The Magnolia gazette., 1899-06-10
IN HANDS OF RECEIVER.
NEW SOUTH BUILDING AND LOAN
ASSOCIATION.
Adverse Decisions of Courts in
Other States Said to Be the
Cause Of Trouble.

CA's represented ny OeucSEes
Blair C Denege, the affairs OF
the New South Building and
Loan Association have been plac-
ed under the control of a receiver
and Johnston Armstrong of this
city, says the New Orleans Times
Democrat, has been appointed
receiver by the concurring order
of Judge Dor A. Pardee, circuit
judge, and Judge Charles Par
iange, district judge for the
eastern district of Louisiana.
The application for the receiv-
er was not based on any charges
of mismanagement on the part of
the officers or directors of the as
sociation, and it does not appear
that the association has met with
any business reverses. The bill
of complaint alleges that the bus
mess of the association was large
and extended into the neighbor-
ing states of Mississippi, Alaba-
ma, Georgia and Florida; and
that its affairs were prosperous
until interfered with by recent
adverse decisions by the supreme
courts of Alabama and Missis-
sippi, constituting the contracts Of
homestead associations with citi-
zens of those states in such way
as to give stock subscribers and
borrowers in Alabama and Mis-
sissippi decided advantage over
fellow-members of the associa-
ton whose courts construe the
law differently. The bill alleges
that the effect of those decisions
will be to involve the association,
whose business in Mississippi and
Alabama has been very extern
sive, in ruinous and expensive
litigation, and to give to members
of the association in those states
more than they are entitled to
under the contract of member
ship; and that the treasury Of the
association will be so depleted in
paying to stock subscribers in
Alabama and Mississippi what
the courts of those states are
likely to hold they are entitled to
that the association will not be
able to meet its obligations to
other stock subscribers.
In it's answer the defendant as
aociation admits the material
averments9 Of the bill, and AYERS
that the construction of home-
stead contracts by the supreme
courts of Alabama and Missis-
sippi has mad such disastrous
effect upon its business that it be-
lieves it would be fairer to all its
stockholders that its business
should be wound up and its as.
sets equitably distributed among
its stockholders, by the interyen-
ton and under the control Of a
court Of equity, than to subject
itself and its stockholders to a
multiplicity Of suits and to a de-
termination of their rights by
different courts with different
views of rights and obligations
under the same contract of mem
bership.
The following is an extract
from the order appointing the re-
ceiver:
"That Johnston Armstrong be
and he is hereby appointed re-
ceiver of the New South Building
and Loan Association Of New
Orleans, La, defendant herein,
conditioned on his executing q
bond, with good and solvent Sc
curity in the sum of $50, 600 for
faithful discharge of his duties
as receiver; with power and au-
thority at once to take charge,
possession and control of all the
assets, credits and property. real,
personal and mixed, of said as
sociation, wherever situated, and
of all papers, books, chosen in
action and every sort Of property
belonging to said association,
and to hold the same subject to
the further orders Of this court to
the end that all the affairs. con-
Germs and business of said asso-
citation may be liquidated, ad-
justed and wound up under the
supervision of the court; and
said receiver is hereby authorized
and empowered to obtain posses
sion of the assets Of said associa-
ton of every kind and descrip-
ton wherever the same may be
found, and to sue for the same.