REFLECTIONS OF A LIFE DIRECTOR 331 



mittee on November 19, 1919. This committee, consisting of Directors 

 Quincy, Sterling, and Lyman, was re-appointed by the President on 

 February 4, 1920, but was not given any authority by the Board at that 

 time nor subsequently, to act in the matter of determining the Secre- 

 tary's compensation. The only authority which they could have 

 assumed was vested in them would date back to January 10, 1915, 

 at which time C. F. Quincy was authorized to sign the contract 

 for the Directors. Since this date, the Board has never been consulted 

 regarding Mr. Ridsdale's contract or the terms of his employment. 

 The previous contract executed on October 29, 1912, was signed by 

 12 directors. 



The effect of the operation of these arrangements, of which the Board 

 remained in ignorance, will now be shown. The operating income 

 exclusive of advertising, which is treated separately below, was 

 increased during the year from $42,110.60 to S54,653.56, a gain of 

 $12,542.96. The deduction of the item of $4,874.10 dues for 1921 

 paid in advance, would reduce this net gain to $7,668.86. The net oper- 

 ating loss for the year was, however, $11,922.72, and the loss after 

 crediting receipts of $5,6] 3.51 from two bequests, which were expend- 

 ed during the year for current expenses, remaining as $6,209.50 



The total loss however would be increased to $16,796.82 and 

 $11,083.60, respectively, since it is necessary to make correction for 

 advance payments of dues for 1921. 



This anomaly may be explained by examining in more detail the 

 character of the expenditures, bearing in mind that for every dollar 

 f additional operating income obtained, at no matter how great an 

 outlay, the Secretary under his contract secures 20 per cent. 



Funds received by the Association in the form of bequests are ex- 

 cluded by the terms of the contract from the sources of income on 

 which the Secretary can draw commissions. These bequests, received 

 since January 1, 1915, are as follows: 



1915— Elizabeth Shippen $5,000.00 



1916— Rose Hollingsworth 500.00 



1919-20 — James C. Horgan 38.56* 



John D. Williams French 5,727.68 



$11,266.24 



" In process of settlement. 



But neither the Board nor the Finance Committee took definite 

 action during these years, as was done with reference to life member- 



