The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-15
And Recommended That IL Make No
Further ATTEMPT to Cone
Time I'm business.
AUDITOR HARTs STATEMENT
LEGISLATURE SHOULD AMEND FRA
TERNAL INSURANCE LAWS.
No Company Can Live that Pays No
Heed to Mortality Rates-De-
velopments OF the Days

As predicted I'm yesterday mornings
Journal the Order Of Chosen Friends. one
of the largest fraternal beneficiary or
ganizations In the United States. with It's
main Offices In the Commercial building
OF this city, was yesterday placed In the
hands of q receiver. The application was
made in Judge Leathers's court by Attor-
ney General william L Taylor and Auditor
of State Hart, with K. d. Logsdon, a GER
tificate holder, named in the order as q
party to the suit.
Cyrus ]. Clark, ex-sherih OF Marion coun-
ty, was named by the court as receiver
and gave bond in the sum OF $4,000, with
the Union Trust Company as his surety
The attorneys for the order suggested
that Thomas j. Yount. assistant TO Thomas
Il. Linn, supreme recorder. be appointed
receiver. Yount was disqualified because
he is a stockholder in the order. and then
various trust companies and different men
were suggested, but the court finally ap-
pointed ex-sherifr Clark. The appointment
was very agreeable to the State and at
torneys and officers of the order.
AN INJUNCTION.
Judge Leathers also granted an injunc-
ton which will prevent the various lodges
ments levied and now In their hands 10
the treasury at Newark. N. J. Mr.. Clark.
Immediately upon his appointment as re-
ceiver Of the order. began making an in
vestigation OF the tangible assets now In
possession of the order. and sent tele-
grams to various councils of the order In
the large cities TO not pay money 10 any
one other than the receiver. Accompanied
by Mr.. Linn he will leave for New York
to-day to take possession OF the funds de-
posted to the credit OF the order In the
New York and Newark banks.
In making the application Attorney Gen.
eraI Taylor said he wished to impress upon
the courts mind that nothing was held
against Linn or Yount; on the contrary.
he spoke in the highest terms OF their
method of bookkeeping, and said that in the
investigation every item had been found
correct. Mr.. Taylor requested that they
be appointed to assist the receiver In clos
ing up the affairs OF the order.
AN EXPERTS REPORT.
The exact condition of the order. as re-
vealed by the investigation conducted by
the State auditor. are contained In the fol-
lowing statement made by George u. Bing-
ham, expert examiner in Auditor Hart's
office:
Complying with your letter Of instruc-
tion 1 have made an examination OF the
affairs of the Supreme Council OF the Or
der of Chosen Friends. found that owing
to the absence of the secretary in New
ark. N. j., for several weeks past checking
up the accounts of the treasurer of the
order the books are not written up to date.
and for this reason / have been unable TO
make as complete a report Of the financial
condition OF the order as desired In the
time given to the work At this date the
records show unpaid claims as follows:
Death benefits adjusted. -SS27. .4I7.04
Death benefits unadJusted... lo5 Sfs-o5
Death benefits adjusted. but wait
ing proof Of rights OF benefici-
ola age claims due at this date. 24I8.W
Total .s5il .zSs.l4
.@ro meet these claims the only assets
are as follows:
one hundred shares Of stock In
Home Loan and Savings League
of New York Cbook value).--...-.- N5zo0
Claim against bond of ex-treas-
urer ............-..-..-..-.-..- B,bo-ho
Assessments in process OF collec-
ton (estimatedD. D...-..-..---.--...... sosv!W
Total ...................... .sl3s 4os.s5
..In addition TO the above there Is some
cash in the hands of the treasurer. The
amount could net be ascertained FOR the
reason that his office Is In Newark and the
secretarys books have not been written
I'D 10 date for the reasons heretofore given
ION Nov. the amount was sz5.75 5s5i. but
this and the collections since have been
practically used UP by the warrants drawn
against IT. The receipts for the Novem-
ber assessment will begin to be paid to the
treasurer in few days. These are esti-
mated at $4,000. The returns from the
December assessment will not be rernitted
until the latter part OF next month.
OUTSTANDING CLAIMS.
..The claims against the order filed each
month have been for some time exceeding
the proceeds of each monthly assessment.
and the order is now eleven months be-
hind I'm paying Its claims. The former
treasurer was found TO be short in his ac-
counts ssi.sosS5. but I think most of this
loss will he recovered upon his bond
''It will be seen from the facts shown
above that there is no prospect OF the or
der ever being able 10 pay the claims now
due and in process of adjustment. and also
meet the current claims that viii be fled
from month 10 month from the proceeds
OF the assessments now levied upon its
membership. Under ITS certificate and It's
laws IL has the power TO levy an emergency
assessment TO meet these claims. but such
an assessment would be such a large tax
against each certificate that IL would al.
most certainly result In a lapslng or tho
entire membership.
.'The insolvent condition, shown from
figures given above. leads me 10 conclude
that the interest OF all those having claims.
a. well as the membership at large. Will