Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-09-20

| 'io'h, 10 bDe extent of the available
moneys in said fund in excess of one HIM
dred thousand dollars
1t was found that $40, 066. 90 of this
500, 900 paid in by the president for tbe
preferred shares of This permanent puaran.
" fund, was obtained by The president o,
ehe association from tie association. viz;
sio, 700 of the money was loaned tn him
py the association on his promissorv note.
payable on demand at SIX per cant inter
EST, with stock assigned as sccrrity. the
value Of which was less than the amount
leaned. That S14, Sl4 800 of the amount
was obtained by the sale By the president
| 10 the association Of mortgages without
authority some of which MORTGAGES were
past due. That SIS, 252 90 of the omopnr
was obtained from the association ON the
surrender by the president TO it of trus.
tees stock in violation uf the conditions
under which some of it was issued
mat the stock pledged as collateral to
'ile loah or $40, 900 was bearing eight per
cent dividend credits while tbe note unon
which the loan was made bore bnt e per
| cent. That taking the conditions of the
SUBSCRIPTION TO the fund in connection
"leh the construction of the articles and
| p!-4aWs held by the management Of the
association, 1t Is possible to first use up
every dollar of capital dues before this
guaranty fund can be touched. and that
| There Is IN It's creation no additional Sc
curly to mem hcrs whatever
while the term permanent guaranty
shareholders fund" is used in the state
inent, Tor the purpose Of designating a
particular transaction, it would be more
properly classed with the dues liability
for the reason that 1t participates in the
| earnings OF the association after IS
months, and guarantees only the outside
creditors of The association, the limitation
of the expense fund and the fixed con
| tracts OF the association, and upon the
recommendation OF the commissioners the
losses occasioned by withdrawals and ex
cept as above Is no additional protection
70 the shareholders. 1t does not meet the
| full requirements of guaranty fund. as
that term is generally understood.
AT this same meeting held Nav 18th.
the following preamble and resolution
was adopted:
Whereas, the unlocked for growth of
the business OF the association has pro
duced results requiring changes and
notifications of the contract of October
Sd, 1891, between the association and its
general agent, and the further growth OF
the association may be impeded by the
existence Of valid contract placing its
entire business in the charge of IA single
agent, and contention having arisen as TO
the amounts now due the agent under
this contract and it is there fore deemed
desirable to acquire the rights of such
agent for the sole benefit of the associa-
ton, and
Whereas, by said contract il was pro
vided that in the event Of x discontin.
uancc Of the agency, the agent should
continue to receive all commissions and
renewals on business written while the
contract should be in force, and the
present value OF the agents rights TO the
commissions and renewals amount to a
very large sum. estimated at more than
one hundred Thousand dollars and is CON
stantly increasing, and
gWhcrcas, the agent has consented to
surrender said contract aud all its rights
Hereunder together with all claims
against the association, and accept in pay
ment therefor $780, 900 in the common
shares Of the permanent guaranty share
holders fund, this day established by the
bylaws:
Resolved, that the association will pur-
chase ell the rights OF the guaranty
agency company under said contract to
gethcr with all its claims against the as
ISOLATION and in full payment therefor
will issue to such agent or its stockholders
common shares in the permanent guar
auty shareholders fund to the amount
of 500, 900, the certificates Of such com
mon shares to contain the following con
ditions among Others, viz;
/. This certificate of common shares
in the permanent guaranty shareholders
fund Is issued under section 90 of the by
laws, establishing said fund.- adopted
May 18th, 1895, and Is entitled to all the
rights and subject to all the liabilities
therein provided
>. TIL. certificate is issued on account
of payment for all rights of the guaranty
agency company to, and its stockholders
under contract with this association,
dated October Sd, 1891, and in accordance
with "A vote of the mcmbors of the asso-
citation at general meeting held May IS,
1895 .
Subsequent to this meeting Of the mem
bara, the directors met ana took action
necessary to amend the by laws and 10
dispose OF the guaranty agency company
pursuant to the TT solution offered by Mr..
~ttecter IL should be noted that the
president Of the Granite State Providept
Association WAS also the resident of the
guaranty agency company.
OF the dues contribution to this assoCia-
ton by members, the first three months
and the,third three months dues of the first
year and the first two months OF each sub
sequent year, are taken for expenses, and
this was the amount allowed to be de-
Quoted from the members payments by
the Guaranty Agency Company men
toned above the present worth Of which
seems to have been estimate d by the gen
etal counsel of the association at that
time Mt upwards Of 500 600. and upon
his resolution, rs shown, the association
purchased the rights Of such Guaranty
Agency Company and in full payment
thereof issued Sl00, 600 common shares of
the permanent shareholders guaranty
fund.