The San Francisco call., 1910-12-25
INSURGENTS OF
EXCHANGE Want
EXPENSE SHOWN
Merchants Discuss the Revolt
Against Dictat0rial Regime
of T. Cary Friedlander
Letter of President Rolph Rec
ognizes Necessity of Explain
alton of Assessment

In spite of the fact that it was
Christmas eve. with all It's domestic de-
rnands, yesterday saw little diminution
in the discussion of the revolt In the
Merchants exchange against the al
legged dictatorial regime of T. Cary
Friedlander in that Organization.
There are many things that the in
surgent members wish to have ex-
planned. Among them are the details
of the following items in the general
financial statement made by Fried
lander: Expense, $2,231; stationery.
s1,617; promotion, s1.51S." The total
of these is s5.s6e, or more than half
the deficit of ss,4s7.es during the fiscal
year ended June so, 1910. Such items
in the general statement are likened to
the ''sundries" or miscellaneous" en-
tries in financial statements of other
institutions and enterprises which have
aroused curiosity and provoked in
quiry. Curious members would like
something definite about the expense"
and the promotion" whatever the lat
ter may be.
Ii dOLfH
That some things had to be explained
was apparently recognized by President
James Rolph Jr. some time ago, for
early this month he had contemplated
calling special meeting of the whole
exchange, to be held January 6, but
the approach of the holidays suggested
delay in issuing the call. But he
issued a circular letter to members,
explaining the need Of the assessment
| hot IL IL -
head. The financial straits in which
the exchange found itself were indi-
Gated in this letter. Among other
things, President Rolph said:
Your old board of directors, apply
Ing the experience gained In the man
agement of the affairs of the exchange,
evolved a plan for the Improvement of
It's financial condition. The object of
the plan recommended was the liquida-
tion, first, of our notes payable, amount
Ing to $171,500, of which I inclose you
herewith an itemized statement OF
this amount the sum of $4,000 Is loss
caused by the great fire and not made
good by insurance collected, and the
further sum of $4,000 is indebtedness
incurred for betterments made in the
rebuilding of the property. Second, the
liquidation of our bonded Indebtedness,
amounting originally to s1500,000. We
are obligated to place in the sinking
fund $4,000 per annum.
ASSESSMENT PROPOSED
Your former board of directors, in
its final report, recommended urgently
that an assessment of 500 be levied
upon each member of the exchange for
the purpose of making a start in the
reduction of the old Indebtedness of
the exchange, and it is in pursuance of
this recommendation that the assess
ment now in process of collection has
been levied.
The finances of the exchange are in
such condition that it would have
been Impossible to rlcet the require
ment of placing $4,000 in the sinking
fund this year unless this assessment
had been levied. BY reducing the in
debtedness and consequently interest
charges the amount that will be avail.
able for sinking fund purposes will
correspondingly increase and, as a re-
suit, the value of membership will
become a more tangible commercial as
set in the hands of each member
I trust that this may explain salts
factorily to you the expediency and ne
cessity of this assessment"
INSURGENTS OBJECTIONS
The regulars defend the assessment
by saying that it is not wanted for
meeting any regular expenses of the
exchange, but to aid in meeting the
sinking fund for liquidation of the
bonded and other Indebtedness At
this the insurgents are inclined to
jeer, answering that the sinking fund
is part of the fixed charges and should
be met out of the regular income and
would be, if the regular incomes were
maintained at a proper standard and
the regular expenses kept down to
lower figure.
1t is said by some of the insurgents
ri "a 1la& =
politician that he has been so adroit
at electioneering that he has managed
to have elected each year a safe ma
jority of his friends on the board of
directors, at the same time shrewdly
erecting the election of two or three
members opposed to him in order to
lull criticism and avoid Inquiry. The
bylaws are likewise said to be largely
a reflection of Friedfander's ideas.
The special meeting which President
Rolph has announced his intention to
call after the holidays will offer on
portunfty to all to air their opinions
and a general threshing out is expected
at that time.