The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-02-26
PRIESTS AS BANKERS.
Failure Of Catholic Savings In
stitution in Lawrence.
LIABILITIES OF OVER HALF A MIL
LION.

LIABILITIES OF OVER HALF A MIL
Good Priests but Very Poor Financiers.
LAWRENCE. Mass, Feb 24.-Seven suits
nave been entered in the Northern Essex Reg
istry of Deeds attaching all the real estate
owned by the Augustinian Society of Law
renee, Of which Rev. @. A. McEvery is Supe-
Tlor. The total amount of attachments is $27,
0OO and more will follow. These suits are to
recover money deposited with the savings in
stitution conducted by the Augustinians for
years. 1t has been the custom of Roman
Catholic priests in the city to receive deposits
from parishioneTs, issue books therefor. nav in
terest and assume all the functions of savings
banks. This was first done by Father ODon-
nell in the early days of the CITY, about 1846
and has been continued up to the present time
Inc rate OF interest paid has been large, aver
aging SIX per cent and as consequence the
deposits have been large. OF late deposits
nave Deen received by the Augustinian Socie-
~, aN, Wnlch was thus formed April s, 1870.
Ihomas Galberry, John Gilmore. Timothy
Donovan, William Harnett, Hector Pin, John
Riley Hugh Rafferty,, their associates and suc-
cessors. were made by the Massachusetts Leg
stature corporation in Lawrence, by the
name of the Augustinian Society," for the pur-
pose Of taking and boldiHg property not ex-
eRedsng 5000 000 for esior,r rt,oeee IN
renee and Andover, To this society large
amount of property was conveyed, among the
rest being most of the church propertv between
Bradford, Oak, White and Hampshire streets.
For some time no complaints were heard as TO
the savings bank department of the society.
but since Jan. 1881, when Rev. John p Gil
more. who had been head of the order here
lett the city suddenly on account, it is said, of
III health. and was succeeded by Rev. Mr. Re-
gan. there has been much trouble experienced
by depositors, many of whom had left the city,
in obtaining their money, and in several in
stances claims have been placed in the hands
of lawyers and national banks for collection,
Early in 1881 the society began selling real es-
tate, and since that time has disposed OF prop.
erty to the amount of $40, ,855, including two
sales by the st. Mary's Free Educational In.
stitute for Boys and Girls, an allied society,"
Besides this, for some time it has obtained
from the Essex Savings Bank by mortgage on
the new st. Mary's church, the parnchial resi-
dence and adjoining property 10000And from
the City Institution for Savings at Lowell S20.-
GOO which is secured by mortgage on the old st
Mary's church. The society has out CONNER
clai paper, about the renewal of which there
lately has been some delay.
Monday night meeting of depoStors was
held, notice OF it having been given in church
the previous day, and they were notified that
there was no money left, but that the society
would endeavor to pay depositors at the rate Of
$4,000 per year. The indebtedness is placed
at $500,0O0 to depositors and 100000 on mort
gage. The number of depositors is placed at
700, a majority OF them being poor female op-
eratives. Besides the mortgages already snok
en- of, there is a heavy one on the church of
the Immaculate Conception, which is conduct
cd by priests of the Augustinian Order and
there is also one on the church of St. Lawrence
for 10000 held by the Broadway Savings
BANK. The society have just transferred mort
cages held by them amounting to over $4,000
lt is generally believed that the trouble is not
of recent origin, but has been growing slowly
Tor years, each succeeding year plunging the
society deeper in debt. 1t is said that one of
the first priests in the city invested funds de-
posted with him in railroad stock. having
therefor $4,000, and after holding it for some
years its value had SO deprecated that he Wss
obliged to dispose of it for $1,000.
Considerable excitement exists among the
unfortunate de2ositors, OF whom there aIe two
distinct classes. One is composed mainly of
business men, one having $16,0O0 another
$4,000, another $4,000, while still another a
butcher in Methuen, has $4500 A statement
OF the financial condition is promised in a few
days, and a meeting of prominent wealthy
Roman Catholic gentlemen has been called for
Sunday evening" Meanwhile the anxious de-
positors continue to pour on attachments
The total Indebtedness of the Augnstinian
Society is $4,000, of which $430000 is due
depositors in their savings institution They
propose to pay the 700 deposirors $25 900 annu.
ally pro rata, without interest, and SUSPEND the
parochial schools which have been an exneY.sa
s1 $4,000. Great excitement prevails among
tae aepositors, who are principally poor house
girls and factory operatives. The church prop
erty is mortgaged for $4,000.
-Four additional attachments were placed to-
day on the property, making fourteen in ALL
Further investigation shows that the misfor.
tunes OF the society are due largely to injudic-
lous developments and Improvement of church
property. In the face Of an Indebtedness Of
$200.OO0, the construction of the church of St.
Mary was begun costing about $500 000, for
which bat S94 600 was collected. A few wears
ago St. Mary's old church was remodeled into
hall at a cost of $4,000. For the past 10 years
the parOchial schools were run at an expense Of
from $4,000 TO $4,000 annually. For humber
of years the society has paid interest on an in
debtedness of $260,000. 1t is claimed that
property recently sold here by the Augustine
ians was not disposed of in good faith, the cor
poration being insolvent at the time of sale.
IL is said the Augustinians own considerable
real estate at Lansingburg Watertown Me-
chanicsville, New York and at Philadelphia
and other parts of Pennsylvania, and that
some of the depositors have already instituted
suits in these States and caused attachments to
be made.
This society will probably be forced to 90
into insolvency. Many depositors wish re-
ceiver appointed to control the income of the
society from pastorates which averages $35 600
yearly.
LAWRENCE, Feb. %.
The Roman Catholic churches under control
of the Augustinian fathers, were crowded at
each service to-day, it being expected that the
priests would refer to the collapse of their saw
ing Institution. AT st. Mary's church, Rev. G.
E. McEyert of the superior American branch
Of the Augustenian order said he proposed
soon to give detailed statement of the Church
finances. The society would leave nothing un-
done to meet their obligations. He considered
the mortgages on the church property a slight
Inconvenience. The only matter for serious
consideration was the interests of depostors
He said the society's indebtedness was between
four and five hundred thousand dollars but
with the revenue from orders in the three
churches and two chapels in Lawrence and
Methuen, with extraordinary efforts he hoped
to meet the financial obligations in a few years
lie expressed the utmost confidence that the
Catholics OF Lawrence would subscribe ac-
cording to their means to free the church from
Indebtedness. Two years ago he collected in
New York, Pennsylvania and Boston, 1911 900
which was applied to the decrease of the debt.
The society would leave nothing undone to
meet the pressing demands and would see that
the immediate poor should not suffer. He
urged his bearers to be patient and the society
would pay them all.
Rev. Father Corr Of the Immaculate Con-
ception, told his people the society would not
repudiate the debts but pay dollar for dollar
Have patience and contribute as Catholics and
they would get their money in a short time
Rev. Father Ryan of St. Lawrence church,
gave the same advice and said there would be
dividend paid depositors yearly and perhaps
oftener. The debts was not incurred by the
present heads of the parish's but the responsi-
bilities will be met.
LAWRENCE, Feb 25.-Prominent Roman
Catholic citIzens met privately tonight to COZ
slider the best means to extricate the Augustin-
ian Society from its Indebtedness. AT late
hour it was decided to appoint committee of
fifteen to have full control OF the finances and
revenues of all Catholic churches in the city
except st. Patrick's g. A subscription was start
ed and $4,000 subscribed at the meeting. Sub
scriptionS will be canvassed for large fair 10
be held, The committee assume the duties
only with the understanding that depositors in
the savings institution will not force the Au-
gustinian Socity into insolvency. ST. Mary's
parochial school will be closed, thus saving
$4,000 annually. AS this puts 1900 more chill
dren into the public schools it is understood
that an effort will be made to induce the city
government to rent the St. Mary's school
buildings and employ Sisters of Charity to con-
duct them.
An Alabama Claim
PHILADELPHIA, Feb. a. Testimony was
taken today ny Alabama Claims Commissioner
Nlckerson 10 the claim of the schooner Sarah