The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-11
A SHORT TERMER GOES UP
THE MUTUAL ENDoW MENT ORDER
COLLAPSED.

cern-A Meeting to Take Steps to
officers Offer the Members About 80
Per Cent. as Compromise-The Men
Who Backed the Scheme.
The Mutual Endowment Order organized
In Atlanta little more than q year ago,
and a branch OF which has existed in Savau-
nah for nearly year, has collapsed and
carried with it the hard-earned dollars Of g
good many people The members 10
this city were notified yesterday.
that the order can pay about 30 per cent, on
what they have paid into the endowment
fund. This is merely an approximation, so
far as can be learned. and is about 90 per
cent. Of the total amount paid in.
THE SCHEME OF THE ORDER
The scheme of the order was TO pay a
800 endow ment in twelve months aud Sl2
a week sick benefit. The income was to be
derived from assessments of IS levied by
the supreme officers as required, and 81
month dues, oue-haH of which was to MAIN
tain the benefit fund for the payment OF
sick and disability benefits, and
the other half to be paid into
the treasury for current expenses.
Its other sources OF revenue we're the
hoped for increase in membership OF the
order, Iapses or certificates, fines ami inter
est upon invested funds.
Assessments came in for while one at a
time; then they doubled up aud finally ran
as high as SIG, five assessments and 81 dues
in a single month,
The endowment certificates, IL was esti-
mated. would mature by tho payment of
twenty assessments. The scheme was a
plausible one.
THE MEN BACK OF IT.
The mon at the head of the order and It's
principal officers were: J. NJ Ponder, presi-
dent; Hon. John T. Henderson, ex-state
commissioner of agriculture vice president;
ID. M. Cabaniss, Hon. E. W. Martin, Ira
Mowery, who was its secretary, but who was
succeeded by r. g. HartSdeld aud W. J.
Albert, ESQ. The order was established IN
Savannah upon the strength given it by
he men who were its hackers.
The Savannah branch had at one time
about forty members, business men, clerks
railroad men and employees and a number
of ladtes-wives and daughters Of
those who had become identified
with it upon its establishment
hero. Something over $1,000 have been
paid into the order from Savannah on
which, according to the compromise offer of
the supreme officers, 500 will be realized.
The average amount paid ia is something
over $40 per member. The certificates OF
the charter members OF the Savannah
branch were to mature Aug. ~, and these
members had paid in considerable.
SAVED TIE LAST ASSESSMENT.
check for SlSS was forwarded to At
lanta Saturday. but upon receipt of the no
tlfication of the insolvency OF che order
payment was stopped, and the supreme sec
Rotary was directed to return the check.
meeting of the Savannah branch will be
called to take steps with a view to an in
vestigation Of the order and 10 prosecution
of its officers.
Certificate holders were notified three
weeks ago that their certificates would
mature upon the payment Of S1l1 and that
the order was ia a prosperous condition.
Yesterday they were notified that Its m am
bership had allen of TO sixty, that the TO-
tai amount in the supreme treasury was
Sl,l00, which would pay in the neghbor-
hood of 80 per cent on wha. had been pa d
into the endowment fund, not counting sps-
cial assessments, certificate fees and dues
THE ATLANTA MEMBERSHIP.
Circulars were sent out short time ago
giving list of the names of persons pur-
ported tc>As members of the order in At
lanta, and claiming membership there Of
over $50, in 1t some of AtlantA's prominent
citizens. The Savannah members 90 not
understand how this membership, IL it
ever existed, could 80 suddenly be
reduced TO less than thirty-flve The
belief here is that all but a small part Of
the funds Of the order are In Atlanta. One
of the features of the institution similar to
that in what was known as short term
orders in the north before they were broken
up by the courts. was the offer TO credit
each addition to the order through the
efforts of its members, a certain amount on
the certificate.
MUTUAL ENDowMENTs ELSEWHERE.
Mutual endowment orders had brief
and rockety career In several northern
cities where they were brought up with a
sudden turn by the courts some months ago
on the complaint of members who did not
realize the profits promised and who found
1t impossible to secure even what they had
paid in. Philadelphia is said to have been
the home OF this character of financial as
sociations, and 1t was there that they be-
came most numerous and bled the largest
number Of people. Prospectuses Of most
alluring character we're issued Demon
strating, as clearly as it Is possible for
figures based on possibilities to demonstrate.
how 500 was to be secured In year where
only $50, $50 or even as low as $40 had been
paid in. An admission fee was charged,
aad became the basis of she fund.
A FAMILY AFFAIR.
Allowances were made TO the active mem
bers for bringing in a certain number of
members, and in this way they were per-
United TO secure their 800, and sometimes
$500 or $500 within three or four
months. AS was subsequently shown,
quite frequently these fortunate ones
were decidedly on the inside, being,
in number of cases, members of the
families of the dead officers These we're
then used as references and letters were
published from them acknowledging the
receipt of the money due them from the
order. This, Of course, was true, but the
majority of people did not stop to investi-
gate any further and eagerly graspsd what
seemed to be the chance OF q lifetime.
When the first bubble burst there was con-
sternation among thousands who had put
their money in the treasures of suoh orders
Implicitly believing the statements made Ia
their circulars.
BROKEN UP BY THE COURTS.
A judge OF one Of the courts had the plan
of the orders examined by fiuanciers of
note and they pointed out how preposter-
Gus it was. That settled it. One after an
other was closed up by the courts and re-
ceivers appointed. In a number of cases
the officers were arrested on criminal
charges. In q short time Of ali the mush-
room growth not q single one was left.
A profitable trade in policies of these
orders then Rprang up and a dozen or more
brokers opened offices for the pur-