Verhovayak Lapja, 1955 (38. évfolyam, 1-12. szám)

1955 / Verhovay Journal

ENJOY the REGAL ATMOSPHERE of the CONRAD HILTON

PAGE 8

Verhovay Journal

April 20. 1955.

RÁKÓCZI - VERHOVAY MERGER AGREEMENT

(Continued from Page 1)

the National Convention as a National Delegate, Member of the Board of Directors. Member of the National Auditing Committee, or as a National Officer. Members joining the Association subsequent to the merger shall also be eligible for these offices. Each society shall fill one of the offices of the Vice Presidencies.

The National Auditing Committee, at present composed of three members, shall be increased to five members, three shall be elected from Verhovay and two from Rákóczi.

e. Two Rákóczi Aid Association National Officers, Joseph Vasas, National Secretary, and Stephen Kundrath, National Treasurer, and two Verhovay Fraternal Insurance Association National Officers, John Bencze, National President, and John Szalanczy, National Treasurer, shall retire on January 1, 1956, and in recognition of their untiring and unselfish devotion over many years of service, shall receive a life time monthly pension of Three Hundred Dollars (($300.00), which sum includes now' accrued pension rights of the respective societies’ Pension Funds.

f. It is a foregone conclusion that each member of each society shall, continue to pay the same monthly assessments, per capita tax and dues which he has been paying under the terms of his certificate or by-laws and that the guaranteed values contained in his certificate shall remain in effect.

After the merger a “RIDER” shall be issued to be attached to each Rákóczi and Verhovay membership certificate, which “RIDER” shall acknowledge membership in the William Penn Fraternal Association together with all rights and privileges incident thereto, and all certificate benefits to which each member or his lawful beneficiary is entitled as provided therein.

The same provisions shall apply to those who are members of the Sick Benefit Departments of either the Rákóczi or the Verhovay. The monthly dues shall not be increased for members of either soeiety and thtv same provisions pertaining to sick benefit payments and maiming benefit payments shall remain in effect for members of both societies.

g. Rákóczi members holding N. F. C. (National Fraternal Congress) Certificates shall retain those benefits established by the Rákóczi By-Laws.

Verhovay members are also guaranteed the retention of those benefits established per rules and regulations approved by the Verhovay Board of Directors. , i

h. We have heard that certain Rákóczi branch officers and members

are of the opinion that in event of a merger their branches shall be discontinued and that the members of such branches shall be transferred to the Verhovay branches in their cities, We wish to emphasize that the Merger Agreement specifically provides that the Rákóczi and the Verhovay branches shall continue operating separately just as before the merger and that the branch officers shall continue in their respective offices. The only exception is a minor one brought about by the fact that both societies have branches which are numbered alike, consequently to distinguish one from the other the Jetter “R” or the letter “V” shall be placed before the branch number. >

i. It also has come to our attention that certain full-time organizers or managers and part-time branch managers and secretaries have been fearful of the aims and purposes of the merger because they fear it would mean the Joss of their positions, that is, their livelihood and means of income. We most emphatically state that such feai-s are based on misunderstandings because the Merger Agreement gives assurance to all such employees and officers that those who faithfully and capably perform the duties of their offices or positions shall retain their offices or positions just as though there were no merger. In fact, due to the higher percentages of collection fees and commissions which the Verhovay Fraternal Insurance Association pays, the present Rákóczi Aid Association full-time managers, organizers and part-time branch secretaries shall be placed in even more remunerative positions than they now enjoy.

MERGER AGREEMENT

MADE THIS .................day of .................19...............by and

between THE RÁKÓCZI AID ASSOCIATION OF BRIDGEPORT, CONNECTICUT, a fraternal benefit society organized and existing under and by virtue of the laws of the Stat« of Connecticut, having its office and principal place of business in the City of Bridgeport, County of Fairfield, State of Connecticut, acting herein by ALBERT KOCSIS, its Supreme President or in his place LOUIS VARGA, Vice President, JOSEPH VASAS, its Supreme Secretary.

its Convention President, and

its Convention Secretary, hereinafter referred to as “RÁKÓCZI”, and VERHOVAY FRATERNAL INSURANCE ASSOCIATION, a fraternal benefit society organized and existing under and by virtue of the laws of the Commonwealth of Pennsylvania, and having its office and principal place of business in the City of Pittsburgh, County of Allegheny, in said Commonwealth, and acting herein by JOHN BENCZE, its National President; COLOMAN REVESZ, its National Secretary; hereinafter referred to as “VERHOVAY”;

WITNESSETH:

WHEREAS, The Verhovay Fraternal Insurance Association was organized and incorporated under the provisions of the

Act of General Assembly of the Commonwealth of Pennsylvania, entitled “An Act to Provide for the Incorporation and Regulation of Certain Corporations”, approved the 29th day of April. A. D. 1874, and its supplements and amendments in the County of Luzerne, Commonwealth of Pennsylvania, on November 29, 1886; and

WHEREAS, the Rákóczi Aid Association of Bridgeport. Connecticut, was founded on April 13, 1888, and was incorporated under the laws of the State of Connecticut by virtue of Senate Joint Resolution No. 130 of the General Assembly at the January Session, A. D. 1903, and approved April 23, 1903; and

WHEREAS, each of the fraternal benefit societies began functioning more than sixty-five years ago and gradually, over the years, by careful and economical management of their assets, grew in size and strength, and expanded their activities into almost all of the towns, cities and states of our country which contained Hungarian communities, until, today, they are the two largest American-Hungarian Fraternal benefit societies in the United States: and

WHEREAS, both societies draw their membership from approximately the same population groups; and

WHEREAS, a merger of the two societies will make possible efficiency in operation and effect great economies in the cost of operation of both societies; and

WHEREAS, the Board of Directors of each society did appoint a Merger Committee which held joint sessions, established the basis for a merger of the two societies set forth in a merger agreement which was submitted to the respective Boards of the two Societies and approved; and

WHEREAS, the respective Boards of both Societies deemed the terms and conditions of merger hereinafter set forth to be equitable to the members of both societies; and

WHEREAS, the delegates of Rákóczi, in Convention assembled and the delegates of Verhovay in Convention unassembled, deem it in the best interests of their members to merge the two societies to better serve the interests of their respective members and through their united strength to. create, foster and promote true fraternalism to a greater degVee and preserve the culture of the founders of the two organizations and to serve an even wider community in the future; and ■

WHEREAS, it appears that a merger of the operations of the societies will be to the mutual advantage and benefit of both and that by such a merger, a stronger fraternal benefit society will be created and the members of both societies thus benefited; and

WHEREAS, it is the intent of the parties to this merger that neither Society nor the members of either Society shall have any advantage over the other and that the merger be accomplished in such manner that the membership rights of the Verhovay and Rákóczi members be safeguarded in every respect and that all members of the merged society in the various categories shall maintain their contract rights and in no event shall have less than their pre-existing rights in the respective Societies; and

WHEREAS, the laws of the Commonwealth of Pennsylvania and the State of Connecticut, relating to fraternal benefit societies authorize and permit a merger and prescribe the methods and conditions under which it may be accomplished; and

WHEREAS, amendments to its charter can be more easily made by the Verhovay under laws of the Commonwealth of Pennsylvania than by the Rákóczi under the laws of the State of Connecticut, which require Special Acts of the Legislature of the State in order to effect any change in its charter. .

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises and covenants herein contained and other valuable considerations hereinafter stated, Verhovay and Rákóczi do agree as follows:

1. That Verhovay and Rákóczi merge under the terms and conditions hereinafter stated and that this Merger Agreement be submitted to the respective Insurance Commissioners of the State of Connecticut and the Commonwealth of Pennsylvania for approval.

2. That following approval of this Merger Agreement and issuance of certificates authorizing the merger by the respective Insurance Commissioners of the State of Connecticut and the Commonwealth of Pennsylvania, this Agreement shall be in full force and effect. The delegates of the two societies shall convene at a joint convention at Pittsburgh, Pennsylvania, on September 12, 1955, for the purpose of effectuating this Agree-