Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1892-01-15

STATEMENT OF THE SECRETARY
Showing the Alleged True conditien o
Arairs-- How the Business vas
MSnzgec-Angly Secured


YeTex and anonymous writers. am
instructed by the board Of directors
10 recite the fzcts Of the case fully
there being no reason for withholding
them now, and their publication from
IN authentic source being perhaps
sufficient TO refuts any malicious at
tacks upon the management that may
appear. The promoters Of the associa-
tion had good field for the under
taking, and had reason 10 expect il to
be very successful. II wss proposed
10 extend rs operations 70 surrounding
towns not having associations Ut their
own, and u was rightly surmised tina,
the cost OF main tanning one creansxation
with central management. would be
very much less than that OF = number
OF small independents associations with
limited fields, each supporting paid
officers, and mourning the expenses OF
advertising and Tor stationery, etc.
Some OF tue representative mea of this
city saw IN 1t an enterprise worthy OF
Grand Rapids. the commercial center
Tor the large district tributary 70 it. At
the outset the board, who LOOKED upon
the association ae they would upon any
other commercial enterprise, supposed
that reasonable compensation might
he made TO the directors for the labors
TO he undertaken, and it was chiefly
due to Mr.. Yerex, who WAS one OF the
committee appointed TO arrange this
matter, that the compensation was
liked upon. Mr.. Yerex's own salary he.
ing made sufficiently high. The drec-
tf,v q hav ~ OF cA
empted from membership fees. About
three months after the completion of
the organization the directors by
unanimous vote, renounced their claim
to any compensation whatever, except
| superintendent OF agencies, and not
| them from the funds of the association.
| This action Was taken without any sug-
gestion from Mr.. Yerex, The apprais-
crs fees were all paid by the borrower.
and IN many cases appraisals were
! made without compensation of any
kind. This being the couree
Refused HIS Demand.
At this meeting Mr.. Yercx agreed to
I accept $500 q year for his services,
and the superintendent of agencies ac-
cepted $500 per year for dcvoting his
whole time to pushing the sale Of stock
and other work. aud was further
allowed commission OF 90 cents per
share, for stock sold by him, it being
supposed that from eighty to one hun
dred shares would be sold by him
monthly. Mr.. Yerex 1t the end of his
first year of Office, disregArding the
agreement mentioned, demanded a
salary Of $1,000, per year for the past
year, which the board refused TO allow
and he was compelled to accept $500 rs
first agreed upon. The board, in June,
1891. having found Mr.. Yercx inatten-
tive to their requests, that he be
prompt and exact in his duties, al
length dcsired him to resign, and he did
90. upon the understanding that he 70.
main . director, and that he be allowed
to satisfy himself personally Of the
capabilities and integrity Of Mr.. Ly.
man, with whom he was unacquAinted
but who had already been selected "A,
his successor. He stated at the eusu.
Ing meeting Of the board, his high
opinion of Mr.. Lyman as y young man
OF integrity, of character, and high
business capacity, and thereupOn Mr.
Lyman was duly elected in Mr.. Ycrex'i
stead for the balance of his term of Of.
ice, agreeing to work without any
compensation whatever, but. lookins
for recompense ~ the proper fees lie
would receive as attorney for examin
ing the abstracts of title to securitie
offered, and expecting, - young law
yer, to secure clients by the opening Of
fered.
withheld the hooks.
Mr.. Lyman being overtaken by very
serious illness. was, greatly TO the re
greet Of the directors, compelled tr
leave Grand Rapids, and Mr.. G. II
Gleason. in whose Office he had been .
student, acted ~ temporary secietar,
| until the election Of the present secre
tary, who receives 500 per year n
compensation for his services. Mr.
Yerex withheld the association's hook
so long from Mr.. Lyon this successor
that suspicion was aroused, aud whel
they were finally secured, searching in
! vestigatlon revealed shortages. Tn.
board had not doubted Mr.. Yerex'
honesty before this discovery; they hat
no reason TO, for they knew MN only a
man OF high standIug in the commu
nifty. and were, besides, amply secure,
. from loss by the bonds he Was require,
to furnish. The discovery WAS shocl
and surprise TO them. A meetin
was held, and IL was thought wisest I
continue the investigation patiently
and, as each shortage was dis
covered, TO obtain immediate res
titution from Mr. Yerex, IL be
ing evident that his maifeasance
were not confined 10 few instancei
and were 60 covered up ~ TO make
impossible 10 discover them of hand
IL Was thought best that the annus
meeting Was the proper time TO max
: any statement TO tne stockholders tina
was necessary, and that by that tim
the directors could give an intelliger
| account Of the whole matter. an
could show 10 the stockholders, "a
. they actually did, that no means ha
heen neglected 20 recover what ha
/, been distracted by the secretary.
. was not considered necessary 10 di
continue the sale Of stock. the associl
ton Notwithstanding Mr.. yeres's nei
lect TO answer communications and .
, tend to the usual applications for with
. drawai of stock and other matter
. ! still having . bright future hefore
| apparently. now that conecleptiot
!. secretary Was in charge.
No Lsss win assuls.
: Later developments from Mr.. l..
I man, Mr.. Gleason and The present 80
; retAsv, revealed 90 much moro matter
1 sieu than was at first known, with r
. sultsut distFust and complaint frol
stockholders, that il vas consldere
49, 70 discontinue the sale Of stocl
land after collecting frem Mr. Yers
4 every cent Of shsrtage. TO lar M fac
, ffanxly before tho stockholders Ih
: wss done 81 the snnual meetspg jal
! nary n. the balance due frem ~
! fsrss brsas payable N fee heur