The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1910-11-04
IRE GULA RITES
IN MANAGEMENT
OF SOCIETY
Investigation Of L'UniOn st
lean Baptist d'Amerique
MEMBERS IN VERMONT
Examiners Conclude that organza-
ton Is Solvent but Officials Have
Been Negligent

Boston, Nov. 4.-The report on the
joint examination by the New York
and Massachusetts insurance depart
ments of the fraternal beneficiary So
ciety known as L'Union st. Jean Bap-
tiste d'Amerique of Woonsocket, X.
l., was yesterday filed in such depart
ments. The examination was con.
Quoted by these states for the reason
that the laws of Rhode Island give the
insurance commissioner of that state
no power to examine insurance socie-
ties of this character. Conditions de-
yeloped show gross irregularities in
the management of this society,
which have led the examining de-
partments to bring the facts to the at
tention of the attorney-general, who
is the prosecuting officer of Rhole Is
land and, 1t is thought, again emp
hasize the necessity OF making appi-
cable to fraternal beneficiary socie.
ties that rigorous supervision requir.
ed by statute over all stock and as
sessment insurance companies.
LUnion ST. Jean Baptiste d'Ameri.
que was incorporated in Rhode Island
as literary society in 1900, admitted
to do business IN Massachusetts i'm
1901 and in New York In 1906, and at
the present time, in addition TO such
states, is operating in Maine, Yer
mont, New Hampshire, Connecticut,
Illinois and Michigan It has at pres
en.' 3O5 councils, approximately 25,-
600 members and S9,l31 900 of insur.
ance in force. its membership is. 10
q considerable extent composed OF
French-Canadian residents of those
states. Its assets. at the time of the
examination, aggregated S362.4S5 and
the excess of assets for the protect
ion OF members in lieu OF a policy re-
serve was found by the examiners to
be S26S.9l9.
The examiners conclude that, while
the society is perfectly solvent, there
has been negligence and misconduct
on the part of some Of it's executive
officers and that portion OF It's es-
tate and effects has been wasted or
lost. They call particular attention
to the shortage chargeabe TO Sec
rotary j. Ad Caron, amounting on
June 30 last to S32Si, which, however
has been In part made up; to a short.
age In the mortuary fund amounting
to at least S12,574, due to falsifica.
ton of the returns from the councils.
and recommend that the persons re-
sponsible for these shortages should
be compelled to make restitution.
The report also notes large invest.
ments In realty and in demand notes.
contrary to the Insurance laws of
Massachusetts and New York: the
making OF false annual statements IN
such states, and neglect of duty on
the part Of the officers of the society.
Mention is also made OF a systema.
tic Justification of records during the
past two years; of the issue of policy
contracts not permitted by the laws
OF New York and Massachusetts,. Of
disproportlonately large investments
IN reality and Of unauthorized loans
on promissory notes without collater.
ai-these investments alone repre-
senting nearly two-thirds of She total
assets of the society.
AS a condition to the further con.
duct OF business in Massachusetts
and New York, the insurance depart-
ments of those states have required
mat the executive board of the socle.
~ be summoned in special council
to consider the condition OF the socie.
" as shown In the report. that stems
be taken to guarantee in the future
an efficient system OF accounting so
as to safeguard receipts and disburse.
ments, that all moneys distracted
IRON the funds Of the society he nj
once replaced, that steps be taken 10
sell all real estate excepting The
home Office building, that an demand
notes be called in. that expenses be
cut down. that all forms of insurance
contracts not authorized by the laws
OF New York and Massachusetts he
discontinued, and that-to the end
thal such departments may be fully
informed as to the conduct of the so.
Vlety.-monthly reports be made 10
the departments Of these states until
further notice The departments are
informed that the secretary OF tho
society has resigned and that his res.
lsna'ion viii be acted upon at the
meeting OF the executive hoard IN ne
held on the Sth.