St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-07-01
give herewith the contract made with
II. Hackett. of Winona, who took out
Certificate No /.

| give herewith the contract made with
IL. Hackett. of WinOna, who took Out
Certificate No. /:
In consideration of the issue of certificate
numbered one applied for. / hereby agree.
upon the maturity of said certificate TO ac-
cept III full payment of same. two hundred
and fifty dollars $500 in cash, and apply
seventy-tive dollars 800 in payment of the
monthly dues on certificate numbered two
hundred and fifty. which have this day ap
piled for; and one hundred and seventv-five
dollars (Sl75) in payment of monthly dues
on certificate to be applied for upon the
maturity of said certificate number one"
When the society had only $3.50 in the
endowment fund, Mr.. Hackett gave his
check to the society for $3.50, and imme
diately received back from the society
a counter check for $500. Thus the So
ciety holds receipt to snow that policy
numbered one had been paid the full
$500, and so advertised, when in fact
the amount paid was only $3.50. In like
manner were certificates numbered two
and three disposed of. A more fragrant
fraud and scheme for deceiying the
public could hardly be conceived of.
Even under the terms of this special
contract, the society had no
Legal or Lawful Right
to pay said claim in full, until they had
the actual amount required in the EN-
dOWment fund to mature the same, then
if the holder of the matured certificate
desired to make advance payments to
the amount of $3.50 on new policies, the
society would have the cash on hand to
his ere it. He surely should have re-
celved credit upon the books of the So
ciety for the SIS as advance payment on
certificate NJ mDered $50, which would
anxT I'd Nf
month, and like credit OF $40 on an
other certificate covering a period of
four years and ten and half months;
but no such credit was given. Neither
did IL. q. Miller, of Winona, holder of
certificate nun bered ,, nor John ii.
LeurS, OF OWatOnna, holder of ceItiti-
cate numbered 3, receive any credit for
the S225 and $500 respectively, which
they were supposed to nave paid in.
MIR. Barnes, the secretary, gave as his
reason for not allowing the above
Parties the Proper
credit, that inasmuch as none of this
advance payment was in the hands of
the society, the same having all been
gwen directly back to the same parties.
he did not feel like making an entry on
his books that would likely render him
liable for the production of the same,
III the future. W. T. Gary.
vice president of the society, and man
ager of the endowment business, who
is responsible Tor the above dishonest
and irregular transactions, took diff
ferent view of the case, and claimed to
believe that no one connected with the
society could in any event be held liza
bile for the return of any part of said
as a provision TO that effect
was embodied in the receipt given by
the society. In justice to Mr.. Barnes,
l wish to state that the frank and
manner in which he
answered all questions of inquiry, and
the full explanations made by him re-
garding his methods OF transacting
business. is evidence TO me that he was
acting in good faith, and supposed that
he was not doing other than straight
and legitimate business"
The report closes with a recOmmen-
datiOn that application be made to the
courts through the proper channel, for
the appointment of a receiver to close
up the business OF the company.