Fawcett v. Supreme Sitting of Order of Iron Hall

• Decision Date: 06 March 1894
• Citation: 64 Conn. 170,29 A. 614
• Court: Connecticut Supreme Court
• Parties: FAWCETT v. SUPREME SITTING OF ORDER OF IRON HALL.

29 A. 614

64 Conn. 170

FAWCETT

v. SUPREME SITTING OF ORDER OF IRON HALL.

Supreme Court of Errors of Connecticut.

March 6, 1894.

Case reserved from superior court, Fairfield county; Ralph Wheeler, Judge.

Action by John Fawcett against the Supreme Sitting of the Order of the Iron Hall, a corporation organized under the laws of Indiana, for the appointment of a receiver for the property of defendant in Connecticut. Edwin L. Scofield was appointed such receiver, and the branches of defendant in the state paid to him the funds in their possession. Such branches and James F. Failey, the receiver of defendant, appointed by the courts of Indiana, interpleaded and claimed such funds. Facts found and case reserved.

William F. Henney, Lucius P. Deming, James Bishop, and Henry G. Newton, for the Connecticut branches of the order. Henry C. Robinson, for James F. Failey.

BALDWIN, J. The Supreme Sitting of the Order of the Iron Hall was duly incorporated, under the general laws of the state of Indiana, in 1881. Its corporate purposes were defined, in the third of its articles of association, as being "to unite in bonds of union, protection, and forbearance all acceptable white persons of good character, steady habits, sound bodily health, and reputable calling, who believe in a supreme intelligent being, the creator and preserver of the universe; to improve the condition of its membership, morally, socially, and materially, by instructive lessons, judicious counsel, and timely aid, by encouragement in business, and by assistance to obtain employment when in need; to establish a benefit fund, from which members of the said order who have complied with all its rules and regulations, or the heirs of such member, may receive a benefit in a sum not exceeding one thousand dollars ($1,000), which shall be paid in such sums and at such times as may be provided by the laws governing such payment, or in the certificate of membership, and when all the conditions regulating such payment have been complied with." Its "proper officers" were to have "power at any time when a liability on account of the sickness, disability, or maturity of certificate of a member entitled to a benefit under number three of these articles occurs, to make the proper and specified assessment, under the prescribed regulation, to meet such liability."

By article 2, § 3, of the "Constitution" of the order, duly adopted pursuant to its articles of association, one of its objects was particularly declared to be "to establish a benefit fund, from which those who have held membership in the order for thirty days or more may, should they so desire, on proper application, and complying with all the rules and regulations governing said benefit fund, become participants therein, and may receive the benefit of a sum not exceeding twenty-five dollars per week, nor more than one-half of the sum total held by each member, when, by reason of disease or accident, they become disabled from following their usual occupation, or an amount of not more than one thousand dollars when they have held a continuous membership in the order for seven years: provided, however, that the sum total drawn from this order by any of its members shall never exceed, both in sick, disability, and other benefits, the sum named in the certificate of membership."

Among the "Laws of the Supreme Sitting," made pursuant to its constitution, were the following:

"Law I. Benefit Fund.

"Section 1. There shall be attached to this order a benefit fund, in which members may participate (except social members), as they may severally elect, either in the sum of one thousand dollars, eight hundred dollars, six hundred dollars, four hundred dollars, or two hundred dollars, on which they shall pay the rates and be entitled to the benefits prescribed in the following table. The members of the sisterhood branches (except social members) may participate in the benefit fund, as they may severally elect, either in the sum of six hundred dollars, four hundred dollars, or two hundred dollars, on which they shall pay the rates and be entitled to the benefits prescribed in the following table: provided, that all payments shall be made in accordance with the following sections, and in no other way or manner:

"Table of Rates and Benefits.

Amount

Weekly

Amount

Payable

Benefits

Paid on

Benefit

Paid

at

Paid at

Each

when

on

Death.

End of

Assessment.

Sick or

Total

Seven

Disabled.

Disability.

Years

not to Exceed

$2.60

$25.00

$500.00

$500.00

$1,000.00

2.00

20.00

400.00

400.00

800.00

1 50

15.00

300.00

800.00

600.00

1.00

10.00

200.00

200.00

400.00

.60

6.00

100.00

100.00

200.00

"Law II. Reserve Fund.

"Section 1. Twenty per cent of the amount received by each branch on each assessment shall be set aside and retained as a reserve fund. At the expiration of the first term of six years and six months from the date of the organization of the order, one-seventh of the reserve fund then on hand shall be called for by the supreme accountant, and used by the supreme cashier in the payment of benefits, and annually thereafter one-seventh of the reserve fund on hand shall be called for, and used in like manner.

"Sec. 2. Each branch shall have supervision of the reserve fund, and, when said reserve fund shall amount to fifty dollars, the trustees, in conjunction with the cashier of the local branch, shall invest the same in registered United States government bonds, county and city bonds, in first-class mortgages on real estate, or it shall be deposited at interest in some reputable savings bank: provided, that no loan shall be made for a longer period than six years from the end of the term to which said reserve fund belongs, interest to be computed, or paid, semiannuall. Should a loan be made on real estate, it shall be on first mortgage, and not exceed one-half of the taxed value of said real estate. No local branch of the order shall loan any portion of its reserve fund on chattel mortgages, and any local branch that shall allow its officers to loan any of the reserve fund or its accumulations contrary to law shall be declared suspended by the supreme justice, and shall not be reinstated until all funds are safely secured to the order as the law directs.

"Sec. 3. Each branch may remit its reserve fund to the supreme cashier for investment by the supreme trustees to the credit of said branch, charging him with the amount of such reserve fund so remitted for investment, and the supreme cashier shall receipt for the same on an official blank for that purpose. The supreme trustees are hereby empowered to invest said funds in accordance with section 2 of this law."

Law I.

"Sec. 2. When the amount received for one assessment, less the reserve fund, as provided for in law II, § 1, shall equal an amount less than one thousand dollars, the sum to be paid shall in no case exceed the amount of one assessment, less the reserve. In such case, if the member's certificate be in the amount of one thousand dollars, he shall receive not more than the whole amount of said assessment; if in the amount of eight hundred dollars, not more than four-fifths of said assessment; if in the amount of six hundred dollars, not more than three-fifths of said assessment; if in the amount of four hundred dollars, not more than two-fifths of said assessment; and if in the amount of two hundred dollars, not more than one-fifth of said assessment; and said amounts shall be all that can be claimed by any one."

"Sec. 4. Each member of the benefit fund, on becoming liable, shall pay to the accountant the amount prescribed in the foregoing table on account of the benefit fund, and the same amount on each assessment thereafter while he remains a member of this order. The accountant shall keep the date when such payment is made, and credit the member with the same in the books provided for that purpose.

"Sec. 5. The sum as prescribed in the member's certificate shall be paid to the member, his widow, or the legal heirs of said member, in case of sickness, disability, or maturity, and such payment shall be made as hereafter prescribed, and according to the conditions set forth in said certificate.

"See. 6. On the sickness or disability of a member, or the maturity of a certificate, the accountant of the local branch shall immediately notify the supreme accountant, upon the official blanks provided for that purpose by the Supreme Sitting, giving full particulars and the date of the last assessment paid by said member."

"Sec. 11. On receipt of duly-approved claims for sickness or disability or maturity of certificate of a member, the supreme accountant shall draw an order on the supreme cashier in favor of the proper person or persons for the amount due, signed by the supreme justice, and forward the same to the accountant of the local branch of which the beneficiary is a member: provided, that, in case of continuous sickness or disability, a member shall be entitled to present a claim for benefits at intervals of four weeks or less, and shall be entitled, when approved, to a payment on account of said claim, for which the member shall give to the Supreme Sitting a receipt in full of said payment, and in all cases it shall be charged upon the benefit fund ledgers of the supreme accountant and supreme cashier.

"Sec. 12. Upon receipt of the order for the payment of a sickness or disability benefit, or a matured certificate, the accountant shall immediately turn the same over to the person or persons in whose favor it is drawn; before delivering the order, he shall obtain a receipt in full of said payment on the certificate, and instruct the member to forward the warrant to the supreme cashier for payment provided, that in cases of the maturity of certificate, when the payment cancels the certificate, the certificate, duly canceled and attested by the officers of this local branch, must accompany the warrant for collection."

"Sec. 14. After paying any of the above...