The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-02-03
RECEIVERS FOR
KIRBY LUMBER CO,
Two Big Texas Corporations in
Trouble
WILL PAY OFF EVERY CENT
Two Concerns Have Combined Capital
Stock of $4,000, 00o-The Maryland
Trust Co. Made Application for
Temporary Receivership.

Houston. Tex, February 2.-The Kirby
Lumber company and the Houston Oil
company, two of the largest corporations
In Texas were yesterday placed in the
hands of a temporary received by the fed
eral court at New Orleans.
b. F. Bonner, who is closely associated
with John II. Kirby and N. w. Mcleod of
st. Louis, were named as receivers for
the former company, and Capt. f. A.
Reichardt cashier of the Planters and
Mechanics National Bank of this city,
and Thomas II. Franklin of San Antonio,
Texas, were appointed receivers for the
Houston Oil company.
The application for temporary receivers
was made at the instance of the Maryland
Trust company. When the order was en-
tered at New Orleans on Monday last by
Federal Judge A. p. Mccormick, it is
understood that the Kirby interests were
present and insisted on being represented.
Al the instance of the applicant, the or
der was made secret one for forty-eight
hours, but 1t leaked out today, and was
later confirmed by Floyd MCGOWAN of the
law firm of Franklin & MCGOWAN of San
Antonio. who passed through Houston to-
day en- route from New Orleans. Mr..
MCGOWAN gave out a statement in part
as follows:
Pending Amicable Adjustment.
1t is quite evident that the receiverships
are merely for the purpose of holding the
properties of the two companies intact UNI
til an amicable adjustment pending nego-
tiatfons can be brought about. I believe
that this will be done before February
II, which is the day set for final orders in
the case I feel satisfied that there will
be an adjustment and settlement of
everything by that time, and that no
permanent receiver will be appointed. The
business of the two companies will pro-
coed as usual and no other interests
will be involved thereby.
The receiverships were brought about
through the application of the Maryland
Trust company, holders of timber certif-
Gates of the Kirby Lumber company. and
guaranteed by the Houston Oil company
upon which interest was not paid when
due. 1t is understood that the trust com
pany is itself in the hands of a receiver.
and 1t was on this account that that Of
ficer brought about the application for
temporary receivers. He did not feel that
he was authorized to make any further
extensions, although everything indicated
that 100000 due the trust company would
be paid within few days.
Every Gem viii Be Paid.
IT feel sure that every cent due will
be paid and that the receivership will be
of only temporary duration. feel also
at liberty to state that Mr. Kirby's in
dividual interests and his other invest
ments throughout the state are in no
way affected"
The Kirby Lumber company is capital
lied at sl0000,000 of which SIS, 100000 is
preferred stock and $5,OO0,0OO common.
OF the Houston Oil companys capital
stock of $S0,000.000, $10000,0O0 is preferred
and s20,0O00O0 common stock
The property of the Kirby Lumber com.
pany consists of eighteen lumber mills and
mercantile stores all in Texas; 142 miles
of railroad, 700 cars, So locomotives, 24,000
acres of pine land, logging outfits, tie and
piling outfits. This companys inventory
shows s1,0O0,O00 worth of lumber on hand
It's assets are claimed to be $4,000 900 in
excess of liabilities.
The Houston Oil company owns 1000
600 acres of pine land, valued by experts
at s30,000000, and oil property of enormous
value. 1t controls large part of the
Corscana oil field. the Sour Lake area
and the Nacogdoches oil field.
Run on Savings Bank.
When the news of the receivership was
announced here today, a run was made
on the savings department of the Plant
ers' and Mechanical bank, but not on the
bank proper. where the deposits were
much in excess of the Withdrawals. The
other banks of the city at once made ten
ders of assistance but they were not ac-
cepted. The savings department was
kept open until o'clock for the occom-
mediation of those wishing to withdraw
their savings, but little business was
done after D. m. the scare having to
great extent subsidized.
Captain r. A. Reichardt, cashier of the
bank and one of the receivers, was ask
ed what the effect of the receivership
would be upon the local institution and
said:
1.-The Houston Oil company does not
owe this bank one cent. nor does Mr..
Kirby owe the bank one cent On the
contrary he has some thousands of dol
lars to his credit.
1.-THE bank has taken in more money
today than we have been called upon to
pay out"