Los Angeles herald., 1909-03-08
|EXPLAIN WHY
| ORDER FAILED
LETTERS THROW LIGHT ON
PENDO FINANCES
Supreme President Dandy Says He
Was Rulnously Misled by Report
Made to Insurance Com
missioner

A report on the books and accounts
of the order of Fraternal Champions
made by the Baskerville Audit COM
pany contains two letters written by
supreme officer which throw light on
the progress of the organization. In
one of these letters, written when the
body was known as the Order OF
Pendo. A. p. Tugwell, then its supreme
councillor called the supreme medical
director an old school crank" Mr..
Tugwell said in letter to Dear
Brother Fleet" in October, 1905:
Regarding Dr. Smith, l agree with
YOU he is a power in the council. but
we have a crank as supreme medical
director. who will hear of nothing but
the old school and old school methods.
I will tell you what 1 will do, however,
and 1 want you to consider this strictly
confidential Let Brother Smith send
in his application for appointment as
examiner. will have Brother Terry
issue his certificate if he will put the
letters M. d, after his name on all
examinations and documents he sends
| to this office"
In another letter written to SISTER
Johnson" in May, 1908, Mr.. TugWeil,
then assistant to the supreme president,
| explained the cHdDBc III bhC bdoio Va
| the order as follows:
"The reason of the change was it was
impossible for us to obtain organizers
to work for a pension plan. The death
rate of our order has been very heavy,
for the reason that the first six years
of our history we took in members up
| to so years old and were not very par
ticular regarding our examinations
| The result has been a large death rate,
land, in fact, at the time we turned over
we were paying $3700 month pensions
and sick and accident benefit or an
average of $500 a month. Our total IN
come was $4400. This, you see, was all
consumed by the benefits paid, with the
exception of about $100, which was not
enough to run the order"
| c. p. Dandy, supreme president OF
the Fraternal Champions, said last
night regarding the report of the audit
company which showed that Mr..
Dandy had advanced 500, ,475.44 in cash
to further the organization:
February 1, 1909, a meeting called by
a Mr.. Lincoln was held in his office
by persons interested in the matter,
and at that meeting I proposed that, II
they would appoint one person | would
appoint one and these two could select
| a third and II they would make a re-
port as they found matters in the books
/ would procure the books for them.
This meeting named MT Ll1colIl anu
1 named ]. H. Fountain, and they
came to my office and Mr. Lincoln
stated he did not wish to name the
third party, as his clients did not wish
| to pay another man. The two looked
over the books for a part of three days,
and two weeks later Mr.. Lincoln had a
report to submit which Mr.. Fountain
declined to sign, as it did not correctly
show the condition of the books. Mr..
Lincoln still declined to name the third
man, and 1 finally asked the Basker-
| vile Audit company to check the books
and the result is herewith submitted.
| "I took up the management upon the
showing made by the various reports
The one made to the insurance commits.
sioner January 1, 1908, and sworn tc
showed assets of $4,000 and liabilities
of $3.50, while in fact the liabilities were
nearly $4,000 and assets about $4,000.
Had the Order of Pendo been in the
| condition 1 supposed and was told II
was we could have put it in good con-
dition, and to show my faith in these
statements I put in $4,000 of my owr
money in irving to build it up"