Waterbury Democrat., 1901-07-09
KNIGHTS OF PYTHIAS.
Examination of Insurance Depart ment Shows a Bad State of Affairs.


 ment Shows a Bad State of Affairs.
 Charles A. Hawley, actuary of the Connecticut insurance department, J. J. Brinkerhoff, actuary of the Illinois in- surance department, and Lucius Pfonfs and w. l.. Runyon, assistant ex- aminers, have given out their report, which they made jointly, of the ex- animation of the accounts of the En- dowment Rank, Knights of Pythias. The Endowment rank does business in this state and has its headquarters in Chicago. In it's annual report to the Connecticut insuraflce department the board of management of the rank showed balance for the years work. It showed in the statement of it's con- dition as of December 31, 1900, the ledger assets to be $512,S51.17 and the total admitted assets as $644,969.12. The liabilities were returned as $419,- 161 14, and the balance to protect con- tracts, $225, ,S07.9S. The examination made as of May 31, 1901, showed the ledger assets to be $474, ,907.64. The to- tai admitted assets were $334, ,S55. .S6. The liabilities were $560, ,12320 and there was a deficiency of $225, ,267. .34. The difference is $451 ,075.32.
 The examination was brought about by new board of management of the Endowment rank, who found that an oyerhauling was necessary. The ex- animation took about five weeks and it was made in Chicago. It was found that the rank lost much money in in- vestments in coal lands in Texas, in certain of its mortgage loans and in it's investments in the Lexington hotel in Chicago, and also in the claim against the City National bank of Fort Worth, Tex. Disbursements of small sums of money were made, for which no vouch- CTS could be found, and in the ex- animation also revealed the fact that for many years the rank, in reporting its cash on hand in it's annual reports to insurance departments, returned fictitious amounts, when there were actual oyerdrafts and a balance against it. The reports from 1895 to 1898, in- elusive, showed these overdrafts. A section of the report, which bears the signatures of the two actuaries and their assistants who made the ex- animation and which is dated June 24. 1901, says:
 1t is claimed by the officers of the En- dowment rank that it's members should have no anxiety as to the liquidation of all of its death claims for the reason that the supreme lodge, Knights of Py- thias, with assets aggregating $1O,O00,- O0O, together with a membership ex- ceeding $50O,000 stands behind every certificate issued by the endowment. 1t appears that there is branch of the order, the same as the Uniform rank Is part of the supreme lodge, and it's Of ficerS are subordinate to the supreme chancellor. The laws and rules of the supreme lodge support every power and authority granted to the board of control of the Endowment rank. and this, therefore, becomes effective as a guarantee for the faithful discharge If all obligations entered into by the board of control of the Endowment rank.
 The books and accounts do not reflect favorably upOn the past management. No system whatever has obtained, ey- en te the extent of emitting to proper ly balance it's accounts and the omis- sion of trial balance. It should be stated that the present management is not responsible for the condition of affairs detailed in this report, as the present officers assumed charge at a re- cent date. We believe that they have made and are making an intelligent and conscientious effort to enforce economy, correct the abuses found to exist and work reform and improve ment in the affairs and methods of the society.