Adair Bankruptcy

Were a bed slat yanked from under a napping Southern gentleman, he would be scarcely more annoyed than were Southern businessmen last week when Adair Realty & Trust Co. and Adair & Senter Co. (its construction subsidiary) went into bankruptcy in them--have been the warp of Atlanta's community fabric. George Atlanta.

The Adairs--three generations of Washington Adair was conductor of the first railroad train that entered the city (1845). When Union troops burned the town in the Civil War, he was already doing a real estate business there; and he, as much as anyone else, helped the rebuilding. His sons-- able, active Forrest and able, quiet George--continued to trade lots. At one time or another these men and their sons have handled practically every piece of real estate in Atlanta. Forrest Adair has won national repute among Masons for beginning, at Atlanta, the movement for Masonic hospitals for crippled children. He is a Past Illustrious Potentate of the Shrine (social organizations of 32DEG Masons).

The bankruptcies were caused by suits against Adair Realty & Trust Ca. for $915.45 and against Adair & Senter for $23,221.18. They could not pay their debts promptly, for their own money was frozen in real estate mortgages and in construction projects.* So Adair investors will probably lose about 25% of their money. Said Forrest Adair last week, in rueful summary of the real estate mortgage bond business: "Each separate issue of bonds is made by a separate company, and secured by a separate mortgage, and as to 75% or more of these bonds, the mortgage securing the same is ample and will be secure for every holder of the individual bond on that property. . . ."

--At present they are building a large hotel at Knoxville, Tenn. Their activities in Florida, notably at Sarasota, cost them much.