The age-herald., 1901-04-20
Stockholders Are Alarmed Over Recent Decisions ASK THE COURTS FOR RELIEF Concern Known as Continental Security Redemption Co. J. B. c0BBs APPOINTED RECEIVER Petition Was Filed by George A. 1iinn Et al. in United States Court
 and Was Granted By
 Judge Bruce.
]. B. coBBs APPOINTED RECEIVER

The Continental Security Redemption president. and whose principal office Is in Birmingham, was yesterday placed in the hands of receiver by Judge John Bruce of the United States Court at the instance of officers of the company who filed suit for that purpose. J. B. Cobbs of the Alabama National Bank was ap- pointed receiver and gave 5,0o0 band with the United States Fidelity and Guar anty Company as surity.
 The Continental Security Redemption Company some time ago absorbed the Southern Debenture Redemption Com pany of Delaware, the National Deben- ture Loan Company of Georgia, the Bir- mlngham Debenture Redemption Com pany, and the Columbia Investment Con- pany, both of Alabama, and Is one of the largest debenture concerns In the United States. It's assets are stated in the bill filed yesterday to be SIPS, ,92379 of which .ss is cash. It's liabilities are not stated, but it is known to have outstand- ing many thousands debenture bonds. | A recent ruling of the post office depart ment holding that certain classes of de- benture bonds could not be allowed the use of the mails, as they violated the lottery and fraud act.' and a recent de- cision made by the Supreme Court Of Ohio, holding that cerfain features of debenture bonds were against public policy and therefore unlawful, are given f1r ~Irt- wind up defendants business These causes said by complainants to have demoralized public confidence in deben- ture bonds and made 1t impossible for the defendant corporation to continue in business.
 Synopsis of the Bill.
 The suit as filed by George A. Blinn. Jr., V. s. Morgan and c. s. Hayden of Birmingham on behalf of themselves and all others who may care to come in the suit and share the expenses
 The bill set out that the petitioners are stockholderss and debenture holders own Ing 15o shares of the capital stock of the Continental Security Redemption Com pany and as such stockholders they bring. suit against said company the Southern Debenture Redemption Company. the Na- tonal Debenture Loan Company. the Bir- mingham Debenture Redemption Com pany and the Columbia Investment Com ,pany, all of which companies have been nmalsamated and consolidated under the name of the Continental Security Re- demption Company of New Jersey with headquarters at Trenton. but it's main business ofilce being located at BirmIng-. ham. t6
 That George A. Binn. Jr., owns $50, shares of the par value of s1o V. s. Mor-s gan 50 shares and c. S. Hayden 45o shares, and further' that they are officers and directors q said company. and are there fore advi15dand fully informed of it's condition.
 That said Continental Security Re- demption Company was organized to sell to any and all persons Its debenture con- tracts in different classes and denoni- nations and maturing at different periods: That up to recently said company had done a prosperous business and had of1- ces in Alabama, Virginia and Georgia, and had become known throughout the country as one of the leading invsst- ment companies in the United States
 That on December 5. 1900. the poso6166 department at Washington. through ifa assistant attorney Harrison J. Barrett. promulgated an opinion addressed to the Postmaster General in reference to .the use of the mails for the promotion of csr- tain so-called bond investment schemes,'sf and in said opinion said Barrett took the position that such companies should not be allowed the use of the mails because they were violating the lottery and fraud act"
 Disturbed Confidence.
 Complainants therefore charge that while they have the utmost faith in the prosperity and ultimate success of the plan of business in which they are en- gagged. yet the effect of this opinion sent broadcast over the land caused countless numbers of debenture bondholders to make instant and urgent demands upon the respondent threatening bankruptcy and receivership.
 Yet complainants managed to assuase the fears of It's investors and submitted to the postoffics department new contract of investment and obtained its approval on 1t in January. Confidence was restored and the future outlook for the company was bright.
 Compliments state that there are mum erous other companies throughout the United States. doing similar businsss. particularly in Ohio. A short while prioz to MT Barretts opinion the attorney zen erai of Ohio instituted q quo warranto proceeding against the Interstate sayinga Investment Company of Cincinnati, ask
 
 (Continued on Eighth Pags.)