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Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

Volume 2 - ElectricCanadian.com

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OFFICERS' GUARANTEE FUND 513The trustees were to be assisted in the management of the fundby an "Advisory Board," consisting of three directors orofficers of the bank. Each trustee was to nominate one memberof the Advisory Board, and the two members thus chosenwere to select the third. The members of the staff were to beliable for three kinds of contributions, termed Ordinary,Special and Guaranteed payments. The Ordinary contributionswere to consist of five annual payments, amountingin all to seven-eighths per cent, on the amount for which eachofficer was bonded. The Special contributions were not toexceed one-quarter per cent, in any one year, and were to becalled for only if the fund were depleted by losses below acertain fixed minimum, of $30,000 during the first five years ofits existence, and $35,000 after that period, or three per cent, onthe amount of bonds current. The Guaranteed paymentswere to be called for only if the other two classes of contributionsproved insufficient to maintain the fund at theminimum, and were to be repaid as soon as the fund wouldpermit. These last-mentioned payments were to be providedby each officer guaranteeing his proportion (based upon theamount of his bonds) of the sum of $15,000. In addition thebank was to pay $15,000 into the fund, to take the place of theannual contribution of $2,200 then being made towards premiums.The basis of the scheme was that fevery officer shouldgive his personal bond to the bank and that the fund shouldguarantee these bonds.The memorandum issued by the head office at this timestated that it had been the aim to make the risks of the fundfall equally upon the bank and the members, and to reducethe ordinary premiums to the lowest point possible. Thepremiums were stated to be lower than in any other schemethen known. It was not probable that the Guaranteedpayments would ever be required and it was hoped thateven the Special contributions would not be needed. Inevery respect the fund was to be independent, controlledequally by the officers and the bank. It was expected that

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