The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-03-21
THE FINANCIAL UNION
Vice Chancellor Birds Opinion
Showing the Grounds for
DissOlving the Order.

TRENTON, March 81, 1s9O.-The opinion
of Vice Chancellor Bird in the case OF the
Financial Union is of general interest to
all secret societies. AS has already been
reported, he decides that the order should
be dissolved and a distribution of the
assets made among the members.
To do otherwise, he thinks, would be
subjecting the rights and interests of all
those who withdrew from the Union Dy
ceasing to pay their contributions ac-
cording to its constitution and bylaws.
And although the Court has aiken every
p~recaution to protect those who might
desire to secure their interest against
lapsing, it certainly cannot be an IN
disputed question whether those VINO
have paid their dues to the receiver rather
than into the treasury of the Union, there
by maintained their standing in the Union
and that any court has the power to say
hat such payment is equivalent toa
strict compliance with the requirements
of the constitution and bylaws. ms is
a grave consideration, for at the time OF
the Peltz bill there were over 2,SOO mem
bers, and at the time of the hearing OF the
cause there only about 2l5, so that II the
bylaws be strictly enforced a very large
proportion OF the members will have Tor
feited all their payments. 1t Will conse-
quently be an object of great so%licitude
on the part Of the 215 to establish q for-
feiture. because they would become en-
riched thereby. These things being SO,
the Vice Chancellor is of the opinion thai
the only satisfactory course to be pursued
is to distribute all the moneys in the
hands of the receiver to those who were
in good standing at the time OF the ming
of the Peltz bill, and at least to those who
have continued TO make payment to the
receiver since.
NOT INsoLvENT.
1H1o Co11rf fbinEG thar fhn claim ri IN.
%solvency cannot be maintained because of
the maturity OF any of its contracts, ac-
cording to the strict letter of the constf-
rntion and bylaws. Not a single claim
has been presented which has not been
promptly discharged, except those which
grew out of the transportation of the
funds. If the Union De found insolvent
1T must be upon some other basis. Only
one other view can be taken into account
considering the allegation OF the bill, and
that is the charge that all the moneys
which have been paid are due to the
members respectively, because OF the
fraud which underlies the whole scheme, !
and being so due, there are not sufficient
assets to discharge them, and hence the
insolvency.
The purpose of the statute, the Vice
Chancellor thinks, is to enable numbers
of citizens to unite in order that they
may support and maintain those of their
number who, perchance, become unfor
tunate. And yet the answer expressly
admits that upsn the basis upon which
this Union is formed it N be at all
successful unless a very large proportion
of its members forfeit their right to mem
bership by falling or refusing to comply
with all the terms or conditions OF the
constitution and bylaws. Ii will be OBJ
served, therefore, that in all probability
the great majority Of those who need the
protection of such an institution are not
only deprived of the benefits, but by for
feiting the right contribute to the benefit
of those who are not in such need n
who not been unfortunate. 1t is admitted
that at least thirty-three and one-third
per cent. of the members of such inStitu-
tions forfeit their membership by failing
to comply with oil the conditions.
AGAINST GOOD POLICY.
The Vice Chancellor concludes as fol-
lows:-I find it very difficult TO conclude
that a scheme based upon such acknowl-
edged weakness, misfortune or disability
Of a large number of citizens is at all
within the true spirit of the act. a cal
culatiOn based upon the theory of these
officers shows that instead of the posi-
bility of a member in full standing ever
receiving $1,000 for $3.50 paid in, he can
only receive about $3.50, and this after
only making allowance for the immense
number of forfeitures above spoken OF.
How can 1t be said that the Legislature
ever intended to allow the learned and
skillful, and financially able to make
profit under the guise of benevolence and
charity ou of the unlearned, unskilled
and those who are SO unfortunate as to
suffer from financial disability? After
the fullest and most careful reflection, I
am unable to discover any method or
principle of law by which this scheme
can be maintained under the act. It
seems to me that the scheme presented
by the Constitution and bylaws in this
case has more the appearance of a lottery
than of charity.
A decree is advised making the injunc-
ton perpetual and continuing the re-
ceiyer and directing the distribution of
the FUNDS in his hands amongst the mem
bers of the union, all of such members to
be ascertained by q master to whom the
same will be referred.
For M0y0r:-RobeTt Duuis.