New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-12
| CHURCH FUNDS SECURE.
TRITsT FUNDS REPLACE INDIVIDUALS
AS THE CUsTODIANs.
p,s,,op porTERs ADDRESS PRODUCTIVE
OF RADICAL CHANGE IN EPIs-

-, h.r.s cane from Bishop Potters address
last fall before the 10th convention OF ,he DoO
OF New-York In that address Bishop fo''ei 20.
he was constrained to speak OF another mater
because of the growing Importance ana s'"'
osnocts OF the interests involved in It, rev years
nra,,o,s IN a charge on the duties OF wardehs
and vestrymen he pointed out the serious re
.nonsibities Of these officers Of the church az .ne
trustees and guardians of It's corporate pfope'"
The Bishop said in his address,
The time has come when 1t is plain that ousnf
cS Concerted action by this convention as shall
recognize the especial sacredness OK al ~ ali
created for the due eare aR pven to God for
work OF His Church in this diocese IN w,ra.nsd
relation and Tor TOR etsSss in this Connection
omen 10 grave criticism and that they have issuea
must sometimes be owned dishonoring resus
There is too often great looseress unpardonanie
S Sa n Is an evil in which there is un,
doubtedy very often. in individual cases no evil
intent n,r Dsd 1 to chill generous impulses and
greatly TO dscredit our whole fellowship IL can,
th's Convention 10 take such action in the matter
OF all diocesan trust funds as shall secure tnen
most scrupulous guardianship and then their WIS
nst emnIoyment FOR the various ends for which
they were contributed I ask you. brethren 10
give this matter your Immediate ana eA'"e'' AZ
tention.
BISHOP POTTER APPOINTS COMMITTED
George Macculloch Miller trustee Of the Epis-
conal Fund told a Tribune reporter yesterday that
mi. utterance OF Bishop Potter was caused by the
fact that moneys belonging to churches or chari-
ties had been lost by the ineficiency OF those IN
charge and 1t was thought TO be OF the highes'
Importance II the Church were to expect endo"-
ments Of such projects. that people should De as
sured that their money would be In all respects
safeIv guarded as we'll as wisely invested That
was what led 10 the recommendation OF the blshop.
On the opening OF the convention. after Bisnop
Potter's address had been read. MT Miller pre-
sented a resolution. which was adopted 10 the
effect that the portion OF the Bishops houfesS
referring TO the care and management Of the funds
and societies for which the diocese Is directly OF
indirectly responsible be referred to committee
Of Ave to be appointed by the Chair. with re-
quest that report upon the same be made at the
next mornings session. to the END that hcuoh
might be taken regarding the Same before the
adjournment OF the convention. The Bishop APP
pointed as such committee George Maccuoch Mil
Ter J. Pierpont Morgan William Watts Sherman
George Coppell and the Rev. Dr W. ~ iA1e
ton
On the following day the committee repoi'eu
that. understanding the scope OK Its DUTY 10 Do
the consideration Of the custody ana salekeepihs
OF securities and money representing capitai,
methods for prompt and judicous investment OF
capital; the safe and economical coliecuoh anu
disbursement OF income; guarding against unau-
thorized or jnjudicious expenditures, and protec-
tion from misappropriaton OF securities or money
II recommended that the corporations and socleues
referred to should arrange and contract WI" /"
trust company OF assured responsibility and stand
ing for the following service;
The custody and safekeeping Of the money ana
securities representing capital; the investment Oh
capital under the advice and direction OF com com,
mttee OF the corporation or society 10 WHICH SUI 80
ipcome under regulations to be agreed upon be-
tween such trust company and the soslety VI
possIble TO act as treasurer assistant treasurer
for the corporation or society contracting WITH IT,
II was also recommended that each OF the cor
porations or societies referred to adopt the custom
Of recurring two formally authorized signatures
TO every check or draft given in its name and that
securities always be taken and stand In the cor
porate name OF the corporation or society 70
which such securities belong. and. when pract-
cable be registered in such name
Mr. Miller said that in pursuance OF the action OF
the convention OF 1898 large number OF the nstitu-
lions referred TO had made arrangements this year
with the trust company which the convention
recommended Although the Cathedral OF ST. John
the Divine is not one OF those institutions. II also
had made with the Union Trust Company similar
arrangement.
Mr. Miller added that he also advised that
other institutions controlled by churches or other
denominations, and various charitable institutions
independent OF church control. were considering
to the administration of their finances and the care
OF their securities. The charge Of the trust com
pany for services said Mr.. Miller. has been from
to 2z per cent on the income alone. 80 that In no
case is the principal impaired by the charge
DEAN HOFFMAN ON THE CHANGE.
Dean Hoffman. Of the General Theological SEMI
nary member Of the standing Committee on
Trust Funds of the Domestic and Foreign Mis-
sionary Society OF the Protestant Episcopal Church
said:
In holding and handling trust funds the practice
FOR Years has been to leave the whole thing in the
hands OF the treasurer. II he happened 20 9e
TO paw current expenses and trust TO collections 10
make II up. A change was instituted In the Churcn
trust funds should be placed in the hands of a
committee. whose business should be to keep them
10 pay the income from time to time to the
This was in 1879 and now the last report from that
committee shows over a hundred dimereht tru nh
cannot be touched. In twenty years handling Of
those funds there was never lost dollar OF IN
This method has been adopted I'm most OF our In
stutons but we have gone step inrtheI we we
to advise. and il changes from time time but
ties of the trust funds and is responsible for their
satekeepng THIS is Bile OWING y 10 sss a
t TO take charge Of the funds
Some time ago / advised the students OF the semi,
nary to keep out Of all OF church funds and
10 leave TO the wardens and vestrymen the parish
expenses and collections The officials of the
parish should handle and manage those funds. and
II anything goes wrong they will be responsible.
Twenty years ago there was great laxty In book
keeping but by putting our money In the hands OF
trust company we save risks The company.
moreover, can invest the money more economically
than ! believe the American Bible Society
and the American Tract Society adopted the COM
mittee plan years ago. The principle is to keep the
funds out OF the hands OF a treasurer. Most cor
porations who leave money In the hands OF O treas
urer suffer. and II is not right to put temptation
In mans way. Large amounts OF money which
not be In the hands Of any one individual. for the
history Of many societies shows that when treas
urer is short he will sell the securities You
not throw too much security around trust funds
held for specific purposes.
METHODIST BOOK CONCERN CASHIERS
At the Methodist Episcopal Mission House It was
stated that the treasurer the custodian OF the
funds OF the society but while he does draw the
money from the bank where 1t Is deposited he has