Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1901-07-13
PYTH|AN FUND Deficit
Former President Hinsey Called on
to Explain.
SUPREME LODGE OFFICERS ACT
Steps Taken to Probe Into the Disappearance
Half Millions Belonging to the Endow-
ment Rank-Plan TO Make Good
the Loss and Provide a Surplus.

the Loss and Provide Surplus.
Chicago. July Il.--John A. Hinsey
was ordered last night, by the Su-
preme Lodge of Knights of Pythlas,
to appear before that body and show
cause why he should not be expelled.
This follows as direct result Of
the alleged irregularities which the
new management of the endowment
rank has found in the books under
his twelve years administration as
president of the board of control.
The Supreme Lodge of the Knights
of Pythias adopted, by vote of 1870
to /, the report of the supreme chan
cellor, with all its criticisms of Mr..
Hinsey management and ordered 1T
published as an official record of the
condition of the endowment rank.
Mr.. Hinsey, the central figure in
all the trouble, talked three hours be-
fore the Supreme Lodge, but his ex-
PLANTATION did not satisfy his judges.
Congressman James Il. Watson, of
Indiana, moved that Mr.. Hinsey should
be ordered to appear and show cause
why he should not be expelled from
the Supreme Lodge,
Mr.. Hlnsey had tried to forestall
this action by sending in his resigna-
ton as a member o. the board OF
control of the endowment rank. This
resignation was laid on the table.
Then the debate on the rule to ex-
pei began. There was no one to
defend Mr.. Hinsey but himself. All
wanted his expulsion, apparently, but
many delegates argued that the Su-
preme Lodge could not expel men,
Der without trial in the constituted
courts of the order 1t took until late
lastnight to decide this point.
TO MAKE GOOD THE LOSS.
Though $500, 600 assets are in bad
condition, and though the rank is
almost S5000,0 90 behind hand in the
payment of death claims, the Su
preme Lodge doe not propose that 1t
shall lose standing because OF the
troubles that have been disclosed.
Already, by a unanimous vote Of
the lodge on second reading, anorder
has been made that in the future no
investments shall be made save by
written orders of five out of seven
members of the board of control of
the rank. This will be formally
adopted tomorrow, and no one man
agement will be possible in the fu-
ture.
In addition to this a resolution is
being considered to raise the rates OF
payments on insurance about 90 per
cent, so that more funds will be
provided to meet death claims and
enough in addition to make good
the losses and create a surplus in the
future.
If this additional burden on beneti
Charles of insurance policies shall not
be enough the Supreme Lodge Will al
so consider a plan to assess all
Knights of Pythias so cents or 81
ca oh for the benefit of the rank. The
lower assessment on 800, 600 members
would bring in $3.50, 600.
This money would not be paid di-
rectly by the Pythians, but would
come from the $500, 600 of reserve cash
and bonds held by the grand lodges,
subject to the, orders of the Supreme
Lodge The Supreme Lodge has over
$40, 600, 900 of property altogether, and
is responsible for all obligations of
the endowment rank.
PYTHIANS UNDISTURBED.
Local knights OF Pythias, who are
members of the endowment rank
of the order, are not alarmed at the
published reports from Chicago, sug-
costing that the surplus fund of the
endowment rank has been wiped out
bv bad investment. The condition
of affairs in regard to this fund.- as
reported TO local Pvthians and accept
ed by them, is that the securities in
which the surplus fund has been IN
vested are of such IA character that
they cannot be realized upon at once
withouta loss. Recently there has been
an extra assessment on the member
of the endowment rank here, as else
where, but as this is only the sec ond
extra assessment in fifteen years, it
has not been source of alarm.