Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-04-07
THREE RECEIVERS NAMED.
FOR AS MANY GEORGIA RI1rr.D-
ING AND LOAN ASSOCIATIONS.
(RN TalonrnrI

Oft AS MANY GEORGIA BUILD
ING AND LOAN ASSOCIATIONS.
(By Telegraph to virslnlan-P llot.J
Atlanta. Ga, April 6.-Two building
and loan associations passed into the
hands Of receivers to-day, making three
in as many days. The court procedure
In each case was the same-recelvers
being appointed by Judge Don A. Par
dee. OF the United States Circuit Court,
Tor the home office. while ancillary re-
ceivers were named in the States in
winch the concern did business. 1t Is
Claimed in each case that the action
taken was the result of mutual under
standing, and the cause of the receiver
shlps the same-adverse decisions by
courts in the matter of taxation.
The National Railway Building and
Loan Association, of which d. B. STAN
cliife was general manager. was named
In an application to Judge Pardee last
night. and the head of the concern was
announced as its receiver this morning.
Meanwhile instructions for the filing of
anclllary bills in the States of Florida.
louisiana. Texas, Alabama and Mis-
Slsslppi were sent by telegraph
me assets and liabilities OF the Ma
tional Railway Association are about
100000 The application for the receiv-
ership was made by ]. Il. Bottom, of
Birmingham. and the grounds alleged
are unfavorable rulings by the courts
OF various States. and especially that
of the Georgia Supreme Court in the
matter of taxes. The application was
not resisted.
The Atlanta National Building and
Loan Association, of this city. was
afternoon, Judge Pardee naming George
A. Spear and Lyon Johnson for the
places. The assets are a half million
dollars. and the receivers claim that
every dollar of indebtedness will be
paid in a short time. The application
in this case was made by a. f.. Dixon,
of North Carolina. and Mrs. Mary Nc
kinlock, of Charleston. S. C. Action
looking to the appointment OF auxiliary
receivers in nearly all of the Southern
States was taken.
On Wednesday last Judge Pardee
named receivers for the Southern Home
Building and Loan Association with IL
abilities OF about $1.000,0 900. None of
the associations has yet made a report
of their conditions. The total assets
involved in the three receiverships ap-
proximate two million dollars
In explaining the cause for the trou-
BILE in the National Railway Building
and Loan Association. Hon. Porter
King, one of the attorneys, said:
For one not familiar with the facts
1t Is impossible to appreciate how the
sudden demand for $4,000 of back
taxes by the State and county and the
demand by the city for back taxes al
SO under a decision lately rendered by
the Supreme Court, tended to paralyze
the business of the associations.
During the entire life of this asso-
citation, since 1884, the tax laws OF
Georgia have exempted it from taxes,
except upon shares on which no loans
were made, and except upon the real
estate, which was held unconstitution-
II nv tl,a I>oI
that during all these years taxes must
be paid on all the debts due the asso-
citation by borrowers in all the States
where 1t did business, and also holding
that the licenses paid the several cities
did not exempt it from city taxes on
the entire assets and Indebtedness.
Not only was the claim made for
back taxes, but In future its taxes
would be at the same rate and on the
same valuation. making n. total taxa
ton of about AZ per cent. on all its
assets. and it was simply impossible to
live under such burden"
Captain w. D. Ellis, attorney for the
Atlanta National Association, said:
"The association was really In good
shape, but the demands for back taxes
| from the city and county. with the
fact that a multiplication of suits were
| threa tened, made Ii apparently lmpos-
| sbie 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 as
| ISOLATION could stand the severe strain
| through which they were being forced
to pass"
| Judge Pardee has granted orders on
ancillary bills. placing the co-receivers
in charge of the assets of the associa-
ton in the various Southern States.