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

1947 / Verhovay Journal

PAGE 6

Verhovay Journal

November 26, 1947

quest since fellow-member Soltész was not given any authority to act in the matter of the Home.

40. ) Fellow-member John A. Toth, President of District 12/B personally presents his request that his memorial pertaining to his delegacy be submitted by the Board to the National Convention. The Board advises fellow-member A. Toth that his request will be complied with.

41. ) The complaint of Joseph Barry and Nicholas Yuhasz, members of Branch 14, is considered by the Board which, after reviewing the documents pertaining to the case, finds it necessary to institute an investigation with which directors Charles Smith and John Korosfoy are entrusted. Joseph Szalay vicepresident abstained from the vote in this matter.

42. ) The Board is pleased to acknowledge the greetings of Joseph Fodor and Louis Peterfy, fellow-members in Columbus, O., conveyed by Andrew Dobos, and of Coloman Kassay and Joseph M. Toth, fellow-members in Cleveland, conveyed by Joseph Szalay.

43. ) The Board studies the opinion of the expert in regards to the sick benefit department, the recommendations prepared in conjunction with this matter and the preliminary approval of the Pennsylvania Insurance Department pertaining thereto, and adopts the plans recommending to the National Convention to amend the sick benefit by-laws to the effect that members who have joined the sick benefit department prior to January 1st, 1944, after attaining the age of 65 shall be eligible to receive $2.50, $5.00, $7.50 or $10 weekly sick benefits, provided, however, that in this case they shall be entitled to the full amount of total sick benefits rather than the equivalent of benefits for 62 V?. weeks.

44. ) The discussion of promotional matters follows. District managers Frank Cher and Michael Simo, who had been summoned to attend this session, also take part in the deliberations. The Board hears the minutes taken at the meeting of the Organizing Committee, held on July 19, 1947, and the detailed explanations of the Actuary and, then, resolves to adopt and to present for final approval to the National Convention the following plan:

1. ) The direction of our promotional activities belongs to the jurisdiction of the supreme president. It has been proven by past experience that the duties of the Supreme Organizer are duplicated in the By-laws by those assigned to the Supreme President.

2. ) The Committee entrusted with the developing of the plan of a new promotional system recommends that the present nine organizing districts be replaced by four large FIELDS. To each field an experienced FIELD SUPERVISOR shall be appointed, preferably from among those district managers who, by thenpast records, are known as efficient producers and experts in the problems of the Association. These Field Supervisors shall be appointed by contract, upon recommendation of the Supreme Officers, by the Board of Directors.

THE DUTIES OF THE FIELD SUPERVISORS ARE:

a.) to personally supervise the promotional activities in the FIELDS, in accordance with the instructions of the Supreme President; b.) to select and train prospective managers and organizers, from among the ambitious, talented members of the Association; c.) to periodically supervise the records of the District Managers, Assistant District Managers and Branch-Managers.

THE FIELD SUPERVISORS shall receive a fixed salary and their travelling expenses shall be compensated for on a mileage basis.

3. ) Each large branch shall constitute an ORGANIZING DISTRICT by itself. Similar individual ORGANIZING DISTRICTS may be formed from branches operating in one community, or in adjacent communities, if such action seems advisable, from the point of view of promotional progress, to the Board of Directors.

The managers serving such individual districts shall be known as DISTRICT MANAGERS. The full-time manager shall receive from the Home Office a certain percentage on the dues and all other monies collected and forwardd to the Home Office, instead of the annual allotment stipulated in the present provisions of the By-laws. He shall be assigned a quarterlyproduction quota, for which he shall be entitled to a certain commission to be computed on a percentage basis. He shall be employed and appointed by the Supreme President with a contract, the terms of which are to be set by the Board of Directors. He is under the supervision of the Field Supervisor.

4. ) In branches not having sufficient members to warrant the setting up of an individual organizing district, but where conditions seem to indicate future progress, the Supreme President may appoint the part-time branch-manager ASSISTANT

DISTRICT MANAGER. Such manager shall receive from the Home Office a certain percentage of the dues and all other monies collected and forwarded to the Home Office, instead, of the annual allotment stipulated in the present provisions of the By-laws. The Assistant District Manager shall have a semiannual production quota for which he shall be entitled to commissions on the same percentage basis as the District Managers. The Assistant District Manager, appointed by the Supreme President, shall be employed by contract the terms of which are to be set up by the Board of Directors. The Assistant District Manager shall be supervised in accordance with the instructions of the Home Office, by the Field Supervisor.

5. ) It is the duty of the Field Supervisor to visit at regular intervals the managers of those branches which cannot be assigned to an Organizing District. However, only the Branch- Manager shall be entitled to commissions after new members secured jointly by the Field Supervisor and the Branch-Manager. The commission rates shall be fixed by the Board of Directors. The Committee entrusted with developing the plan of the new promotional system recommends that the branch-manager be paid a certain percentage of the dues and other monies collected, instead of the present annual allotment.

6. ) The Committee found that most of the new members apply for endowment certificates. Most of the lapses are found to occur in the same category. These facts seem to warrant the following conclusion: since our managers and organizers are paid the same commission percentage on all new members regardless of the class of insurance applied for, they favor the classes calling for higher rates of monthly dues, instead of properly selecting the applications suitable to the needs and financial circumstances of the applicants. As a remedy of this situation the Committee recommends the variegation of commission percentages. It is recommended that increased commission percentages be applied to whole-life certificates and moderate percentages be used in computing the commissions for endowment certificates. These commission tables are to be computed in such manner that the average income from commissions may assure those engaged in organizing work of adequatecompensation for their labors.

7. ) Commissions on new business shall be computed on the basis of dues actually paid by the new members. If the applicant pays the reduced rate appliable to advance payments for three six or twelve months, the manager shall be paid commissions on the reduced rate. On the other hand, if the member elects to pay monthly, the due percentage of the total amount of monthly dues shall be paid to the manager.

8. ) Applicants slial3 be required to indicate at the time application is made whether they wish to pay their dues in monthly, quarterly, semi-annual or annual installments. Any change in the payment plan shall be effected only upon approval by the Home Office.

9. ) The new promotional system demands that mention be made in the By-Laws of the Field Supervisors and full-time local managers, to be known as District Managers, in the following manner:

§17/B: FIELD SUPERVISORS: “The Field Supervisors shall be appointed by contract, upon recommendation of the Home Office, by the Board of Directors. Their functions, duties and rights shall be determined by the Board of Directors.”

§21/B: ORGANIZING DISTRICTS: “Each larger branch, consisting of approximately 1,000 members, constitutes an organizing district by itself. In the interest of progress the Board of Directors may form an organizing district, also, of a smaller branch, or of branches in one community or in adjacent communities. The branch, or branches, in organizing districts are managed by full-time managers, officially known as District Managers, who are appointed by contract, prescribed by the Board of Directors, by the Supreme President, subject to approval by the meetings of the respective branches.”

§23: The Branch Officers. Lines 25 and 26 shall be amended to read: “No member shall serve as an officer in more than one branch, excepting the full-time District Managers serving districts constituted of several branches.”

§24: Compensation of Branch Officers: the text beginning with line 14 on page 35 to the bottőm of the page shall be omitted and replaced with the following: “The Branch-Manager shall receive from the Home Office a certain percentage of all dues, payments on loans and interests, etc., remitted by the members and forwarded to the Supreme Treasury.”

§24: The last four lines of the article on page 36 (15 cents per member, semiannually), shall be omitted.

§42: the provision in lines 8 to 11 on page 79, reading “To supplement the Branch Administration Fund there shall be paid from the Home Office administration fund to each branch 15 cents per member each half year” — shall be omitted.