The Montgomery advertiser., 1904-02-03
TOTAL CAPITAL $4o,o 100000
Assets Said to Largely Exceed
 the Liabilities.
Application to Courts Made by Maryland Trust Company, Which Has Recently Had Financial
 Troubles of Its Own.

Houston. Tex, Feb. 2.-The Kirby Lum-s Der Company and the Houston Oil Com pany, two of the largest corporations in Texas. were yesterday placed in the halds of temporary receivers by the federal court at New Orleans. E. F. Bonner who is closely associated with John II. Kirby and N. W. Mcleod of St. Louiss were named as receivers for the former company, and Captain F. A. Reichardts cashier of the Planters and Mechanics National Bank of this city, and Thomas H. 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 Mary land Trust Company. When the order was entered at New Orleans Monday last by Federal Judge A. P. Mccormick, it is understood that the Kirby interests were present and insisted on being represented in the .receivership., At the instance of the applicant, the order was made 8 secret one for forty-eight hours, but 1t leaked out today and was later confirmed by Floyd McGowan, of the law firm of Dunman, Franklin and McGowan of San Francisco, who passed through Houston today en route from New Orleans MT. McGowan gave out a statement in part as follows:
 Purpose of Receiverships.
 Tt is quite evident that the receiver ships are merely for the purpose of hold- ing the properties of the two companies intact until an amIcable adjustment peFd- ing now can be brought about. I believe that this will be done before February F, which is the day set for final orders in the case. feel satisfied that there will be an adjustment and settlement of everything by that time and that no per- manent receiver will be appointed. The business of the two companies will pro- ceed as usual and no interes1s will be involved thereby.
 s-The receiverships will be hfVSght about through the appllcaalofi of the Maryland Trust, Company, holders of timber certi- flcates of the Kirby Lumber Company and guaranteed by the Houston oil Company on which interest was not paid when due. It is understood that the trust company Is itself in the hands of a receiver and 1t was on this account that that officer brought about tho application for- tenn porary receivers. He did not feel that he was authorized to make any. further ex- tensions, although everything indicated that $70O, 900 due the trust company would be paid within a few days.
 'T feel sure that every cent due will  of only temporary duration. feel also at liberty to state that MT. Kirbys in- dividual interests and his other invest- ments throughout the State are in no way affected
 The Companies Involved.
 The Kirby Lumber Company is. capi- talized at $10,OOO0OO, of which s, 5,OO00O0 is preferred stock, and $5.0OO.OO0 common
 Of the Houston Oil Company's capital stock of $30OOo.O0o. $10.0Oo.O00 is preferred and $2O.0O0OOO common stock.
 The property of the Kirby Lumber Company consists of eighteen lumber mills and mercantile stores, all in Texas; 142 miles of railroad, seven hundred cars, ffty-fve locomotives; 2lO,0O0 acres of pine land, logging outfits. tie and piling out fits. This company's inventory shows N.- 000.OO0 worth of lumber on hand. Its as- sets are claimed to be $12, 2,50O.0O0 in excess of liabilities.
 The Houston oil Company owns 100000 acres of pine land valued by experts at $3OO0O,0OO and oil property of enormous value. It controls a large part of the Corsicana oil field, the Sour Lake area and the Nacogdoches oil field.
 When the news of the receivership was announced here today. a run was made on the savings department of the Planters
 
 on the bank proper, where the deposits were much in excess of the withdrawals. The other banks of the city at once made tenders of assistance. but they were not accepted. The savings department was kept open until o'clock. for the accomo- dation of those wishing to withdraw their savings, but little business was done after p. m.. the scare having to a great extent subsided.
 Captain F. A. Reichardt, cashier of the bank and one of the receivers. was asked what the effect of the receivership would be on the local institution and said;
 ''The Houston oil Company does not owe this bank one cent nor does MT. Kirby owe the bank one cent. On the contrary he has some thousands of dol- lars to his credit.
 "The bank has taken in more money today than we have been called upon to pay out"