The Portland daily press., 1886-01-09
CITIZENS MUTUAL RELIEF.
The Adjourned Annual Meeting Last
Night.
Presentation of the Investigating
Committees Report.
Election OF Officers for the Ensuing
Year.

Election of Officers for the Ensuing
Year.
The adjourned annual meeting of the Citi
| zens' Mutual Relief Society held in City
Hall last evening was attended by about siS
hundred members, the attendance not being
SO large as at the meeting of December 81
The meeting came to order at 7.30 at the cal
OF President Kingsbury, who explained that
1t being impossible to occupy City Hall, tc
which the association adjourned, the meet.
ing was called to order in the Messengers
room at the City Building, Thursday evening
and adjourned until last night when City
Hall could be obtained The report of Tho
meeting of Dec. 31st was read by the secre
tary The report was of considerable length
and embodied the annual reports of the treas
urer and secretary presented at the
meeting The report of the melting held il
the Messengers room Thursday evening wa;
also read and both reports were accepted.
Mr.. Rich, the secretary, owing to the great
mental strain to which he has been subject
ed and also having been all the afternoon be-
fore the grand jury begged to be excused
from the performance of his duties during
the remainder of the meeting. The excuse
was granted and w. 81. Purington elected
secretary pro tenn. Mr.. Rich said that he
thanked the society for their kindness, un-
der the circumstances.
The report of the committee appointed to
examine the relations of Mr.. Rich to the So
ofo I, ri f0 No
matter, was read by Byron d. Verril, Esq.
The report follows:
Mr.. President:-Your committee having attend
ed to their duty beg leave to report:
First-Assuming that the experts examination
OF accounts was correct, which there is no reason
to doubt, we find that your secretary is indebted
to the corporation in the sum of S4,758.Oo, being
the full amount of the deficit shown by Mr. Rice
report. This liability is not denied by Mr. Rich.
An inspection of the secretarys books satisfies
us that the fact Of abstraction of funds could at
any time have been quickly ascertained by tests
which are simple and readily occur to persons
who are not experts in bookkeeping. For in
stance; a rough estimate Of the societys assets
and liabilities must have garingly revealed the
ugly fact; or q rough calculation of the years
income based upon the number of annual assess
ments and death assessments; or the simple addi-
tion of a few columns of figures in book b. con-
tanning the daily report of assessments collected.
That no calculation of the actual financial condi-
tion of the society has ever been made by Secre-
tary, auditors, or treasurer from 1881 TO- Noyenl-
ber last soon after Mr. Browns election, is mys-
terry beyond comprehension. For the secretary
not to have applied some such infaible test while
employing an irresponsible clerk, would seem to
be gross neglect of duty.
Second-The only bond we find given by the sec
retary bears date June 30 1877, is for the sum Of
$1,000 and signed by M. N. Rich as principal and
T. G. Hersey and John c. Proctor as sureties.
The condition of the bond is as follows;
Whereas the said M. n. Rich has been duly
one year from December 81, 1876, or until his
successor in said Office shall be duly elected and
qualified; now, therefore; if the said M y. Rich
Shall faithfully perform the duties of said office
for said term or until he shall vacate said office,
by death or resignation; and upon upon vacating
said Office by the expiration of said term or upon
his resignation or death as aforesaid shall cause
by himself or his agent all books, records and
papers belonging to said society to be turned
over to his successor in office or to some one duly
authorized by said society to receive them then
this obligation shall be void, otherwise shall re-
main in full force"
bond, but expired when Mr. Rich was elected
and qualified as his own successor in 1873
Art. A, Sect 3, of the bylaws provides that the
satisfactory to the board Of directors. This bond
was adequate in amount during the year for
which it was given; but in recent years the secre
tary has been often holding more than $1,000 of
the Society'S funds and at the same time an EN-
bezzlement of more than $100oa year has taken
place in his Office without discovery. 1t is there
fore quite apparent that larger bond, to say
nothing of a valid one, should have been required
of him. But the failure to require it does not
cast upon the board any pecuniary liability, and
we do not perceive that the directors have in any
other respect been negligent of their duties.
Third-We are unable to discover that Mr..
Rich has any property excepting his household
furniture. The house in which he lives was puT-
chased by his wife, or in her name, in 1880, and
is now under mortgage for $4,000; and it does
not appear of record that she owns any other
we have received from Mr. Rich a proposition
that ''if the society will relieve him by a valid
discharge from all further liability to it by reason
Of the loss it has incurred by reason of the dis
honest appropriation of its moneys by his clerk,
he will within eighteen months pay to the society
the sum of S400; 5000 of which he thinks he can
pay within six months and the balance within a
year thereafter" He also expresses willingness
to transfer to the society any claim he has against
his clerk arising from his taking the funds of the
society.
recommending the acceptance of this offer.
Fonrth- The present financial condition of the
society is as follows:
ASSETS.
Whole amount of funds in the treasury So, ,125. 80
There are also uncollected bills as fol
lows:
Annual Anl,E assessments unpaid,,.s ,ss $500 90
LIABILITIES.
Due upon the Laiten clam.. 741.o0
I" e Mitchell claim: $4,000
The Pettengill clam (esti- .
Due the Secretary on 1885 ooo
Hall L. Davis ................ 2.5O
-s2, ,746.5o
Balance remaining on hand after pay
ment of these claims .-.......... ...-,---S2, 1874
There are probably some small bills not yet
presented-possibly equal in amount to the I'M
collected assessments
now pending of S1,03000 So that without any
collection to replace the deficit, and after pay
ment Of the Sweat claim i comes to that there
balance of salary due Mr.. Rich can be Offset on
account of the claim against him. which will in
crease the remaining permanent fund to about
$1,450O0 or to 50 $4,000, If we are not liable for
the Sweat claim.
The permanent fund. SO called, is only so in
name. 1t is always subject to payment of the
just debts of the corporation. We therefore re-
commend that the treasurer be authorized by
vote OF the members to pay and discharge al OF
the ssad undisputed claims as they mature,
drawing from the permanent fund so far as may
be Unnecessary for that purpose.
The Sweat claim is contested upon the ground,
puted, some five years older than he represented
himself to be and some four years older than the
limited age of membership when he was admitted.
To recognize and pay such claim without adiu-
dicalon would be to open the door to fraud in the
future, and we recommend that judicial deter
mnation OF the question OF liability OF the society
be obtained as soon as may be.
Fifth-For the future stability OF the society we
propose change OF policy with reference to ben
laws so that members hereafter admitted shall be
entitled to benefits graduated in accordance with
lows: Members from 21 to 80 the full benefit as
provided by said articles; from so to SO nineteen
twentieths of the said full benefit; 36 to Al,
1920; Al to 45, 1920; As to 4S, 1920; As to so,
1920; so to 81, 1920; 81 to 52 1920; 90 to SO,
1920; 53 to "a, 11-2O; and "a to 55, 1920. We
also propose that article three be so amended that
the uniform admission fee shall be three dollars.
The assessments remaining as already fixed
this plan would establish system more nearly in
accordance with the well known principles of life
insurance, and lead to more rapid increase of
the permanent fund until it shall have reached its
limit. After which assessments could occasional
ly be passed in accordance with Article of the
bylaws, shat whenever the permanent fund of
this society shall exceed $4,000 such excess when
sufficient, Shall be applied to the paymentof,death
claims" We also propose that section be so
amended that when the membership reaches or
exceeds 1900 the maximum or full benefits shall
be limited to $780, In conclusion your commit
tee call attention to the fact that the practical
soundness of the society has not been SHAKEN,
and its stability and usefulness will be fully assur
ed by steadiness of purpose on the part of the
members, and prompt payment of dues as cheer
fully in the future as in the past.
BYRON d. VERRILL,
ENoCH KNIGHT,
LEWIS A. GoUDY.
HENRY G. PEABODY,
THOMAS F. DoNAHUE.
On motion of Mr.. A. f. Gerrish, the report
was accepted. 1t was moved that the report
be adopted by sections.
Mr.. Mitchell thought that time for deliber-
ati al 4bof % a.