The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1883-02-28
LOST THEIR MONEY.

Failure OF a Catholic Savings Institution
Which Used the Money of Poor DepositOrs
to Pay interest.
LAwREScE, Mass, Feb. 2L-Seven suits have
been instituted against the Augustinian Soeiety,a
Roman Catholic Organization, formed hero in
1870 to receive deposits Of parishioneTs OF the
Church. Attachments have been issued for ST.
900. and more are likely to follow. The Society
was formed by priests and subsequently char
tered by the Legislature with authority TO hold
property not exceeding $4,000. a large amount
of real estate including Church property, has
been conveyed TO the Society since 1851. when
posItors mad difficulty In securing deposits
and several claims have been entered
against t. II has been selling real estate for
some time past. and has been a large borrower
of money from the banks. AZ a meeting OF the
depositOrs the latter were notified that no money
was left, but the Society wonld endeayor 70 pay
placed 40 $50 600 to depoSiOTs, ana S2OO,COO 10
mortgage holders. Tine oepoSltnrs number 40, q
majority being poor female mill operatives IL IS
generally believed this is The elimination OF sew
eral years OF gradual depreciation Ct Affairs OF the
Society.
heavy losses In addition TO the poorer deposit
tors there are several heavy depositOIs from Sl6-
600 down 10 s. COO Much excitement exists ana the
statement of the Society s condition will proba-
bly, be made OF a meeting OF prominent Catholics
Sunday. Anxious depOsi.ors continue to pour IN
attachments.
BOsTOS Feb. 24-The Herald OF the St.
Augusunian Society that its sctusl debt in round
numbers is $50, 900. Deducting mortgages 10 the
amount az $4,000, there remains due the depOs-
ftors S429 600. When the Society was FIRST formed
Catholics began to deposit their earnings with
Father o. DOnnell. His death occurred in 1881,
and deficit of $50 600 IS said 10 have existed
then The in terest had always been large, co ual
ling or exceeding per cent, and as deposits had
not &c 2. ally been well invested the result has
Deen that d considerable portion ?! the deposits
have been paid out IN Interest; bat
by f5r the greatest cause is found
In the fact that in 1872 the Society then having
debt 81 Sl5c 0JJ. IL began new Church, adc1ng 10
the debt SEQ co., and using the money of de Oost-
ors 10 meet this amount, with the exception of
$1,000, which was raised by subscription. In ad-
dition 70 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 remodeling old Churches for school
rooms. To add to their load the Society five or six
years ago accepted charge of the 81. Lawrence
ton, which had been considerably in debt. The
depositOrs and public generally are concerned.
This result has come about through bad manage
ment aud Is in no sense the result of roguery.
The e,ergymeu now in charge made full exhibit
of the condition of the Institution. and admit the
money Of the depositors is gone. They claim that
by reducing the expenses and strengthening the
revenues of the Church they can eventually pay
of the debt In full, but the question OF Interest
for some years to come viii be held In allegiance