New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-02-25
BANK MIS1NANAGElENT BYPRIESTS
FAILURE OF THE AUGUsTINIAN SOCIETY.

FAILURE OF THE AUGUSTINIAN SOCIETY.
ABOUT 700 rooR DEPosIToRs LOSE HALF A
MILLION DOLLARS.
LAWRENCE, Mass, Feb. 24.-Seven suits have
been instituted against the Augustinian Society, u
Roman Catholic organization formed here in 1870
to receive the deposits of the Pensioners of the
Church Attachments have been issued for the sum
of $4,000, and more are likely to follow. The
society was formed BY the 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 from time TO time. Since
1881, when Father Regain took cha &c Of its affairs
deposltors have had difficulty in securing deposits.
and several claims have been entered against it. 1t
has been ling real estate for some time past ana
has been largo borrower of money from banks.
At meeting OF depositors they were informed that
no money was left in bank, but that the society
would endeayor to pay them at the rate of $240OO
a year.
The Indebtedness is placed at 100000 to deposit
ors and $500, 900 10 NOR gage holders | he deposit
Ors number 700, majority of them being poor
female mill operatives. 1t is generally believed
tina this is the elimination of several years oil
gradual depreciation of the affairs OF the society.
Father ODonnell, who controlled the society for
some years before it incorporated, invested
largely IN railroad stock resulting in heavy losses.
In addition to the poorer deposors, there are sew
eral heavy deposits from $4,000 down to $4,000.
Much excitement exists, and statement of the
societys condition will probably be made at meet
ing Of prominent Catholics on Sunday.
Four additional attachments were placed to-day
on the property of the Augustinlan Society, making
fourteen in all. Further inyes igation shows thai
the msfOrunes of the society are due largely TO IN
judiciOus development and improvement of church
properly few years ago the old st. Mays
Church was remodelled into ball at cost or
S42 900 For the past ten years parOchal schools
have been An expense of from $4,000 to Slo,ooo
annually. For q number OF years the society mas
paid interest on an indebtedness OF S26O,OOO luis
said that the property recently sold here by the
Augusinlans was not disposed of in Cd faith, the
corporation being insolvent the time of the sale.
| It's said that the Augustinians own considerable
| real estate at Lansngburg WATERFOWL ana Me-
| chanicsvil-, N y and in Philadelphia and other
| parts of Pennsylvania, and that some depOsltors
have already instituted suits III those States ana
| are cauHug attachments to be made. Inc society
will probably b. forced intO insolvency Many de-
postors wish a receiver appointed to control the
income of the society from p-torates. which aver
aces b 600 yearly 1t Is expected that the priests
viii a nde in their churches tomorrow TO the legal
proceedings instituted by the pensioners.
| Boston. Feb 24-Ihe Herald says OF the Angus
tnian Society that its actual debt is IN round num-
beers $4,000 Deducting mortgages to tine amount
| of $4,000, there remains due to the depOSltors
! 500 900 When the socitey was first founded
Catholics began to deposit their savings with Father
| ODonnell His death occurred IN 1861. aud lie
fct oe $50 900 is said to have existed then. The
| interest paid has always been large, equalllng or
exceeding 6 per GEN. aud a. the deposits have not
! generally been well invested. the result has been
that considerable port of the deposits has been
maid out IN interest. By far he greatest cause ior
the failure is found IN the fact that IN 81 The So
| c,etv then having debt OF - 10000 began new
church adding to the debt @3O0,OOO. ana uslng inc
,orpv of depo,ltors 20 meet this amount. with tho
exception OF $4,000, which was raised "
subscription In addition to The burdehs
enumerated. there is another OF largo
| rnlgui .ude FOR twenty-five years the
society has maintained parochial schools AT an es-
tim1ted expense OF 81 70 900, including S4O,OOO eX.
neudcd i'm remodciliug The old church Tor school
rooms To add their load. the society, hNe or
six wears ago. accepted the Charge OF 81 Lawrrncs
Churrh and the church of the lmnacu ate Concep-
lion which hat then considerable debts
| Deposition, and the public generally are convinced
thar this result has come about through bad man
aU,urut ana Is in no the result OF dishonesty.
| lie clergNmen now in charge make iull eGilDitot
the couolton IF the institution, and admit That tlo
money of depositors Is gone. They clam tlat, Oy
of the Church. they eventually pay OF the deOt
IN full; but the question of interest must Tor sOme
wears to come be held IN allegiance.