The Savannah morning news., 1900-06-10
is H0PELESSLY INS0LVENT.
AUnIToR HANMOND'S REPORT on
THERN MUTUAL.

Sho'rs the Association -oSt About
S35O.CC1 From the Time of Its Or
EHn!zation to the appointment OF
til HcceiN Observation-Disclosures Who
Fsied Notices of Withdrawal. Not
EiatitIed TO Any Prcfcrence-othcr
Decisions in the Case.
Atanta, June 9.-Audtor T. 4. Ham
mond filed his report today IN TIE South
ern Ilutual Building and Loan Associa-
,ion fase. o. which Judge A. Audc--on
OF ttfs city and ". \. O Byrne Of Sav1n-
nan RE co-reoeivers.
on. OF the most important qles ions o
law decided by Ml Hammond Uss -that
the stoekholders who had nIeI 10 ICES Of
Withdrawal should not be allowed auy
preference over other stockholders. He
held mat Withdrawing members we're not
emit oil 70 rank as creditors.
An.r,her imrortanJ point was the hxins
OF to liability of the borrowers. MI
Ham nond rendered judgment I'm favor o
the association and asainS. the Bates
FARLEY Savings Bank for $1,000. IL was
charged 10y the receivers that The bank
had operated with the American Building
ana Ican Association TO acquire stock o.
me Southern Mutual. TIE stock whica
was acquired vas alleged 70 have been
matured before its time through an agree
ment with W u. Hala. The auditor held
the transa lions between the bank aud
the Southern Mutual were Illegal, bur he
does no, charge collision between the Off
GERS Of the bank and Hale.
~
ing and Loan Association, the auditor
found in favor Of that concern, giving fl
the benefit. he said of grave douot in
his mind The report shows tie association
lost q out $4,000 from the time OF its or
ganizaiion TO the appointment Of the re-
ceivers 10 February, 1891 The following is
an extract from the report:
Figures From the Books.
From the books md that the total
amount OF credits. thar Is The amount
paid by the stockholders TO the essocia-
tion. from It's organization TO Feb o. 1897,
was Sl.S0olgo, that the debts, including ex-
penses and the amour, paid to withdraw
ais was S92S, oi7.o5, and that The tcial
amount that should have been m the
treasury represented by notes. bonds mort
date OF the appointment of the receiver
was $S7l ,9i2.94
Il find that the total amount OF assets
as shown on tement, exhi)it No. >. as
taken from The books. said assets being
taken their face value and not Including
certain disputed claims was S559.G2S. thar
the total Liabilities were $50. 1898. making
net shortage Of $231 1865, and that the
estimated total loss. as shown by exhibit
No. from the organization Of The usso-
citation TO the appointment of receiver.
was SAG 400 81"
The total amount paid in by stock
holders was found 70 De $751; 400 90 Thu
number OF shares outstanding at the tim
OF the receiyershp, was % 655, three
fourshs other than those fled for wiol-
drawai. Under the associations rule Of
settlement, there would nave been due on
these shares 81. 1910 o. According 10
the company estimate the amount due
members, who had filed applications for
Withdrawal, would have been Sl61, Jj7. 81
If all the Stockholders had Withdrawn
their claims on the date of the appoint
ment Of receiver, il would have been
81, $50 664 81
Mr. Hammond found the association
was hopelessly insolvent. The auditor
held the Withdrawing members were no,
creditors. and were nor entitled to any
preference.