The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-03

he used the funds OF the society to pay for.
the 'Cambon dinner (Which he subsequently
returned; that he conducted and partici-
pated In the profits Of the syndicates de-
scribed in his letter Of April ~. 1906, having
frequently as a member OF the executive
committee voted for the purchase Of such
securities as shown in said letter in detail;
that he is indebted to the society to the
amount Of the profits he has received as
shown by his letter; and that he has been
guilty of other irregular acts, irregular in
the sense that they are not In accordance
with the society's law or with sound business
practises, treating the society and its affairs
largely as if they we're his own personal
concern"
In conclusion the report says:
RADICAL REORGANIZATION DEMANDED.
AS to the other officers Of the society,
the committee, finds that a general loose.
ness has previ!ed in the administration OF
the society's affairs requiring prompt and
thorough rectification, and that there Is
general lacking in the organization OF that
strong moral fiber SO essential for the ac-
complishment Of satisfact DRY results;
cietys methods Of doing business are un-
systematic and should be corrected; that
the cash balances carried by the society are
excessive; that the society's alliances with
financial institutions are unnecessary and
undesirable in the conduct Of it's legitimate
rectly and through financial institutions
in which the society Is interested are ex-
cessive, and that the socetys efforts should
be directed to conducting strictly legiti-
mate life insurance business at the lowest
cost to the insured along the general lines
hereinbefore indicated.
"The imperative need in this and all other
similar associations Is more lively sense
Of the true nature Of the relations existing
between the society and the assured and
H,yt
both.
when we consider that the fabulous
accumulations held by such associations
represent voluntary tax placed by the
provident upon their lives. and when we
recall the tremendous self enial and sacri-
secure provision against the inevitable,
then we begin to realize the high and deli
cate nature Of the trust involved In the
administration Of such fund.
administration and normal progress should
be practised. Excessive salaries, excessive
commissions excessive expenses and super
tluous offices should not be tolerated.
Investments should be carefully made
and all the useful formal precautions en-
poyed to insure the location Of the moral
responsibility of the officers who are charged
with the duty of making them.
1.-THE committee, having pursued it's in
vestigation Of the present Management Of
the society sufficiently Tar to convince 1T
that the personnel Of the management
should he radically changed and the
methods of conducting the business Of the
society brought hack to sound legal and
ethical lines. begs to be relieved from fur
Their duty.
recommend that further Investigation as
indicated in it's chairman's letter Of, April
s to MIR. Alexander, which the committee
did not find necessary to pursue before
making this report, be proceeded with
by reorganized management whose i'm
mediate connection with the sources OF in
formation, undivided time for the work
and personal responsil ility for the future
management will enable them to conduct
the investigation more thoroughly. ex.
Re possif lie for the committee to do. The
committee also recommends that the new
management have thorough audit made
Of all the society's books and records.
WOULD GUST ALEXANDER, HYDE, TARnEIL.
IF other Irregularities in the present man
agement are brought to light they will be
only cumulative and therefore could not
of the conclusions expressed above.
pal officers of the society carry with them
the highest measure Of responsibility.
dent, vice president, and the second vice
president have fallen far, short Of their
duty both in acts Of commission and omis-
sion, and changes in these officers should
be made. The loose and irregular methods
obtaining in the management are largely
due both to the example of the acts and the
example Of the neglect Of these officers.
The shortcomings in inferior executive
officers are largely due to the methods
which the principal officers have encour-
aged or permitted, and so far as correc-
ton of these irregularities calls for further
ranoyals If officials that matter should
be dealt with and largely controlled by
the Judgment of the reorganized manage
ment."