The advocate. [volume] (Charleston, W. Va.) 1901-1913, 1910-11-03

Fountain was held here at which
time, on demand of the Bureau of
insurance, w. L. Taylor was oussed
from the presidency and A. w.
Holmes was elected in his place.
1t was hoped at that time that the
order would be placed on a sounder
basis, but the real condition Of affairs
In the bank was not then known and
has apparently precluded such hap
Ply issue out Of all it's troubles.
The orders success was phenome-
nal from the start. Thousands of
members tiocked to its standard, and
| there are now nearly $500 subor-
dinate lodges scattered over the
Southern and Middle States and in
the Middle West.
In 1888 the Savings Bank was
| chartered. Stock was subscribed to
by individual members Of the order.
The charter of the bank provides
that its board Of directors shall be
the board of directors Of the True
Reformers. jstock was sold on the
condition that at the death of the
stockholders no provision was made
| for It's resistance.
49,. Checks. Held Up, o,. .
For some time complaints have
been coming to the Bureau Of In
surance as to the non-payment of
insurance claims by the True Re-
formers. AS long as a year ago Of
1cials Of the department warned the
| officers of the allied institutions that
| unless they dropped the bank it
| would sooner or later involve the en-
tire enterprise in disaster. But moth
ing was done. However, last spring,
prompted by many complaints the
department held an examination and
found that the bank was holding up
checks for more than $4,000, drawn
| by the treasurer of the order and
accepted by the same man as cashier
OF the bank, but placed in q drawer.
The checks had been charged off on
| the books Of the order, but the bank
could not pay the money. Acting on
demands made by the insurance peo-
| pie, a piece Of property was sold,
| and these claims liquidated. But ap-
parently no lesson was learned from
this experience, for the same condi-
ton Is now found to exist.
The Bureau of Insurance has been
constantly hampered because Of It's
lack Of authority to examine the
bank. The order would show that it
had certain amount to It's credit
with the bank, but the actuaries of
the department were unable to dis
cover, whether or not the bank could
put up the amount If required.
Joint Examination.
When the State Bank Examining
Department was organized during
the past summer, under the new law,
the Insurance Bureau requested that
an examination be made of the True
Reformers' Bank, which the new de-
partment, with many calls on It's
time was unable to do at first, At
last, however, the examination was
begun on Tuesday of last week, and
1T was made a joint one, Actuary
Isaac Davenport being sent to look
into the books Of the order, while
Examiner G.. G. Barksdale was hay
ing glance at the bank
BY the next day the condition Of
affairs had become 80 evident to the
examiners that the Bureau Of Insur-
ance ordered the officials Of the True
Reformers not to put any more mon
ely belonging to the order on deposit
with the bank. Since that day all
moneys belonging to the order have
been placed in another bank AS the
examination progressed 1t was found
that while the books are not In such
condition as to permit an accurate
statement to be made, the amount
due the order Is approximately 1896,
100, Of which $274,000 is in depos-
it's and $61,100 in money borrowed
by the bank from the order.