New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-03-19
MUTUAL BENEFIT LIFE ASSOCIATION:


POSED IN AN OFFICIAL REPORT.
+, Albany March 1s.-Mlchael shannon. examiner, has
reported to Superintendent Maxwell of the Insurance
Department. the result Of HIS examination Of the affairs
OF the Mutual Benefit Life Association of America
with Offices IN New-YoSk City, the society which has
lately been brought prominently before the public BY
reason Of charges made against its president, e. IT,
Kent By Anthony Comstock The examiners report
says: aIn our examination We find that provisions
Of the bylaws have boon continually violated by using
for expenses the moneys contributed by members for
the payment Of death claims" Statistics are then
given Of the affairs of the company showing that the
amount charged against what known as the Sc
curity fund (which fund expedcnt adopted for
the purpose Of increasing tho amount thai could with
any Justification DO used for the payment of expenses
aggregated SCI s14 o. of which the examiner thinks
that s11 ,s25 10 is improperly charged against THIS
fund, The report goes to say:
This deducted from ss1 ,sI4 o. which is the total
charged against this fund the ledger leaves
s9oSs "a the properly charseable TO this fund
above stated In this 60 9SS "a we have allowed an
tied Of &C. o24 o. transferred from this fund to the legal
expense ON December 81 1885, because we are
not quite sure that according the bylaws IL Is an i'm
proper charge against the fund.
The total amount these against the security
fund 1885 s114s5 "a, and BY curious coincidence
this was the exact amount due January ], 1886, to
President Kent money loaned by him to the assoeis-
uen and which repaid to him during the first three
months Of 1885
And this brings us 10 Of report
the examination 1854 In that report there Is state
ncnt and sbilities In the list Of liabilities
sher Is an item OF 60 due Ito officers for advances
a OF OF sxnfzatoE and represented
had been advanced by President Kent ana secretary
Gatdpes fhese officers ana wish have this item
earca as liability against association, as the asso
cation would the appearance OF being nsovent
They therefore executed written release, which con
eluaes as follows TO WITT
being that all other fndeDt
eons Of tas association shall have preference In the
sseral fund.- claim Of ours as above set forth
shan be paid until all others paid or satisfied and
not tscu uniess paid Of general fund created BY
psyroept 10 the for expense purposss Not
xiesasnne these positive statements the officers caused
hes hans 70 repaid "a them between the date or sd
release and March 1885, and when there was not only
., money IN the expense fund but that fund wa actually
efdrawn and the amount necessary 70 repay these loehs
sas isken from the mortuary fund.
During the year 1887 the presidents salary and com
missions amounted about $4,000, in addition to which
be $4,000 In settlement Of this over
is he cave the second mortgage for 500
N property ownef by him This mortgage we could not
sass as legal investment Of the associations funds and
Inc president thsreupon took It replacing it with cash.
II Ia the custom carry certain Of the officers dree
prs and employees their relatives free list
Ia say their dues and assessments paid by the
ssoeston out expense fund Such payments
lse about %. 500 year,
For an association Of It's sire unpaid death
ut quito figure The amount received mortuary
assessments year $500 81 A. which, after de-
acting 20 per for the FUND.- would leave
e<714e II applicable TO the payment OF death claims.
rhiIe the unpaid death claims this date amount
a62 600
The total amount received during year 1888 from
hnua dues and fees representing the expense fund was
b6ef7 40 while the amount actually paid during the
period for expenses 1927 35S So the deficiency.
course being taken from the mortuary fund.
Incorrect figures in the annual statement Of the
ais. tnefnd kha tom mia
unpaid at gill 600 while in fact they amounted
AHA ono.