The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-01-24
ATLANTA NATIONAL IN COURT.
LAWYER JOHNSTON PETITIONS FOR
RECEIN ERSHIP.


ing and Loan Association Is InSOl-
vent, and Can Not Pay It's stock
hoIders-Chargcs Too Much Has
Been Paid out in Withdrawals.
Secretary Goldsmith Says Johns
ton WANTS Revenge.
Atlanta. Jan. pa bill has been filed M
Fulton Superior Court asking for a re-
ceiver for the Atlanta National Building
and Loan Association, the allegations IN
the bill, which comes UP for a hearing
next Thursday before Judge j. IL. Lump
kin. being almost as sensational as in the
failure Of the Southern Mutual Association
two years ago.
The Atlanta National is big concern
doing business all over the South, and its
troubles viii cause widespread anxiety
Malcolm Johnston, a director Of the as
ISOLATION. and general counsel for d since
its organization, is the petitioner in the
bin for receiver.
II is charged 10y Mr.. Johnston that the
association has been badly managed and
that it is now hopelessly insolvent; mat
there has been paid out within the past
two years 500. 900 in Withdrawals. and that
shares TO the amount of $4,000 are now IN
for withdrawal II is charged that II the
last amount is paid out there will be
practically nothing left for the remaining
stockholders.
The officers of the company are: e. {.
Atkins, president; w. W. Draper, vice
president; c. S. Kingsberry, treasurer; j..
w. Goldsmith. secretary. All are wen
hr me They.
with Mr. Johnston. constitute the board
of directors Mr.. Johnston has, however,
sent in his resignation as the general at
torney of the association.
The officers of the company deny that 1t
is insolvent. and claim that it has assets
worth $500 900. The Liabilities are estimated
at 100000 and according to these hgufes
they claim TO have a surplus above their
Indebtedness of 800 900.
Johnston Could Not Agree.
The petition of Mr.. Johnston recites that
for some time past he has been unable 10
agree with the other officers of the com
pany, because of their alleged violation
of the bylaws. He states he has not
brought suit before. as the stockholders
were 20 hold their annual meeting on Jan.
16, and ne hoped at that meeting some
remedy would be adopted for the condl-
ton of the associations affairs.
Mr.. Johnston alleges that changes in the
bylaws were made at the last annual
meeting, such as TO utterly destroy the
plan on which the stockholders went into
the association and their rights as mem
hers. and put the whole business at the
mercy of the directors.
1t is alleged that the association is in
solvent, and that il is unable to pay back
to the stockholders even the principal
amount of what they have paid into the
loan fund. 1t is charged that the associ-
alton has made bad loans all over the
which are not worth more than
80 cents on the dollar of the face value
It is alleged that for loans amounting TO
500. 600, which were advanced on real es-
tate, property has been received, which
is worth not more than $4,000
Too Much Money Paid Out.
The charges made that in violation OF
bylaws there has been paid out during
the past two years for withdrawals over
$4,000 which is more than six times the
amount authorize by The bylaws. It is
claimed that in this manner the bulk of
valuable assets have been used up and
that the present stockholders can have
the hope Of getting but little on their
shares.
There are now represented to be pend
ing S120 600 of claims for withdrawal. and
it is claimed that IL these are paid there
would be practically nothing left to the
stockholders remaining in the association.
Mr. Johnston further charges that the
association has never earned any profits.
but despite that fact the directors have
paid out very large sums as profits
The directors are alleged to have been
careless in making loans and in the con-
duct of other business. They are charged
with having allowed a lot of insolvent
loans to be put upon the association.
Mr.. Johnston states that with the pa
pers which have recently been put into
his hands for the purpose of beginning
foreclosure proceedings, there would be
more than one-third of the entire number
of loans made by the associa ton in liti-
cation. The company is said to have now
more than 100 suits pending, and the col
lection of many of them. ii is alleged,
would be defeated by the usury laws of
various states where the loans have been
placed.
Done for Revenge, 1t Is Claimed.
Secretary Goldsmith, for the company,
this afternoon made the following state
ment showing the alleged animus of the
application of Johnston:
1T is case of persecution for the sake
of revenge. Johnston was until January
general counsel of the Atlanta National
annual meeting of the directors, he was
left out of the employ of the company be-
cause of his Incidence and gross neglect
of duty
HE says there are loans that are far
behind. ] admit this. but it is because
Johnston would not perform has duty and
would not collect these loans, as il was
his duty to do. The minutes of the COM
pany show time and again that Johnston
was urged to perform his duty, and day
after day he was getting his bread and
butter from the association, and now
without a word he sticks a knife in the
company in the dark
The association is perfectly solvent
and is in perfect condition. The associa-
tion's assets far exceed the liabilities
There is nothing 70 fear, and the stock
holders can rest assured that orery dol
lars worth of their stock will be matured.
They VIII not lose a njckel-not penny
and we will show why this bin was filed
and why Johnston was not elected gen
erai counsel"
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