The morning call., 1894-05-21
SQUANDERED THE FUNDS
And Levied Big Assessments
Without Authority.
COLLAPSE OF A SECRET ORDER.
Its Members Throw 1t Into the
Courts TO Save What
They Can.

PHILADELPHIA, May 20.-The Order of
Tonti has gone the way of the Iron Hall
and the Earnest Workers. The executive
committee of the order assigned Saturday
to the Land Title and Trust Company
and Francis Skunk Brown. the orders at
tOrney. 1t was forced to this action by the
application of certain members for the
appointment of a receiver. just how well
or how badly the members will fare by
this last step cannot be determined for
some time. for although the assets are esti-
mated to be In the neighborhOOd of $780,
200 The Liabilities cannot be Appropriated.
The greater part of the assets are invested
in first mortgages on improved real estate.
bearing a bout 6 per cent interest, and the
rest is in Government bonds. The supreme
officers state that the mem bers will get all
or nearly all of the money they have in
vested. and claim that their action was the
best thing to be done under the circum-
stances.
On Tuesday, when a number of men,
berS OF Energetic Lodge Nc. filed bill of
equity in the Common Pleas Court. apply
Ing for the appointment of a receiver, the
supreme officers realized that the order
was doomed. President Clausen had ex-
pected the blow, for when. upon his cleo
ton to the presidency three weeks ago, he
began to examine the state of affairs he
found that there was sos, 600 of matured
certificates outstanding. with others
rapidly approaching maturity, and with
no cash to pay them without draft upon
the reserve fund.
1t would have been possible to run Oh
for six months. but the crash could not
have been averted then, so President
Clausen, to tide it over, decided to levy the
debit assessment of S525, which caused
dissatisfaction and brought down the card
house. The orders attorney said large
assessment would not stand the test of
law. and so the supreme officers decided
tina: the only thing to do was to make an
assignment.
The decision was fastened by the filing
of a second bill in equity against the
order. This bill refers at length to the
laws of the order, the right of the su-
preme officers 10 levy assessments and
AYERS neglect of the officers to levy assess
ments during the earlier years of the or
der as were necessary to discharge the liza
bilities and maintain its solvency. 1t is
averred that since October last, although
twenty assessments, aggregating upward
of 100000, have been paid. not one dollar
has gone 20 the reserve fund. Further than
this condition of the trust upon which
this fund was created was that only an
eighty fourth part should be drawn in any
one month. 1t is said that $500 600 has
been drawn and misapplieG from the fund.
which amounted TO 81, 726. 745 Al last Octo-
Der. The marketable value of the securi-
ties in the reserve fund is also alleged
TO be doubtful
After referring to the financial history
of the order for the past nine years, the
bill urges that it will require during the
next two years the collection of SIS, 0G0, 600
from a mem bership of 10000 and rapidly
decreasing; and this sum. If collected, will
discharge the liabilities of the order for
only two years. The order is involved, the
bill says, in hopeless and irredeemabe in
sOlvency in consequence of the neglect aud
mlsmauagement of the officers and the
violation of its constitution and laws
The filing of this bill preciptated a crisis,
and upon the advice Of their counsel the
supreme officers recorded their assign
meat.
BROOKLYN, May 20.-An indignation
meeting of the local members of the Order
OF Tonti, whose supreme officers have
just made an assignment Mt Phiadelphi q,
was held last night at Fraternity Hall.
About 800 were present. aud the feeling
expressed against the order was intense.