The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-09-17
Outlining the Future Policy.

Outlining the Future Policy.
While discussin g the new financial
scheme adopted by the convention of Iron
Hallers. Mr.. Albert S. Haeseler. chairman
of the permanent committee on law and ro-
vision, yesterday made the following state
ment 20 Journal reporter: I'm the man
agement of fraternal societies there need be
no longer any excuse for intrusting large
sums OF money to individual officers.
With the very larGe and reliable banking
institutions or trust companies ready and
competent to take charge of the handing
and Investment of large sums OF money. at
q trIfiing cost TO tho organization, L fail TO
see any reason why all cooperative assess
ment societies should not adopt the
custodian plan. which Is now in successful
practice IN a umb Der OF cooperative
societies. Custodianship involves neither
expense nor complicated methods. AID by
the adoption of the system all danger of
loss Of funds through incompetent or dis
honest officers is avoided. ALI temptations
to make improper use of the s0ciety's funds
are removed and the method Is at once
simple and safe.
"fhe remittances of the subordinate
lodges are made payableko a designated
bank or trust company. The checks or
drafts when received by the supreme Sec
rotary can be verified, and, If found cor
rect, deposited with the custodian COM
pany. Duplicate deposit slips are made
out. one of which is certified by the bank
and handed TO the supreme treasurer as ev-
idence of so much money received in the
general treasury.
Investments of surplus funds are made
by the supreme trustees IN conjunction
with the officers of the custodian bank.
The securities for funds invested are placed
in y box in the vaults of the bank. 10
which, by agreement, no one can have &C
cess except those authorized by the order
for such purpose. and then only IN the pres
ence of an officer of the bank, thus pre-
Wanting fha un0fhanafinC of the ord arfa
securities by the supreme officers. When
securities are surrendered or sold the same
rule will apply as in the remittances from
the subordinate lOdges-the proceeds of the
sale of securities to revert again to the Gus
todian company.
I'm paying matured or disability benefits,
the drafts are made ont by the supremes sec
rotary, countersIgned by the supreme presi-
treasurer. they can be handed over to the
persons entitled to the same. Written in
the body Of each check or draft there must
be q statement of the express purpose for
which il is drawn.
There is no occasion, and there never
has been any necessity, for the supreme
treasurer of a frateTnaio organization touch
ing any OF its funds. either in the receipt Of
the payment of the benefits to it's members.
Tho officer of any order who Will deny the
wisdom of this plan does 50 In ignorance.
or else ne is not altogether honest, either
with himself or with his organization.
There is no intelligent man or woman,
familiar with the causes that led to the
difficulty in the Iron Hall. that will not
admit the truth of the assertion, that had
the custodian principle been 10 force this
disaster would not have overtaKen it. 1t
is q warning to all officers OF orders that If
they fail to take prompt measures Co adopt
this system they may expect to be charged
with criminal carelessness. and held ac-
countable for any possible future defalca-
ton or transportation of funds in their
possession. 1t is to be hoped that the Bit
ter lesson of the Iron Hall may not be lost
on any other societies.'
Rumored Indictment Of somerby.
1t was stated yesterday. upon certain
authority of a confidential nature, that the
grand jury. just adjourned, had found an
indictment against ex-Supreme Justice
Somerby for fraud. Prosecutor Holtzman,
who naturally would not admit that an
indictment had been found until the man
was arrested, stoutly denied the report last