The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-02-26
CHURCH BANK FAILURE.
Collapse of the Augustinian Society.
OF Lawrence, Mass.
Poor Servant Girls the Chief Sufferers-The
Money Spent in Church and School
improvements.

BosToH, Feb. 24.-Seven suits have been in.
stituted against the Augustinian Society OF
the Roman Catholic organization formed ia
Lawrence in 1870 to receive deposits OF
parishioners of the church, Attachments
have been issued for $27, 900, and more will
likely follow. The society was formed by
priests, and subsequently chartered by the
Legislature, with authority to hold property
not exceeding 100000. Large amounts Of
real estate, including church property, have
been conveyed to the society. Since 1881,
when Father Regain took charge of its
affairs, depositors have had difficulty in
securing their deposits, and several
claims have been entered against it. He
has been selling real estate for some time
past and has been large borrower of money
from banks. At meeting of the depositora
the latter were notified that no money was
left but the society would endenvor to pay
them at the rate of S24, 900 yearly. The in.
debtedness is placed at $780, 900 to depositors
and 100000 to mortgage holders. The de.
positors number 700, majority being poor
female mill operatives. ossroE
1t is generally believed this is the culmin.
alton of the several years of gradual depre-
citation of the affairs of the society. Fathe.
O'Donnell, one of the first controllers, in
vested largely in railroad stock, resulting in
heavy losses. In addition to the poorer de.
positors there are several heavy deposits oil
from SIG, 900 down to S., 600. Much excite.
ment exists and q statement of the societys
condition will probably be made at a meet
ing of prominent Catholics on Sunday.
Anxious depositors continue to pour in at
tachments.
Later reports say four additional attach
ments were placed on the property of the
Augustinian Society, making fourteen in all.
Further Investigation showed the misfortunes
of the society are due largely to the inju.
dicious development and improvement OF
church property in the face of an indebted
ness OF 100000. The construction of the
church of St Mary was begun, costing about
$500, 900, and only $84, 900 collected. a few
years ago St. Mary's old church was re-
nodded into a hall at cost of $4,000. For
the past ten years the parochial schools were
an expense of from $4,000 TO $4,000 annu-
ally. For number of years the society paid
interest on $3.50, 000
1t is also claimed that the property re-
Gently sold by the Augustinans was not dis.
posed of in good faith, the corporation being
insolvent at the time. 1t is said the Angus
tinians own considerable real estate at Lam
sngburg WATERFOWL, Mechanicsville, New
York. and in Philadelphia and other parts OF
Pennsylvania and that some depositors have
already entered suits in these States, causing
attachments to be. made The society will
probably be forced into insolvency. Many
depositors wish receiver appointed to con-
troll the income of the society from pastorates,
which average $35, 900 yearly. 1t is expected
the priests will allude tomorrow to the legal
proceedings by parishioners.
The Herald says of the Augustinian So
ciety that its actual debt in round numbers
is $4,000. Deducting mortgages to $li0-
900, there remains due depositors 1920 900.
When the society was first formed Catholics
began to deposit their savings with Father
ODonnell. His death occurred in 1881, and
deficit of $150,000 is said to have existed
then. The interest had always been large,
equaling or exceeding 6 per cent, and as the
deposits had not generally been well invested
the result had been that considerable por-
ton of the deposits had been paid out in
interest But by far the greatest cause is
found in the fact that in 1872, the society
then having a debt of $150,000, it began a
new church, adding to the debt $500, 000 and
using the money of the depositors to meet
this amount with the exception of $4,000,
which was raised by subscription.
In addition to the burden enumerated,
there is another of large magnitude. For
twenty-five years the society has maintained
parochial schools at an estimated expense of
$4,000, including $4,000 expended in re-
modelling the old church for school-rooms.
To add to our load, the society five or six
years ago accepted charge OF the ST. Law
renee church and the Church of the Immac-
clate Conception, which had considerable
debts .,.t ..
The depositors and the public generally are
convinced that this result has come about
through bad management and is in no sense
the result of roguery. The clergymen now
in charge make full exhibit of the condi-
ton of the institution, and admit that the
money of deposltors is gone They claim
that by reducing the expenses and strength
ening the revenues of the church they can
eventually pay off the debt in full; but the
question of interest must for years to come
be held in allegiance.
The Priests Promise Payment in Time.
LAWRENCE Mass, Feb. 25.-The Roman
Catholic churches under the control of the
Augustinian Fathers were crowded at each
service to-day, as it was expected the priests
would refer to the collapse of their savings
institution. At st, Mary's Church, Rev. G.
E. McEvery, superior of the American
branch of the Augustinian order, said he
proposed soon to give a complete statement
of the church finances, and that the society
would leave nothing undone to meet its OBJ
legations He considered the mortgage on
the church property comparatively slight
Inconvenience. The only matter for serious
consideration was the interests of the de-
postors He said the society's Indebtedness
was between 100000 and 100000, but
with the receipts from the orders in three
churches and two chapels in Lawrence
and Methaeh, with extraordinary efforts,
he hoped to meet the financial obliga-
tions in a few years. He expressed
the utmost confidence that the Catholics OF
Lawrence would subscribe according to their
means to free their church from indebted
ness. Two years ago he collected in New
York Pennsylvania and Boston $1l 900,
which he applied to decrease the debt. The
society would leave nothing undone to meet
pressing demands, and would not see the inn
mediate poor suffer, but urged his hearers to
be patient and the society would pay them