The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-10-27

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the colored race in America could have
produced more profound shock or
could be more far-reaching In its effects
than the suspension OF the license OF
the Grand United Order OF True Re-
formers. which was done yesterday af-
ternoon by the Bureau of Insurance of
Virginia. The True Reformers Is at
once the largest, the most prominent,
and has hitherto been regarded as the
most successful Of all the coiored se-
cret societies in the world. around
whose existence so much of the activity
OF the race centres #
This big financial and fraternal or
'ganization was brought to its fall by
the crash of the Savings Bank of True
Reformers, an allied institution. which
yesterday applied for receiver in the
,Chancery Court Of the city OF Rich-
2mond. The crisis was forced by an or
der issued on Tuesday by the Bureau
of Insurance requiring the True Re-
formers eff1cers to appear this morn
ing at 10 o'clock to show cause why
Its license to do business should not be
revoked.
sll9s Ties Up business.
The suspension OF the license IS abso-
lutte. The order. as issued yesterday
by Deputy Insurance Commissioner ],
N. Brenanan, sets forth that action is
taken "on account of the gross mis-
It not criminal negligence.
of Its present and former management
in safeguarding It's funds.
All fees and dues of applicants INF
.tiated after this date are to be returned
Immediately; No applications for ben-
eficial membership In any branch of the
association must be considered or any
limitations permitted in this State while
the order is effective.
Still out Of the wreck Of the insur-
ance society, the bank and the allied
industrial and mercantile concern, the
Bureau OF Insurance hopes to get
enough salvage to permit the True Re-
formers to continue in business as an
Organization. From all ac-
counts. 1t is Impossible that the bank
can ever again reopen Its doors, but
the fraternal association has always
been In good circumstances. and would
have to-day been in splendid finan-
.cial condition but for its alliance with
the bank and other enterprises.
Has Lost Money.
The whole trouble has arisen from
the apparently irresistible tendency OF
negro insurance officials to S tart banks
and later to engage In other lines of
business, which usually take the money
earned by the original or parent order.
In but few instances have such plans
succeeded.
With a membership of approximately
10000, nearly half of whom are tnsVir-
.glnia and the others scatterede over the
Atlantic States, the True Reformers'
officials have, either through Ignorance
and gross nlismanagement, or, IS the
order OF the Insurance Bureau inti-
mates, s'if not criminal negltgence,"
succeeded in so disposing Of thessassets
as to make 1t doubtful II the rder can
again resume business, t may be
wiped from the face Of the earth.
taking with 1t the hopes and labor
and dollars OF 10000 members. repre-
senting in a large degree the sober.
thrifty element Of the col
ored race in America.
n Unfortunate as Is the liquidation OF
the Savings Bank. 1t Is as nothing at
ali compared with the CONSERVATION
and dismay which will pervades the
negroes Of the Atlantic States at the
troubles Of the insurance society,", and
no doubt the public will join in the
hope ofSthe Insurance Bureau that the
order may yet be set on IS feet.
Condition Is bad. sss Nj
Nothing can more forcibly depict
the financial condition Of the ow de-
funct bank than a brief tatement Ac-
cording to Its own published statement
to the State Corporation Commission,
sRof date September Ast !, 1t had
total deposits of $780, 46S.34, including
time certificates, deposits su bject to
check and cashiers checks outstand-. y.
ing. Yet the Grand Fountain OF True
Reformers alone has on d eposit at
this bank approximately $374.O00. and
In addition the bank owes " TIL 9 order
$61,1O0 Of borrowed money, making a
total which is due the ord der by the
bank Of about s335 co. & 4, III i5i55 4
81. The alleged bookkeeping methods OF
the bank beggar description. Mort
gage loans are twisted n In every con- -
Way showing as assets when
they are really In possession OF out
aide banks as collateral. (; securities for
loans which the bank has G contracted.
Money has cen poured for a II ong time
into an allied concern known as the,
Reforlners' Mercantile and Industrial
Associate which runs 4 a # chain OF
stores and printing office. For all
this s8mismanage cement and loss the In
surance ord er has had to pay, as IL It's,
funds have b an US cd I. .ss The n e gro nai,-
ayers have apparently y been 8 totally
unable to realize that they have three
distinct ganizations, but have per-
sistentlY regard led the business enter.
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