Verhovayak Lapja, 1955 (38. évfolyam, 1-12. szám)
1955 / Verhovay Journal
Report of the Board of Directors of the Verhovay Fraternal Insurance Association to the XXIII Regular National Convention September 12,1955 Dear Delegates: We respectfully extend to you, the delegates of the supreme legislative body of our Organization, our heartfelt greetings. We submit to you this report, for your examination and analysis, of our operations and activities during the last four years. The first item on the agenda is the Merger Agreement between the Verhovay Fraternal Insurance Association and the Rákóczi Aid Association. It was at the May 30, 1953 Board of Directors meeting that we took the first steps in the plan to merge the two societies. We resolved at that time that we would do our utmost to bring about a merger of these two societies, and our first efforts met with success because the Board of Directors of the Rákóczi Aid Association accepted the principle of a merger of the two organizations. Each society’s Board of Director's appointed a five-man merger committee to proceed with the negotiations. The members of our merger committee were John Bencze, National President, Julius Macker, Vice- President, Aloysius C. Falussvy Director, Joseph Turner, Director. (Stephen Lang, Director, succeeded the late Joseph Turner) and Coloman Reves/.,Kational Secretary. The merger committees first met. on October 1, 1953, which meeting was followed by six other merger negotiation meetings. On October 2, 1954, at a time when the Rákóczi Aid Association was dedicating its new Home Office building, all directors and officials of our Association met with the directors and officials of the Rákóczi Aid Association as, first, a gesture of goodwill and secondly, to take advantage of the opportunity to look more thoroughly into the merger negotiation proceedings. The minutes of the merger committee meetings, as well as the merger agreement, were approved by us and at the beginning of the year 1955 our merger negotiations reached its culmination. We approved the recommendation of the two merger committees, that both societies convene for a convention at Philadelphia, Pennsylvania, beginning on July 11, 1955, to bring about a final decision on these merger proceedings. Our plan did not materialize because the E-ikobzi Aid Association eou-.d not get the approval of the Connecticut Insurance Department to move their convention from June 5 to July' 11, and from Bridgeport, Connecticut, to Philadelphia, Pennsylvania. Our Board met at a special meeting to consider the situation in the light of this development, and decided to remain with the provisions outlined in our bylaws pertaining to the date of our regular convention, and the site of our regular convention. This being the situation, we resolved that the merger agreement should be submitted, by mail, to the 1951 National Convention delegates for a decision. The merger agreement and the resolution was approved by 103 to 6 votes. 8 delegates lid not vote, there were in total 117 delegates eligible to vote. The Rákóczi Aid Association held its regular convention on June G. 1955 at Bridgeport, Connecticut, and the merger agreement and the resolution were approved by a vote of 103 for approval and 19 against approval After the above happenings it developed that the Pennsylvania Insurance Department would not approve the merger agreement until the 1955 National Convention delegates approved the merger proceedings. In the last two years the Rakoczi-Verhovay merger proceedings has been kept before us constantly. The advantages of such a merger, the possibilities it presents for the future, are well known to all of us, therefore, we .request the delegates to discuss and debate, as the first item on the agenda, the merger agreement, and to approve the merger agreement. It is our opinion that the merger would serve the best interest of the members of both organizations. * * * Four years ago, when the last national convention was in session, the Korean war Was in process. It was necessary for our sons and friends to take up arms once again to protect the rights and liberties of all people. The leaders of our country were successful in bringing about an armistice. • which armistice we believe will bring about a lasting peace. It is a sorrowful fact, however, that the cold war continues. Nations are ever ready for another outbreak of actual hostilities. In Hungary our suppressed friends are still undergoing the trials and conditions forced upon them, and* it is with sympathy that we view their present unfortunate plight, yet with the faith that there will be a subsequent peace and happy life for them in the future. It is with sorrow that we learned of the death of Joseph Turner, Director, on January 11, 1955. This unfortunate blow certainly meant a terrific loss to the society. Mr. Turner was a man respected and liked by ali of his colleagues; he served as a member of the Board of Directors since January 1, 1944, being elected as a Director, for the first time, at the 1943 National Convention. He always served his organization well, unselfishly and faitnfully. Another loss to our Association was the death of Leopold Hirsch, Assistant to the National Secretaiy, who died May 21, 1955. Mr. Hirsch became a member of the Home Office staff after the merger of the Workingmen’s Sick Benefit Federation with the Verhovay Fraternal Insurance Association in May, 1947. Joseph Darago, former National President, died on May 11, 1953. His activities as a leader in the Hungarian circles and in our Association will long be remembered. In the last four years there were also many deaths in the ranks of our branch officers, as well as other members. We pay our sincere respects to the memories of every member, adult and juvenile, who died in the last four year period. We extend to the surviors our sympathies. Answering the call of duty in the Hungarian-American public life, we did our best to participate therein. Our Association aided the American-Hungarian Relief, Inc. and was represented by Director Aloysius C. Falussy right up to the time there was —FAGE -_______________________________________________________________________________ Verhovay no longer any need for this charitable organization. We participated in this organization’s Christmas Seal campaigns. It was good for us to know that so many of our branches and members came to the aid of this relief organization with their donations. We further participated actively in the direction and work of the American-Hungarian Federation. This very important, much needed, worthwhile organization, representing the Hungarian-Americans, deserved and received our material, as well as moral support. The last National Convention approved the contribution of an annual sum of $1,000 to the American Hungarian Federation. John Bencze, National President, has represented our Association on the official staff of this organization. John Sabo, National Auditor, was elected Treasurer of the American Hungarian Federation by the Board of Directors of that Association. He, however, did not assume the position of Treasurer until after the approval of this action was voiced by our own P.oard of Directors. We also wish to report that after the death of Director Joseph Turner, the alternate director, Louis Vassy, was named to the Board. Stephen J. Matasy, the Association’s very capable General Counsel, because of his many-fold duties as a lawyer, resigned from this position on September 30, 1953. Gay B. Banes, a member of the Board of Directors, was unanimously elected as successor to Mr. Matasy. The vacancy created on the Board of Directors by Mr. Banes’ appointment as General Counsel was filled by alternate director Mike Korosy. We further wish to report that in accordance with the provisions of our bylaws, the positions of Board Chairman and Board Secretary were filled by election from the ranks of the members of the Board of Directors. John Bencze, National President, served as Board Chairman, and Richard J. Phillips, Director, served as Board Secretary during the last four-year period. Each served unselfishly, faithfully and capably. The ever-increasing competition in the life insurance field made it necessary for us to take certain forward steps in our promotional department. In the years following the last national convention we came to the conclusion that good results in the new membership promotional department could be achieved only if at our more important branches we placed trained, skilled insurance men to work as branch managers. We realized that only such capable insurance men would be able to produce for us the required quota of new business as well as give to our members the proper insurance service they deserve. The finding, training, placement and the constant supervision of such insurance men made it necessary that our National President, who is entrusted with the promotional work, receive capable assistance. We readily approved the request of the National President for such assistance at the March, 1953, Boáid meeting. We also approved his request that Elmer Charles, Field Supervisor, be elected to fulfill this position. Elmer Charles, in every respect, has produced first-class results and he is worthy in every respect of the confidence that we placed in him when we appointed him to this position. The 1951 National Convention approved the changing of the name of the Association, and it authorized the Board of Directors to look after the change of name plans. We wish to inform you that this assignment was not an easy one. Many obstacles had to be removed from the path leading to the change of name. In line with the last convention’s resolution, the selected new name first had to be made known to each Insurance Department, for its approval, and secondly the new name then had to be submitted by mail to the delegates of the last National Convention for their approval. After lengthy proceedings we finally reached the point where on May 4, 1953, our selection of the new name: WILLIAM PENN FRATERNAL ASSOCIATION: was forwarded by mail to the 1951 convention delegates for their approval. The results were as follows: 65 for approval, 42 against approval, 8 did not vote, 3 votes were voided. After the new nam» was approved by the mail ballot of the 1951 delegates we did not proceed immediately with the actual change of name, because the Rakoczi-Verhovay merger proceedings brought out the request from the Rákóczi Aid Association leaders that we delay putting into effect the change of name. We can report to you, however, that we have taken every legal step, as well as every official means, to carry out this assignment and it is a fact that at the time this report is in your hands our new name will already be in effect. Competition, as well as progressive trends, in the life insurance and accident and health insurance fields made it necessary for us to make certain changes in our various plans and also to introduce new benefits for our members and our employees. a.) On July 1, 1952 the Association introduced a new-type Double Indemnity on which monthly dues are based on occupational classifications. Journal _____________________________October 19, 1955 occupationalclassifications are as follows: Classes “AAy> __ __“D” — “E” —“F” — “HJ” Age “Preferred” “Medium" “Special' 10-55 $0.14 $0.21 $0.28 Classes “B” -- “G” 10-39 $0.20 $0.30 $0.40 40-44 .18 .27 .36 45-55 .14 .21 .28 The above monthly rates are for $500. or $1,000. insurance, over and above $1,000. pro rata is charged. Double Indemnity coverage terminates at age 65 on the new-type benefit, whereas the old-type double indemnity terminates at age 70. b.) The Association has been using a non-medical application blank for new membership from age 16 to age 35; later extended to age 40; since August, 1950. Since that time, to July 31, 1955, the Association has received 3,401 non-medical applications for adults. The record reveals a satisfactory experience because, of the applications received and approved, there resulted only three deaths, as follows: One died in automobile accident. One died a natural death; investigation did not reveal any fraud. One died of illness which was concealed by the applicant and ths (Continued on page 8)
