Verhovayak Lapja, 1947 (30. évfolyam, 1-24. szám)

1947 / Verhovay Journal

FAGE 6___________________________________Verhovay

THE CONVENTION STORY

Journal________________________September 24, 1947

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terest returns in excess of the assumed rate of interests and

c.) reduced expenses.

The Association enjoys a favorable mortality rate at present. On the other hand, investments had not yielded returns in excess of the assumed rate of interest while expenses have exceeded the limitations of our Expense Fund, as is explained in detail in the Audit Report (which appeared in the last issue of the Journal.)

Consequently, only one of the three sources of dividends remained open to the Association.

Of the annual dues paid on the average membership certificate $1.44 was set aside for expenses. Of this, 80 cents had been returned to the branches. The remaining 64 cents were supposed to cover the expenses of the Home Ofice, the management of the Association and the various fraternal activities pursued by the Verhovay. Obviously, this does not leave any possibilities for dividends.

Substantial profits had been realized on the sale of bonds but these gains are not allowable for dividend purposes because within the next few years the situation may revert itself in which case the gains would disappear.

The gains derived from the low mortality rate of the Association, also are limited by various considerations as, for instance, future mortality expectations.

These basic factors had been taken into consideration in the computation of dividends and indications are that, for the next few years, dividends will be paid on a similar scale.

When computing the dividends payable to the individual member, consideration is given to age, date of entry, class of insurance and similar factors. For instance: the amount payable on a 4% certificate is necessarily less than that payable on a 3% certificate. Many of the districts demanded that each member be paid 3% of the reserves per annum, in dividends. This could be done only if the Association would realize a 7% yield on the investments on 4% certificates, or a 6% yield on the investments on 3% certificates. Actually, however, our yield was a little better than 3% which is a favorable yield in comparison with most other organizations, but not sufficient to warrant the payment of dividends.

How does the age of the member affect the dividends payable on his certificate?

Death losses are higher in old age than in the earlier years. As a result, higher amounts can be set aside for the reserves of the certificates of younger members than for those of older members. Actually, were the scientific principle caried through to its full extent, younger members would receive higher dividends than the old members. This has not been done in order that the older members may not be deprived of the advantages enjoyed by them. Still, within limitations, this principle had to be maintained and that resulted, in many instances, in what seemed inequalities to the members.

Naturaly, the amount of dividend varies, also, according to the classes of insurance certificates held by the members. Dividends cannot be the same on a Whole Life Certificate as on a Twenty Year Endowment even if the amount of monthly dues are equal, because the reserves on an Endowment Certificate increase more rapidly than on a Whole Life Certificate.

The computation of dividends, indeed, is a science, entirely beyond the comprehension of the average layman. It is for this reason that the dividends are to be computed by the actuary who alone is qualified to determine the amounts of dividends payable by the Association.

(Mr. Knodel did his best to make his explanations in as simple manner as possible, but even so, many of the delegates felt a bit lost. Still, they understood how the various factors affect the computation of dividends and they were satisfied that the proper procedure had been followed. In the above we attempted to give an extremely simplified version of Mr. Knodel’s explanations, for the benefit of our readers.)

The highly educational but tiresome session ends and the meeting adjourns for the lunch period.

The afternoon session.

A letter from Louis Balogh of Branch 45, Cleveland, 0., and a telegram from Joseph Danish of Branch 21, Youngstown, O., to the National Convention, is read by ehairman Kolozsvary who, then, introduces the district managers. Frank J. Cher, Victor Austerlitz, Louis Cincel, John Fülöp, Joseph Nemes, Michael Simo, Nicholas Takacs and George Toth are given a Warm reception by the assembly.

Chairman Kolozsvary announces that the Committee of Appeals has concluded the hearings and is now deliberating the issue. The case may be closed by nightfall.

Continuing the discussion of the directors’ report the delegates consider the results of our promotional activities. Questions are asked in reference to the losses of the Juvenile Order, but Supreme Auditor John Sabo informs the assembly that at the proper time a new promotional plan will be presented to the Convention. Upon his request this matter is left pending until that time.

A brief discussion about the next

item, the Journal of the Association folows. Several delegates request information as to the salary and duties of the editor. Thh Supreme Auditor and the Supreme President furnish the answers. It develops that the editor has various duties in addition to editing the Hungarian and English Journal. This seems to satisfy | the inquiring delegates.

The detailed discussion of the report of the Board of Directors is concluded and the report is adopted as a whole.

The assembly now proceeds to determine the amount to be allowed to the representatives of the press. After a lengthy but amicable discussion it is agreed that the representatives of the dailies are to receive $250 and the editors of the weeklies $175, while $50 shall be paid to those Hungarian weeklies which are not represented at the Convention but will publish a report on the Convention, to be released by the Home Office.

Coloman Kaldor, editor-publisher j of the “St. Louis és Vidéke”, President of the American Hungarian Newspapermen’s Association, expresses, in behalf of his colleagues, his appreciation of the delegates’ generous decision . . .

Exhausted by the heat, the delegates are released for the day by chairman Kolozsvary after 5 o’clock...

The Fifth Day.

Back to the air-conditioned English Room. A plenary session! The Committee of Appeals is back! It’s business has been concluded at last! Now, at last the Convention will be able to go ahead with full speed!

First, however, matters of routine ave to be cleared out of the way. Roll call, reading of the Minutes. Telegrams are read bringing the greetings of the Hungarian World Federation in Budapest by Tivadar Acs, executive vice-president, branches 90, 22, the Verhovay Home of Branch 129, William Feifar of Branch 164, Chicago, and Arthur Dobozy, secretary of the American Hungarian Relief, Inc.

The long awited moment arrives! Chairman Kolozsvary announces that the Committee of Appeals is ready. BUT — its Minutes are not ready yet. It will take at least another day to have the 100 pages of these Minutes typed. Yet, it is of utmost importance that the entire procedure of the Committee of Appeals be revealed to the assembly, because the case is referred for final action to the National Convention.

The delegates are sorely tried. They are anxious to have this issue cleared before proceeding further. Many demand that a verbal report be made and action be taken immediately. The demand, however, is rejected. The Convention decides to await the completion of the Minutes. More delay . . . and how

much more?!

The part .of the directors’ report dealing with the handling of investments and left pending for this session, is now under discussion. Supreme Treasurer John Szalanczy renders a detailed report, which is received with great satisfaction. Mr. Szalanczy is given a thunderous applause and a vote of thanks for his satisfactory management of the finances of the Association. This, somehow, relieves the sense of frustration from which the delegates begin to suffer due to the prolonged tension of waiting for the decision of the Committee of Appeals.

It is past ten o’clock. Time has come for ehe special order of the day . .

The American Hungarian Federation.

The Convention votes to hear at this time the addresses of Dr. Tibor

Kerekes, Secretary, and Mr. Emery Király, treasurer, of the American Hungarian Federation, Washington,

D. C.

The gentlemen, upon entering the assembly hall, are given a warm reception. Chairman Kolozsvary does the honors and Dr. Kerekes steps up to the microphone. He starts with a brief outline of the history of the American Hungarian Federation, which goes back to 1907. Then he reads the By-laws of the Federation to which, since its reorganization, the Federation always has faithfully adhered. The Federation has no secrets. All of its activities are open and known to the entire membership. He cites several instances in which the Federation has helped members of the Verhovay. There is an ever increasing need for an organization of this kind. It would be a great loss to Americans of Hungarian origin if this organization could not be maintained.

Following his brief address, various questions are asked by a number of delegates. Dr. Kerekes replies briefly, sincerely, convincingly. He is followed by Mr. Király who renders a brief presentation of the financial status of the Federation. It develops that the Verhovay contributes a full half of the amount representing the income of the Federation.

The gentlemen leave the floor. Motion is made to immediately discuss the matter of Verhovay’s continued support of the Federation. Many of the delegates are opposed. A vote is taken. 99 delegates voted in favor of taking immediate action in this matter while 56 voted for postponement. The discussion is opened.

The offensive is launched by the opposition. “I speak in behalf of nearly two thousand members when I move that the Association leave the American Hungarian Federation” —says one of the representatives. Several speakers elaborate on the alleged shortcomings of the Federation. Others mention the costs involved in supporting this organization. Many a speaker is applauded by the apparently substantial1 faction trying to separate the Verhovay from the Federation.

Then the supporters begin to move up. Fervently they plead the cause presented to the assembly by Dr. Kerekes and Király. Some are willing to grant certain concessions to the opposition but maintain that support of the Federation must be continued. Supreme Secretary Revesz raises two questions: “Is there a need for the Federation? Is it worth the 1 cent per month support by the adult members of the Association?” Answering both in the affirmative he drains strong applause. Mr. Bencze follows with his arguments in favor of the continued support of the Federation.

Both sides 1 are somewhat hampered by a rule adopted at the beginning at the debate, that no speaker be allowed more then three minutes. Some are unable to conclude their arguments. Still, both sides

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