St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-25
1T MAY Be DISSOLVED.
THE ASSIGNMENT or cHfLEREE'S En-
D0WMENT COMPANY.
APPLICATION ALREADY MADE

"A Report on the Proposed Reor-
ganization Submitted by the
Actuary-Circular Letter Sent
to the Stockholders-As to
Reach About $3OO,OOo-John
Day Smith Interested.
Application was made by John Day
Smith in the district court yesterday,
for the dissolution of the assignment of
the Cnlldren's Endowment association.
The task OF setting aside all assignment
is attended with great difficulty, but
should he not succeed i'll this Mr.. Smith
will try some other means. The state
ment of liabilities will be ready in a
few days, and it is thought that the total
receipts Will not exceed 100000.
The committee TO whom was referred
the matter of reorganization has pre-
pared a report, ana l.. u. FOuSe, the
actuary, is sending copies to the stock
holders, and the reorganization will
depend upon the character OF the replies.
The circular, i'll part, reads as follows:
at is proper first to consider the ex-
pedency of reorganization. The fact
Indicates that it meets with public
favor. 1t is simply question of having
safe plan, correct rates and Il good
organization. As / understand Ii the
rates formerly in force were wholly in
sufficient, and this fact rendered an
assignment a necessity, i'll ORDER to
avoid giving preference to those whose
shares mature before the fund was eX-
hausted. 1t must be admitted that dur
ing the present financial and business
depression is no time to force the sale of
securities and make a distribution OF
the proceeds, ana for this reason alone
the reorganization on q proper basis is
desirable. l therefore suggest that you
communicate with the shareholders and
obtain from them an expression of opln-
ion regarding reorganization. If sutfi-
cient number express themselves favor
able to it | would advise you to pursue
the following plan:
Appoint an established and well
known trust company as trustee for the
shareholders and request them TO send
their certificates TO such company with
the power of attorney to enable the
trust company to file the claims i'll
court.
After the persons favorable TO reor-
gapiZatiOn have done this, the necessary
steps should be taken To secure sufficient
securities now Ill the hands of the as
slgnee to satisfy the claims. In addi-
ton, new articles should be obtained,
new certificates of the stock should be
issued and safe and equitable plans
should be adopted, and when the trust
company turns over the securities, such
shares should be given credit for the
full amount of their claims of the re-
SpectlVe shareholders against The chill
dreu'S Endowment society. Under the
new plan shares should be 500 and
should mature in from ten to twenty
years. as the subscribers may elect. 10
mature share in ten years, the rate to
child eight years old would be 81. 10
each quarter, S1.95 of this amount would
belong 10 the endowment fund eXclu-
sively and Is cents to the general fund
After the share is in force two years
1t should be non forfeiiable for the
| amount of the principal in the event of
member becoming unable TO keep up
his payments, he would lose the interest
only and get back the principal. The
endowment fund is to be held as a
trust for the exclusive benefit of share
holders, and profits arising from interest
earnings in excess of the assumed
rates, lapses or whatever source, belong
TO the shareholders and should after the
fifth year be used III reducing premiums
or may be added to the value Of the
shares. All profits from whatever
source must not be anticipated in the
rates but must be distributed only after
they have been neutrality-suspicious.
10 the above report is appended a
table showing the basis OH which shares
can he written at certain ages, etc.