REFLECTIONS OF A LIFE DIRECTOR 335 



This contract did not hold any inducement to economy or efficiency 

 in husiness management, but stimulated effort to bring in additional 

 gross income regardless of expense. 



That there has been an excessive amount of waste and inefficiency 

 in the membership campaign is evident by many instances in which 

 members of years standing have been repeatedly solicited to join the 

 Association, and their explanations ignored — resignations have been 

 given no attention and the ex-members repeatedly requested to pay up. 

 and other business letters received from members handled apparently 

 in a routine way by inexperienced office help. A large force of stenog- 

 raphers and clerks was employed at liberal wages and apparently with- 

 out adequate supervision. This condition has operated largely to in- 

 crease the number of resignations and general dissatisfaction and to 

 increase the turnover and operating expenses. 



These facts should be taken into consideration before deciding that 

 the alarming deficit in operating expenses in 1920 was due wholly to 

 business conditions beyond the control of the Association. At best, 

 the choice for 1920 lay between rigid economy in op,eration with con- 

 tinued financial independence, and lavish outlay, looking to the bene- 

 ficence of the President and others to effect a rescue. The interest of 

 the members indicated the first course — that of the Secretary, the 

 second. 



At the end of this disastrous year of 1920 the net assets of the As- 

 sociation on the balance sheet stood at $18,495.31. Of this sum, 

 $5,000, constituting the Jane Smith bequest was protected by the terms 

 of the will so that only the interest could be spent leaving $13,495.31. 

 But the life membership permanent fund called for the sum of $17,- 

 733.73 contributed by these life members. 



On January 14, 1914, the Board voted "That life membership receipts 

 in the future shall be used as a capital asset only and shall be placed at 

 the disposal of the finance committee for investment in the best in- 

 terests of the Association." Up to the year 1920, only the interest on 

 these funds was expended. 



The total trust funds, by this action, amounted on January 1, 1921, 

 to $22,733.73 Against this there stood on the balance sheet the sum 

 of $18,495.31. But unfortunately the securities representing these 

 funds were shown on this balance at their cost value or purchase price. 

 On January 1, 1921, the market value of these securities had shrunk 



