had been sold al greatly inflated or boom values. Up to and including 1890 the company bought up and cancelled $6O4 GOO of these bonds and up to 1894 paid the in- terest on the remainder out of collections from trust fund notes, but at that time 1t became apparent that the remainder of the trust fund notes were largely uncollectabe in money and that the company would be compelled to take back a large part of the property sold and hence would not be able to meet tho payment of its bonds at ma turity on January I, 1898.
 "It was then, in 1894, that the Elyton company was organized. purchasing the assets and assuming the liabilities of the Elyton Land company and funding the div idend trust bonds still outstanding, amount ing to $1 5000, by an issue of thirty-five year 5 per cent. bonds, secured by a first mortgage upon the entire assets of the company. This action was taken primarily in the interest of the creditors of the conn pany, the shareholders voluntarily agree Ing that no dividends should ever be paid upon their stock until after the payment of the entire bonded debt of the company, and was entirely satisfactory to the stock holders of the Elyton Land company and the holders of the dividend trust bonds, with few exceptions, and these bonds out standing, except SIPS, ,000, were promptly ex-