GrB 
OF A 
SPECIAL MEETING 
OF THE 
Army Mutual Aid Association 
HELD AT THE WAR DEPARTMENT, 
November 18, 1896. 
ALSO THE 
CONSTITUTION OF THE ASSOCIATION 
Adopted at that Meeting. 
WASHINGTON, D. C. I 
Gibson Bros., Printers and Bookbinders. 
1897. PROCEEDINGS 
OP A 
Special Meeting of the Any Mutual Aid Association. 
War Department, 
Washington, D. C., November 18, 1896. 
Proceedings of a Special Meeting of the Army Mutual Aid 
Association called by the Executive Committee in Circular of 
Octobei 10, 1896, held this day in the office of the Inspector- 
General of the Army. 
The meeting was called to order at 2 p. m. by General E. C. 
Drum, President of the Association, in the chair. 
The roll having been called, 36 members were found to be 
present, representing 799 proxies. 
The members present were 
Captain Thomas H. Barry. 
Captain Eogers Birnie. 
General Samuel Breck. 
Captain Charles H. Clark. 
Colonel Samuel T. Cushing. 
Captain Edward Davis. 
Major George W. Davis. 
Captain David Du B. Gaillard, 
Major E. A. Garlington. 
Colonel Alexander Mackenzie. 
Captain Crosby P. Miller. 
General Michael E. Morgan. 
Captain James Kennington. 
Captain Edward Lynch. 
Captain Theodore Mosher. 
Lieut. Carl Eeichmann. 
General Charles G. Sawtelle. 
General George M. Sternberg. 
Colonel John M. Wilson. 
Major George W. Adair. 
Captain Walter Howe. 
Major Jacob B. Eawles. 
Lieut. Thomas Cruse. 
Captain William P. Atwell. 
General Eichard C. Drum. 
Major William. P. Huxford. 
Captain E. G. Eutherford. 
Captain James A. Snyder. 
Captain Thomas E. Tobey. 
Captain Thomas G. Townsend. 
Major John G. Turnbull. 
Major Daniel Madden. 
Captain Matthew Markland 
Captain William A. Miller. 
Major Benjamin F. Bittenhouse. 
General Thomas M. Vincent. The President : I will now call on Major George W. Davis 
to read a couple of letters he has, and also to make a few re- 
marks and comments on them. 
Major George W. Davis : Mr. Chairman, the letters I have are 
one from Colonel Elmer Otis, XL S. Army, retired, and another 
from Major B. F. Pope, of the Medical Department. In the first 
I find stated as follows : 
The Secretary and Treasurer, 
San Diego, California, October 31, 1896. 
Army Mutual Aid Association, 
War Department, Washington, D. C.: 
Sir : I have carefully read the proposed amendments to the constitu- 
tion, and vote for it, notwithstanding it increases the yearly amount I have 
to pay. But I think there is an injustice done us old fellows who have be- 
longed to the Association for years. It seems to me that we ought to be 
assessed according to the age at which we joined. Take my own ease for 
example. I joined when the Association was very young, and took all the 
chances of its success, and, after years of paying my dues, I have to pay now 
according to the advanced age of 64 years, instead of the age in which I 
joined ; whilst those who now join are assessed according to the age in 
which they may join. When I joined, the assessments were not to be in- 
creased ; and I think it was a great mistake to have ever changed the con- 
stitution to its present status. Then when they have been changed they 
propose to change them back again to where they were originally, leaving 
me to pay the increased assessments. 
Very respectfully, 
ELMER OTIS, 
Major Pope’s letter is as follows : 
Col., U. 8. A., Retired. 
Angel Island, California, October 28, 1896. 
Major B. F. Eittbnhouse, U. S. Army, 
Secretary and Treasurer, Army Mutual Aid Association, 
Washingto7i, D. G.: 
Dear Sir : Inclosed herewith you will find my request that Major Charles 
Smart, Surgeon, U. S. Army, may, as my proxy, east my vote in the negative 
on the proposition to adopt the proposed new constitution, as submitted by 
the Committee on Revision in their report dated April 27, 1896. 
While I can readily see that it would be for my personal interest to cast 
an affirmative vote, still I believe that the best interests of the Association 
will not be met by changing from an advancing term to a level premium rate 
of assessment. There seems in all this discussion to have been no con- 
sideration of the fact that our Association has a peculiar and very limited 
field of operation, and 1 sincerely believe that by the adoption of the “ level 3 
premium ” ratio system proposed, we will drift into the very hole which 
we are trying to avoid that of a simple uniform benevolent beneficiary 
rate. To make myself more clear I will submit the following interroga- 
tories : 
Ist. As the maximum age of admission is to be placed at 45 years, will 
it not, under the proposed plan, result that, as time removes all members who 
are now above 45 years of age, the maximum assessment and ratio will be 
lowered from 437 to 186 ? (See Exhibit “B,” page 31 of report.) 
2d. Should the number of eligible and desirable candidates for admission 
to the Association, who may be between the ages of 45 and 30 years, become, 
by energetic and persistent effort, gradually exhausted, will it not also result 
that in time, under the proposed system, the maximum ratio of assessment 
will be again lowered until it is reduced to 115 ? Carrying the hypothesis to 
its ultimate, may it not result that, as the average age on admission 
gradually and inevitably decreases, the lowest ratio—viz., 100—will be finally 
reached ? In other words, will not the plan of level premium, whether 
fixed or on a sliding scale of ratios, by its own working, in time evolve itself 
into a uniform rate of assessment in which distinction of ages is wholly 
ignored or lost ? With a constantly depreciating ratio and a constantly 
appreciating premium, would it not result that, in order to collect a single 
benefit of $3,000 from a membership of 1.000 officers, an assessment of $3 
each must be levied from all the members, without reference to ages, because 
every one of them will have joined the Association at or under the age of 
25 ? It must not be forgotten that we have not, as in the case of civil insur- 
ance associations, an unlimited field from which to recruit our membership ; 
and should we ultimately gather in, as we hope to do, every eligible and 
desirable officer now in the service, our future accessions must practically 
be restricted to officers newly entering, whose ages will probably be under 
30 years, and whose ratio is to be fixed for life at the age of entrance. Again, 
I ask, what is to prevent us from gradually drifting into a uniform-rate 
fraternal beneficiary association, the very hole from which we have tried to 
escape by adopting the 5-year-term advancing assessment? 
It seems to me that the level premium ratio system, as proposed, is not 
applicable to existing conditions, and should not be adopted by us. My in- 
dividual preference would be to select the yearly term advancing rate of 
Fouse (see column 9, Exhibit “A,” of report), fixing the maximum ratio at 
64 years. 
By the Fouse one-year term, the ratio of assessment at 64 years would be 
to that at 25 years as 214 is to 45, or 4.75 (see Exhibit “A” of report); by 
the level rate table proposed, it would be for the same ages as 437 is to 100, 
or 4.37 (see page 23 of report). Expressed in money values, the member by 
the level premium plan would pay at 64 years of age for one assessment 
$4.37, while by the Fouse term plan he would pay $4.75. At the age of 
.i 5 he would pay sl, fixed for life, while by the Fouse plan he would pay 92 
cents or less, but increasing yearly with age. until he reaches 64, when a 
permanent rate would be attained. This I certainly conceive to be the 4 
better of the two plans, and the one that should be adopted by the Associa- 
tion. I would request that, before my vote is cast, my letter may be read to 
the meeting, and, if possible, considered by the members present. 
Very respectfully, 
Your obedient servant, 
Major and Surgeon, U. 8. Army. 
B. F. POPE, 
Major Davis remarked concerning the letters just read: 
Mr. Chairman and Gentlemen : In respect to the letter of Col- 
onel Otis, wherein he claims that men who have been members a 
long time ought to have that circumstance considered in deter- 
mining a rate of assessment and to have a reduction from the 
theoretical equitable rates for new members of their own age— 
this on account of the fact that they have been contributing to- 
ward the benefits paid to the heirs of their deceased comrades 
for 10, 15, or more years—l would answer that that very feature 
of our case and the equities of the older members Avere considered 
by the Special Committee on Revision of Rates, and the pros and 
cons of the question are stated in the text of our report at con- 
siderable length. 
In a general way it may be said that any plan of revision of 
assessment, which, unfortunately, is another name for reorgani- 
zation, must be based upon a middle ground ; there must be con- 
cessions on all sides if rates are to be made that can be maintained. 
It is never possible, in any reorganization, to respond to all con- 
siderations of equity; that is so with corporations, and I think 
that our experience justifies me in suggesting that the issues now 
before the Mutual Aid Association are not unlike those which 
confront reorganization committees. 
The older members have been members since organization ; they 
have had their risk carried all these years—the same as they have 
had, by payments to fire insurance companies, the risk on their 
dwellings or other combustible property carried by the fire un- 
derwriters. The buildings have not been destroyed, but their 
premiums have protected them against possibility of loss in event 
of their destruction, and so they are not losers. The older mem- 
bers of the Mutual Aid Association have paid their assessments, 
and in return have had their life risks carried. 
Please assume that this Association now decides to go out 5 
of business. It is well known that we have in the treasury about 
$160,000. That represents the assets of this Association—the 
whole cash accumulation since wTe started—and these assets be- 
long to the members. If we go out of business, all would then 
receive their equitable share of this reserve; but a computation 
shows that the oldest member would receive, as a dividend, not 
to exceed $175 as his share of this reserve. Such study as I have 
been able to give to this matter leads me to the conclusion that 
this represents the equitable interest that the older members 
have, and their shares would be fully discharged by the small 
payment I name. 
Major Pope raises two points. The first, “ Will it not, under 
the proposed plan, result that, as time removes all members who 
are now above 45 years of age, the maximum assessment and 
ratio will be lowered from 437 to 186?” That question is evi- 
dently based upon the belief of the writer that any man who 
intends ever to join will do so at the youngest age possible. 
That belief presupposes that the experience of mankind in re- 
spect to life insurance will be reversed in the Mutual Aid. If 
the Major’s supposition should be realized, and all should join at 
the age of 25, there would be, it is true, but one rate of assess- 
ment for all to pay. We all know that any such experience has 
never been recorded in the past. I think it is a fact that the 
average age of admission of members to civil insurance com- 
panies, conducted on a basis of “ level rates,” is about 40 years. 
I think the statistics show that that is about the average age of 
admission, and that many more take out policies between the 
ages of 35 and 45 than between 25 and 35. I therefore think 
that Major Pope’s query should be answered in the negative. 
The second question is in part a restatement of the first. 
“Will it not also result that in time, under the proposed system, 
the maximum ratio of assessment will be again lowered until it 
is reduced to 115 ? Carrying the hypothesis to its ultimate, may 
it not result that, as the average age on admission gradually and 
inevitably decreases, the lowest ratio—viz., 100—will be finally 
reached ? ” I answer that it would if his presumption is sound; 
but, as I before remarked, that seems to be an impossibility. 
Major Pope asks further, “ What is to prevent us from grad- 
ually drifting into a uniform-rate fraternal beneficiary associa- 6 
tion, the very hole from which we have tried to escape by adopt- 
ing the 5-year-term advancing assessment?” 
When this Association began its career there were two rates of 
assessment proposed. There are but few of the original mem- 
bers now present, who were present when we met together on a 
winter night at the Army Medical Museum, on Tenth street, and 
started this Association; but, as I remember, fraternity was the 
predominating feature adopted in our agreement to form an Army 
Society, and it was attempted to carry forward the Association on 
that plan. It had not been in existence a year before clamoring 
was heard that these rates were wrong. Major Pope says, in 
effect, that it was understood, when he joined, there was to be no 
change; yet the constitution to which he subscribed contained a 
provision specifying how the constitution might be changed. 
The first change brought five rates of assessment into use, and 
yet it was shortly claimed that those were inequitable, and another 
change was made, and rates, that are substantially the same as 
those we are now living under, were adopted, but with a provis- 
ion for the accumulation for a reserve that would by this time 
have built it up to at least one-third of a million dollars, if the 
provisions governing that reserve had not been modified. 
We are now confronted by a situation that may be compared 
to a reorganization. If the Association is to attain its true 
object, we must arrive at more equitable rates. We know that 
opinions differ radically as to what the proper remedy should be, 
and those opinions may be based upon reasons that are better 
than the basis of the report of this committee ; possibly so ; but 
the assistance the committee has had is as good as any we could 
secure by payment of a reasonable fee, and the actuary, whose 
judgment we have in part followed, is recognized in insurance 
circles as among the best in his profession. His standing and 
character are such as to entitle his views and judgment to care- 
ful consideration, and we so far followed his advice as to adopt 
his table of ratios for assessment, and he has recorded his ap- 
proval of the plan finally adopted by the committee and now 
before the Association. 
The result of the study of the committee is now before you, 
gentlemen, and the polling of votes will indicate the will of the 
members. It has been a laborious task—one that we would gladly have seen committed to others. Had the problem pre- 
sented been the construction of a plan upon which to organize, a 
Mutual Aid Society, the recommendation would have differed 
greatly from that now before you. 
Major George W. Adair, Medical Department, said 
Mr. President and Gentlemen ; The new member that joins 
to-day at 25, taking a ratio of 100, in thirty years will be 55 years 
of age and have the same ratio. To do violence to our imagina- 
tion and suppose that a member 25 years of age would join at 
that date, taking the schedule number 100, when the annual 
assessments were made, he would pay the same amount as the 
member 55 years old, and by a system of over-estimating the 
death-rate the new member would put up the same amount of 
money as the old member in the reserve fund. The new mem- 
ber now objects to paying two where the old men pay six. Will 
the young member then pay an equal amount with the old mem- 
ber more cheerfully ? Why should the old man at that future 
time be entitled to a lower rate than the old man of to-day ? I 
have taken a period of thirty years, but believe that the harmful 
workings of this scheme will be so apparent in five years as to 
deprive the Association of the possibility of ever getting a new 
member. 
The President: If there is no further discussion I will ap- 
point General Sawtelle, Major Garlington, and Lieutenant Carl 
Reichmann as tellers, to count the votes as they are cast. 
The roll was then called and the vote recorded as the members 
answered to their names. 
The committee appointed by the chair as tellers then retired 
and counted the votes, the result of which they announced as 
follows: 
Total votes cast, 835; 773 yes ; 62 no. 
The President : The new constitution has been adopted by the 
Association, and under the arrangement will go into operation 
immediately after the next assessment—the first of April next. 
This provision, that the Executive Committee shall consist of 
seven members, perhaps would be better to let go over until 8 
the next meeting, or I would like to hear from some of the 
members of the Association on the subject. Under the new con- 
stitution which you have just adopted the Executive Committee 
snail consist of seven. The Secretary is not a member of that 
Executive Committee. The Executive Committee elects the Pres- 
ident, Vice-President, and Secretary, and now as to whether we 
shall run along just as we are, or whether we shall elect these 
thiee new members of the committee, remains for the members 
to decide. 
General M. R. Morgan : Mr. President, I do not think that any 
harm can come to us by continuing the officers whom we have 
now, and I move that we do this, and allow the election of the 
new members to go over until the next meeting of the Asso- 
ciation. 
xhe President : All in favor will say aye; those opposed, no. 
The ayes have it, and the motion is carried. 
The next motion in order, gentlemen, is adjournment. 
The motion was made by one of the members and seconded, 
and the President declared the motion carried, and the meeting 
adjourned at 3.20 p. m. 
B. F. RITTENHOUSE, 
Secretary. 
R. C. DRUM, 
President. CONSTITUTION 
OF THE 
ARMY MUTUAL AID ASSOCIATION. 
Adopted at the Special Meeting, November 18, 1896. 
Article I.—Name and Object. 
Section 1. This Association shall be known as the Army Mutual 
Aid Association, and its office shall be at Washington, D. C. 
Sec. 2. The object of the Association shall be to aid the fami- 
lies of deceased members, as hereinafter provided. 
Article II.—Officers and Executive Committee. 
Section 1. The affairs of the Association shall be managed by 
an Executive Committee, consisting of seven members, who shall 
be elected from and by the members of the Association in such 
oidei and number that one-third of all, as near as practicable, 
shall be elected annually for periods not exceeding three years. 
Three members shall constitute a quorum for business. 
Sec. 2. The officers of the Association shall be a President, 
ice-Piesident, and Secretary, who shall also be Treasurer; all 
to be chosen annually by the Executive Committee. The Presi- 
dent and Vice-President shall be chosen from the Executive 
Committee. The Secretary and Treasurer shall be chosen from 
the Association at large and shall not be a member of the said 
committee. 
Seo. 3. In the event of the death, resignation, or inability to 
act of any officer of the Association or of any member of the 
Executive Committee, the vacancy shall be filled by a majority 
vote of that committee until the next ensuing annual meeting. 
Sec. 4. The President shall preside at all meetings of this 
Association and of the Executive Committee (of which he shall 
be ea officio the chairman), sign certificates of membership, and 
perform all duties pertaining to the office. In the absence or 10 
disability of the President, the Vice-President shall discharge 
his duties. 
Sec. 5. Under the direction of the Executive Committee, the 
Secretary and Treasurer shall receive and account for the current 
funds of the Association; shall have charge of the records and 
books of accounts ; conduct all correspondence ; attest certificates 
of membership, and issue notices of assessment. At each annual 
meeting he shall submit a detailed report of business, showing 
the receipts, disbursements, and the financial and general condi- 
tion and prospects of the Association. 
Aktxcle 111.—Duties and Powers of the Executive Committee. 
Section 1. The Executive Committee shall attend generally to 
the government and financial affairs of the Association ; shall 
pass upon all applications for membership; shall prescribe 
forms; shall audit all claims and accounts and decide all ques- 
tions that may arise in connection therewith; shall direct the 
Treasurer to draw his drafts for all payments; shall select a 
suitable depository for the funds and securities of the Associa- 
tion ; shall authorize the procurement of necessary services, and 
shall have full charge and authority respecting all matters not 
herein specially provided for. They shall meet on the first 
Monday of each month and upon the call of the Chairman, and 
a record of their proceedings, authenticated by the signatures of 
the Chairman and the Secretary, shall be kept. 
Sec. 2. They shall have the powder to require, as the condition 
of continued membership, a new and thorough medical examina- 
tion by a medical officer of the Army in the case of any one who 
they may believe shall have become addicted to habits of intem- 
perance or immorality. 
Sec. 3. They may at any time, in the name of the Association, 
take measures to procure incorporation for it, or petition Con- 
gress for such legislation as would, in their judgment, be bene- 
ficial to its interests. 
Akticle IV.—Membership. 
Section 1. All who are members of the Association on the date 
when this Constitution shall take effect shall continue to be mem- 11 
bors thereof, and they shall be re-classified for purposes of assess- 
ment in accordance with Section 2, Article V. Any commissioned 
officer of the Army on the active list who, previous to his forty- 
fifth birthday, personally or through an agent, places in the 
hands of the Secretary an application to join the Association 
may become a member: Provided, That the application is made 
in accordance with the prescribed form; that the evidence of 
sound health and good habits is satisfactory to the Executive 
Committee, and that the dues for the remainder of the current 
fiscal year are paid. 
Sec. 2. The status of a member of the Association shall not 
be affected by his leaving the service, so long as he conforms to 
the requirements of the Constitution. 
Sec. 3. Non-delinquent members may quit the Association at 
any time upon tender of their resignation in writing. A member 
who resigns thereby renounces all claim upon the Association, 
and his name shall be dropped. 
Sec. 4. Any person who has ceased to be a member of the 
Association and has tendered payment in full of all dues in de- 
fault may, in the discretion of the Executive Committee, be 
readmitted to membership and all rights pertaining thereto, 
provided the provisions of Section 1 of this Article are complied 
with. 
Article Y.—Assessments. 
Section 1. As soon as practicable after March 1 of each year 
the Executive Committee shall cause to be sent to each member 
an assessment notice, which shall be in the form of a printed 
statement, giving the project of the year’s assessment and the 
amounts due from members of all ages. Each member’s assess- 
ment is due and payable in advance, annually, on April 1, or semi- 
annually, April 1 and October 1, at his option. The printed 
statement containing the assessment notice shall be sent by mail 
to each member’s post-office address as shown by the War De- 
partment records, or to the last address he may have furnished 
the Secretary. 
Sec. 2. Each member shall be assessed in accordance with a 
graduated scale of ratios for ages, the nearest birthday at the 
time of reclassification, or admission if admitted after the adop- 12 
tion of tins Constitution, being ever thereafter taken as the age 
of a member for purposes of assessment. This scale of ratios 
shall remain constant during the membership and is as follows, 
viz: . 
Age 25 and under 
100 
Age 39 
“ 40 
151 
Age 53, 
. 256 
“ 26 
103 
156 
“ 54 
. 267 
“ 27 
106 
“ 41 
162 
“ 55 
, 279 
“ 28 
108 
“ 42 
167 
“ 56.... 
. 292 
“ 29 
112 
“ 43 
173 
“ 57 
. 306 
30 
115 
“ 44 
180 
“ 58 
. 320 
“ 31 
118 
“ 45 
186 
“ 59 
. 336 
“ 32 
122 
“ 46 
193 
“ 60 
. 353 
“ 33 
125 
“ 47 
201 
“ 61 
. 372 
“ 34 
129 
“ 48 
209 
“ 62 
. 392 
“ 35 
133 
“ 49 
217 
“ 63 
. 413 
“ 36 
138 
“ 50 
226 
“ 64 and over.. 
. 437 
“ 37 
142 
“ 51 
235 
“ 38 
146 
“ 52 
245 
All members who are less than 25 years of age shall pay at 
the ratio for age 25, and all who are more than 64 years of age 
shall pay at the ratio for 64 years. 
Sec. 3. Members joining the Association hereafter shall pay 
assessments at date of joining, computed on the following basis, 
viz: If the member joins in March, the whole year’s assessment 
shall be paid; if he joins in April, eleven-twelfths of the year’s 
assessment shall be paid ; if in May, ten-twelfths, and so on, 
diminishing at the rate of one-twelfth of the year’s assessment 
per month. 
Sec. 4. The annual mortality shall be assumed to be 20 per 
thousand, or 2 per cent, of membership, and at the beginning of 
each fiscal year the Executive Committee shall levy an assess- 
ment upon the members for a gross sum of money that shall be 
required to pay death claims on 20 per thousand of the mem- 
bership as it existed at the beginning of the fiscal year: Provided, 
That in the percentage computation of assumed mortality frac- 
tions equal to or greater than one-half shall be reckoned as unity, 
and fractions less than one-half shall be rejected: And provided 
further, That the assessments shall be levied in strict accordance 
with the graduated scale of ratios for ages of members as pro- 
vided in Section 2 of this Article. 
Sec. 5. A member who shall fail to pay any assessment within 
thirty (30) days after the same is due shall be fined one dollar 13 
and again notified by mail (the evidence of which shall be the 
mailing to him of a registered letter at his address, as shown by 
the War Department records, or at the last address he may have 
furnished to the Secretary), and if he shall remain in arrears 
for sixty (60) days in all, his name shall be dropped from the list 
of members. If he shall die during this period of sixty (60) days 
and while indebted to the Association, the amount for which he 
was liable shall be deducted from the pecuniary benefit due on 
the death of such member: Provided, That all fines collected 
shall be used in defrayment of the business expenses of the 
Association. (Section 12, Article YII.) 
Sec. 6. If a death shall occur on the same day that a member 
joins the Association, such member shall be assessable for the 
benefit thereupon due; the certificate of membership, signed by 
the President and Secretary, shall be evidence of the date of 
joining. 
Article Yl.—Pecuniary Benefits. 
Section 1. With the least possible delay after the death of a 
member, the Executive Committee shall cause the net benefit to 
be paid, and in each case the amount so paid shall be $3,000, 
which sum shall include the decedent’s interest or personal 
credit in the emergency reserve. 
Sec. 2. No benefit shall be paid upon the suicide of any mem- 
ber of less than one year’s standing, unless the Executive Com- 
mittee shall be convinced that the death was the result of in- 
sanity. In case of the suicide of a member of more than one 
year’s standing, the fact of insanity shall be presumed in the 
absence of clear evidence to the contrary. The decision of the 
Executive Committee, entered upon the minutes of their meet- 
ing, shall be binding upon all concerned in each case. 
Sec. 3. Any member may change the person or persons desig- 
nated as beneficiaries by filing with the Secretary a declaration 
to that effect. Assignments of the benefit to others than widows, 
children, or other relatives of the members are deprecated and 
will not be recognized unless approved by the Executive Com- 
mittee. 14 
Article Vll.—Funds and Expenses. 
Section 1. The fiscal year of the Association shall extend from 
April 1 of one calendar year to March 31 of the next year, 
but the books of the Association shall be closed annually on 
the last day of February, and all pecuniary benefits arising from 
deaths occurring during the month of March of each year shall 
be paid from and chargeable to the assessments for the next fis- 
cal year. 
Sec. 2. The funds of the Association shall be applicable only 
to the payment of death claims and current expenses, and, ex- 
cept such limited amount as in the discretion of the Executive 
Committee should be dejiosited in bank, shall be invested in 
United States registered bonds. These securities may be sold 
only in pursuance of specific resolve of the Executive Committee 
in case of each sale, and this action shall be evidenced by the signa- 
ture of the President or Vice-President, one other member of the 
Executive Committee, and the Treasurer. 
Sec. 3. No money shall be paid or indebtedness incurred by 
any officer of the Association except upon a specific resolve of 
the Executive Committee, and all checks and drafts must be 
signed by the Treasurer and countersigned by the President or 
Vice-President and one other member of the Executive Com- 
mittee. 
Sec. 4. The bonds owned by the Association shall be regis- 
tered in its name and must be personally examined and counted 
and the bank balances and other funds verified monthly by a 
member of the Executive Committee, and reports of their ex- 
aminations shall be filed with the records of the Association. 
Sec. 5. An auditing committee of three, who are not members 
of the Executive Committee, shall be chosen by ballot at each 
annual meeting. It shall be the duty of this committee to make 
a thorough examination of the books, records, and accounts, and 
the methods of conducting the business, to count and verify the 
funds and securities of the Association, and to make a written 
report of their examination and audit, with such recommendations 
as they may wish to submit. 
Sec. 6. No moneys shall be collected by this Association beyond 
amounts needed for the payment of the stated benefits, for the 15 
necessary business expenses, and for the accumulation of an 
Emergency Reserve, the maximum amount of winch shall be 
$25,000 for each complete group of one hundred members ; Pro- 
vided, That no change in the amount of this reserve shall be made 
except at the beginning of a fiscal year, nor for any fluctuation of 
membership of less than one hundred. 
Sec. 7. All moneys belonging to the Association shall be con- 
solidated into one fund, to which shall be credited receipts from 
any and all sources, and to which shall be debited all disburse- 
ments and losses. 
Sec. 8. All death claims shall be paid from the general account, 
the resources being availed of for this purpose in the order of 
(1) interest earnings on funds invested, as provided in Section 13, 
Article YII; (2) forfeitures, Section 11, Article YII; (3) the an- 
nual assessments of members, Sections 2 and 3, Article Y; and 
(4) when the mortality exceeds 20 per thousand, from the pro- 
ceeds of the sale of bonds pertaining to the Emergency Reserve, 
Section 6, Article YII. 
Sec. 9. Whenever at the close of a year a portion of the annual 
assessment of any member is left unexpended, the said surplus 
portion shall be credited to the Emergency Reserve until the 
member’s equitable share therein is reached ; then, and so long as 
his share in this reserve is maintained, any remaining surplus of 
the annual assessment shall be credited to him on account of his 
yearly dues for the succeeding year: Provided, That each mem- 
ber’s share in the Emergency Reserve shall be computed on the 
basis of the ratios for ages contained in the table, Section 2, Arti- 
cle Y. 
Sec. 10. The sum standing to the credit of a member in the 
Emergency Reserve shall be forfeited to the Association upon the 
withdrawal or dropping of the said member in his lifetime. 
Sec. 11. At the beginning of each fiscal year the members 
shall be specially assessed -pro rata for the entire amount ex- 
pended during the year just completed in conducting the busi- 
ness of the Association, less the amount received on account of 
fines (Section 5, Article Y), and the proceeds of said special assess- 
ment shall be covered into the general fund as a reimbursement. 
Sec. 12. In all enumerations of the assets of the Association 
the bonds owned shall be stated at their current market value. 16 
The funds composing the Emergency Reserve shall be kept con- 
stantly invested, and interest earned in excess of amount needed 
to make good any depreciation in the market value of the bonds 
shall be disposed of as provided in Section 8 of this Article. 
Article YIII.— General. 
Section 1. The meetings of the Association shall be held at 
Washington, D. C. The annual meetings shall be held on the 
third Tuesday in April of each year, at which time the Executive 
Committee shall submit a report of the transactions of the Asso- 
ciation for the preceding fiscal year. The proceedings of these 
meetings, accompanied by the reports of the Treasurer, the Exec- 
utive and Auditing Committees, and by a list of members, shall 
be promptly published for the information of the Association. 
Special meetings shall be called upon the written request of ten 
or more members. 
Sec. 2. The books of the Association shall be open to the in- 
spection of members, and those residing at a distance from 
Washington can have sent them by mail a statement of their 
individual accounts with the Association upon application to the 
Treasurer. 
Sec. 3. At all meetings of the Association each member shall 
have tlae right to one vote, either in person or by proxy given in 
writing. 
Sec. 4. This Constitution may be altered or amended by a two- 
thirds vote of the members present or properly represented by 
proxy at any annual meeting of the Association : Provided, That 
the proposed alterations and amendments, signed by ten or more 
members, shall have been furnished to the Secretary in writing 
not less than three months prior to the meeting at which they 
are to be acted upon. It shall be the duty of the Secretary, 
under the direction of the Executive Committee, to publish such 
proposed alterations or amendments to the Association not less 
than sixty days prior to said meeting. 
Sec. 5. By-laws and regulations, if not in conflict with this 
Constitution, may be prescribed by the Executive Committee, 
and shall govern in the transaction of the business of the Asso- 
ciation. 
Sec. 6. This Constitution shall take effect on April 1, 1897.