The times. [volume] (Richmond, Va.) 1890-1903, 1902-03-01
[DIREC OR|S' He
COL lI|uBlAIN RE|PL Y
Vigorous Rejoinder to Petitioners
for Rel eiye r.


Dispatches yesterday from the South
advised OF the fac tha 20. bill had been
filed before Judge Simonton in the Unit
ed States Circuit Court at Charleston,
s. G., praying for the appointment of a
receiver for the Colum bian Building and
Loan Association, of this city, and that
similar ancillary bills had been filed by
minority stockholders in Georgia, Ala
bana, Maryland, Virginia, West vir-
gfnia. North Carolina, Florida, Louisiana
and Missouri. The receiver was asked
by Stephen Terry ct ais, on t1e ground
of general insolvency: In lie BE bill the
S20O, 600, with liabilities at the same fig
sure. May 9Th was set as the date for the
hearing of the case.
The Directors of the Association, con-
sisting OF @Messrs. j. b. Pace, j. D.#Pat-a
ten, T. VIM. Pemberton, w. S. Forbes,
IN. Cullingworth, 10. Lane Stern, and
j. !. Montague, have prepared state
ment for the stockholders, in which
they pronounce the allegations in the bill
filed false. They say IN part:
-Four of the members of this Associa-s
ton, residing in Atlanta, have filed a.
bill in the United States Circuit Court,
praying for an injunction against, and
a receiver for, the Association.
THE court has entered an order fixing
on May 9Th when 1t will hear why the
prayers Of the complainants should not
be granted
.All four Of the members who filed this
bill are borrowers from the Association
for the full amounts allowed under the
bylaws on their stock, and are indebted
to the Association at this time, and all
OF them are in default in their payments.
The bill filed charges that:
1.-THE officers and directors of said cor
poration have failed to make the annual
statement which they should have made
on December 81, 1901, and
That large amounts of investment
stock have been placed for withdrawal
since January 1, 1901, and that none Of the
Withdrawals have as yet been paid and
they have accumulated until now. the
sum necessary to be paid is so large as
to make it impossible for the association
to pay the same, and they state that
upon information and belief the amount
of stock filed for withdrawal amounts to
$50, COO, or other large sum.
..NIost of you know that the first OF
these statements is falsehood, Tor the
regular annual statement made in jan
uary, 1906, Showing fully the state Of
business to December 81, 1901. was dis
tributed, as has been done regularly since
the organization Of the association IN
1894 and, is now here repeated for your
information
1.-THE second Of the dzove allie
cations is absolutely false
ut is also q fact, known to many Of
you, that, although the bylaws provide
that stock filed for withdrawal may be
held thirty days before being paid off,
the Board Of Directors, acting within
their. authority under the bylaws, have
almost universally not required this to
be done, but have paid the withdrawal
value Of the stock upon application al
the instant.
Eve well understanding the danger Of
misfortune in consequence of the failures
which have overtaken: other associations,
have used every means within our pnwer
to safeguard the interests Of the share
holders, and with that end in view have
caused the assts and liabilities to be gone
Tover repeatedly under our most careful
scrutiny. and we now relterate that in
our honest opinion this Association is
absolutely solvent, and if let alone from
outside influence we believe that the
members will not lose one dollar.
when the facts herein stated and others
ot similar character were made known
10 counsel from Atlanta, representing the
parties who brought this suit, we asked
them to dismiss their suit, and they now
Rave this matter UNDER consideration;
but as the publication in the newspapers
have doubtless informed you that such
suits are pending, we deem it proper to
let you know everything that has hap
rened UP to the present time, and will
endeavor to keep you further Informed.
IF this suit and the ancilIary suits
which have been instituted in several Of
the States in which we do business are
rot dismissed, it is our purpose to ask
the court to rescind that order (Which
privilege is given us in the order), just
as soon as counsel car be heard to make
that motion, and we wish to assure the
stockholders that we shall leave nothing
Tndone FOR their protection according to
the best of our judgment. =