The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-01
HINsEY's ENDOWMENT REPORT.
Says the Rank VIII Not Lose by Texas
RauI< ERiIure.

John A. Hinsey. of Chicago, made a re-
port on the condition of the endowment
fund, which is under his supervision as
President of the Board OF Control. This IS
in addition to his report made several days
ago concerning the manner in which Sc
curities were invested. 1t is as follows:
THE policy which the Board of Control
has heretofore adopted, and which has
uniformly been confirmed by you has been
continued during the two years just past
and the surplus funds invested in securi-
ties believed by the board to be safe and
secure at rates of interest remuneratiVe
to the rank.
When last we reported to you, the in
amounted to $S99, 1875. There has been still
further added to this amount the sum of
$39,9l5.SS bringing the total sum on July l.,
$685. to $439 094. 63-the latter represents the
purchase value, though the present value
will bring the amount up to nearly $455 900.
The feature of interest earnings, in most
instances payable semi-annually, has
brought profitable returns to the rank, the
sum amounting during the two years end
ing June 80 1888, to sum exceeding $4,000.
In connection with this subject, there
have been two important matters, regarding
which you no doubht desire to have some
information. The first of these grew out of
the failure of the City National Bank of
Fort Worth, Tex. At first many thought
that this claim would be a loss but the
board is pleased to be able to report that,
as ii has always maintained. the rank will
not lose a dollar of either the principal or
interest of this claim
Though according to the rule with refer
ence to the failure of a national bank, inter-
est on all claim ceases from the time of the
failure, yet the board recovered judgment
against the bondsmen for an amount greatly
in excess of what will be required TO pay
after the final dividend is paid by the re-
ceiver of the bank. Tie amount due from
the bondsmen is drawing interest at the
rate IF per cent. No transfer of real
estate can be made by the bondsmen since
the suit was brought except subject to this
fYndn hCi hN 1rlCI11O on
good for the amount of the judgment.
mo execution has yet been issued
against the bondsmen on the judgment OBJ
tanned. were advised by our attorneys
to delay such action until the amount that
they are liable for on their bond is definitely
determined which can not be done until
final action is taken by the Controller of
the Currency in settlement OF the banks
affairs.
vestment made by the Board of Control
in first mortgage gold bonds of the Lexng-
ton Hotel Building Company, of Chicago,
bearing interest at per cent.
These bonds are secured by property
worth more than three times their face
value. There has never been any question
in the minds of the members of the board
as to the unqualified safety of these Sc
curites. Your board is pleased to report
that as soon of the. equity Of redemption
expires. so that final and unassailabe title
can be given in the property the full
amount of the principal and interest upon
these bonds will be paid to the board. Mean
run"
That all of the representatives are not
yet entirely satisfied with the securities is
shown by two resolutions submitted to the
Supreme Lodge. One by Representative
Shively, of Indiana, was ruled out of order,
on the ground that the Supreme Lodge had
accepted Mr. Hinsey's statements 1t was
as follows: 1T is the sense of this Supreme
Lodge tfat the class of securities shown to
have been taken for loans of the endow-
ment funds are not such securities as COM
mend themselves to this Supreme Lodge,
and the Board OF Control is hereby directed
to change the securities for loans of the
endowment fund to securities in United
States. State and municipal bonds, readily
convertible into cash, as rapidly as the best
interests of that rank will permit
A resolution by Representative Kline, d-
recting the Board of Control to convert the
present securities into cash. was also ruled
out of order