The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-04-07
CANNOT STAND GEORGIA LAW.
TWO MORE BUILDING AND LOAN
RECEIVER SHIPS.

National Railway and Atlanta Ma
tionnI Building and Loan Associa-
tions Placed in the Hands of Re
ceivers by Judge Pardee-Taxation
Under Recent supreme Court De-
cisiOn Too Great "a Burden-TOtal
Involved Is $4,000, 200.
Atlanta, April 6.-Two building and loan
associations passed into the hands of re-
ceivers here to-day, making three in as
many days.
The court procedure In each case was
the same-receivers being appointed by
Judge Don A. Pardee of the United
States Circuit Court for the home office,
while ancillary receivers were named in
the states in which the concerns did bus
mess
1t is claimed in each case that the ac-
ton taken was the result of mutual un-
derstanding, and the cause of the receiv-
ershps is the same-adverse decisions by
courts In the matter of taxation.
The National Railway Building and
Loan Association, OF which d. B. Stan
cliffe was general manager. was named in
an application to Judge Pardee last night
and the head of the concern was an
nounced as its receiver this morning.
Meanwhile instructions for the filing OF
anoiary bills in the states of Florida,
Louisiana, Texas, alabama and Missis-
sippi were sent by telegraph.
The assets and liabilities of the National
Railway Association are about $500, 900.
The application for receiver was made
by j. r. Bottom of Birmingham, and ths
grounds alleged are unfavorable rulings
by the courts OF various states. and es-
pecially that of the Georgia Supreme
Court in the matter of taxes. The appli-
cation was not resisted.
Atlanta National Next.
The Atlanta National Building and Loan
Associa tion of this city was given into
the hands of receivers this afternoon,
Judge Pardee naming George A. Speer
and Ligon johnson for the places. The
| assets are $500 600, and the receivers claim
that every dollar of indebtedness will be
paid in short time. The application I'm
this case was made by A. r. Dixon of
North Carolina, and Mrs. Mary McKin-
lock of Charleston. S. c.. Action looking
to the appointment of ancillary receivers
in nearly all of the Southern states has
been taken.
on Wednesday last, Judge Pardee named
receivers for the Southern Home Build
| ing and Loan Association, with liabilities
of about 100000. None of the associa-
! tions has as yet made a statement of It's
condition. The total assets involved In
the three receiverships, approximate ST.
O00,OOO
Cause of the Trouble.
In explaining the cause of the trouble
in the National Railway Building and
| Loan Association, Porter King, one of the
attorneys, said:
For one not familiar with the facts 10
| is impossible to appreciate how the sud-
den demand for 10000 of back taxes by
| the state and county, and the demand by
the city for back taxes also under de-
| csion lately rendered by the Supreme
Court, tended TO paralyze the business OF
| the association.
During the entire life OF this associa-
| ton. since 1891. the tax laws of Georgia
| have exempted It from taxes except upon
shares on which no loans were made, and
except upon real estate, which was held
unconstitutional by the Supreme Court.
thus holding that during all these years
taxes must be paid on all the debts due
the association by borrowers in all the
states where 1t did business, and also
holding that the licenses paid the several
Giles did not exempt It from city taxes
on the entire assets and Indebtedness
mot only was this claim made for back
taxes, but in future its taxes would be at
tne same rate ana on the same valuation.
making a total taxation OF about 41h per
cent on all its assets, and II was simply
impossible to live under such a burden"
Could Not stand the Strain.
Capt w. D. Ellis, attorney for the At
lanta National Association, said
1.-THE association was really in good
shape, but the demands for back taxes
from the city ana county, together with
the fact that a multiplication of suits were
threatened. made 1t appear impossible to
keep up the fight any longer That was
especially true on account of the. failure
of two other building and loan associations
and the impression naturally created in the
public mind that no national building and
loan association could stand the sewers
strain through which they were being
forced to pass"
Judge Pardee has granted orders on an
cillary bills. placing the co-receivers in
charge of the assets of the association in
the various Southern states.