The Portland daily press., 1895-09-20


consulting actuary.
The attention of the Commissioners
was specially called to the creation OF the
Permanent Guaranty Shareholders
Fund, so-called, of $100, 000.0 90, estapilshed
by vote of the thirty shareholder. present
(about one..half..of whom were officers and
held on May 18th, 1895, at tue ONCE rof
the Association in Manchester.
1t was provided by this vote as follows:
ga Permanent Guaranty Shareholders
Fund, not exceeding two hundred thous-
and dollars, is hereby established, IN whlc
fu nd, preferred shares of par Value OF
one. hundred dollars each, to the am
hundred thousand dollars may be issued
for cash paid in, and common shareS 20
the amount of one hund1ed Thousand
dollars may be issued for such purposes
and upon such terms and conditions a
may be determined by the directors Oh
the Association.
The.said fund, to the amount OF said
one hundred thousand dollars IN cash,
shall be kept and maintained as guar,
anty fund for the payment OF all the legal
liabilities of the Association, in case Of
any insufficiency OF its assets.
All moneys received by the Assoclatlon
for expenses, the rate per cent OF which
per share shall continue as now IN force,
and all earnings of
THE PERMANENT GUARANTY
SHAREHOLDERS' FUND
shall be credited to said fund and the
entire expenses of the Association shall
be charged to and paid from said fund,
provided that the total compensation of
the officers and managers of the Associa-
tion, as fixed by the Board of Directors,
shall not for any three months after the
first year exceed sixty per cent Of the SUM
paid as dividends to the shareholders in
said fund for the preceding three
Moneys received or paid for
legal expenses taxes and commissions for
purchase or sale of mortgages shall not
be charged against or credited to said
fund. The cash assets of said fund may
be invested and the earnings thereon ap-
portioned thereto in the same manner as
the funds of the general shareholders of
the Association.
All moneys to the credit of the said
fund in excess Of one hundred thousand
dollars, on the first days Of January,
April, July and October in each year,
shall be paid to the shareholders thereof,
as follows, viz:
To the preferred shareholders in said
luuu ulf1u6uu AOu CACCOulA8 OASAo POA
cent and tho balance thereof, less the
amount paid to wiJhdrawingSshareh
pro rata to the common shareholders. All
the preferred shares SO withdrawn and
paid for shall be the property of the COM
mon shareholders and may be resold at
not less than par and the proceeds of
such resale distributed to the common
In case of a general distribution of as
sets. the legal liabilities of the Associa-
tion to it's creditors and general share
holders shall have preference and priority
upon all the property of the Association,
including the amount in said fund, and
the preferred shareholders in said fund
shall have preference and priority over
the common shareholders thereof.
Immediately following the passage of
the vote,
MR.. G. PERCIVAL STEWART, THE
PRESIDENT OF THE COMPANY,
presented his subscription for the entire
amount of the preferred shares for the
Permanent Guaranty Shareholders Fund,
which was awarded to him, and which I
presume he now holds.
The privileges and conditions at
taching to these certificates are
1. This certificate of preferred shares
in the Permanent Guaranty Shareholders
Fund is issued under Section 20 of the By
Laws establishing said fund, adopted May
IS, 1895, and is entiGled to all the rights
therein provided.
This certificate is fully paid and
non -assessable and the holder is entitled
to, quarterly dividends at the rate of per
cent per annum out of any moneys in
said fund in excess of one hundred thous-
and dollars as provided in said Bylaw
which is hereby made part of this con-
tract.
This certificate may be surrendered
by the holder to the Association at any
time and the Association will pay there
for. the par value and accrued dividends
thereon, to the extent of the available
moneys in said fund in excess of one
hundred thousand dollars.
II was found that $40, o66 90 of this
S1OO 600 paid in by the President for the
preferred shares Of this Permanent Guar
anty Fund, was
OBTAINED BY THE PRESIDENT
OF THE ASSOCIATION FROM
THE ASSOCIATION.
viz: $4,000 of Ethe money was loaned
to him by the Association on his promis-
sorry note. payable on demand sat per
cent interest, with stock assigned as Sc
curity. the value of which was less than
the amount loaned. That S14, e14 90 .of
the amount was obtained by the sale by
the President to the Association OF mort
cages, without authority, some of which
mortgagesyw past due. That SIS, s52 90
of the amount was obtained from the
Association on the surrender sby the Presi-
dent to it of Trustees Stock in violation
of the conditions under which some of it
was issued.
That the stock pledged as collateral to
the loan of $40, 600 was bearing per cent
dividend credits while the note upon
which the loan was made bore but g per
cent That taking the conditions Of the
subscription to the fund in connection
with the construction of the articles and
bylaws held by the management OF the
Association, it 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
curity to members whatever.
While the term permanent guaranty
shareholders fund.- is used in the state
ment, for the purpose OF designating a
particular transaction, it would be more