C.C.U.B. Trust Fund
by Larry A. Ewashen
Although many contemporary Doukhobor societies have received funding from the C.C.U.B. Trust Fund, not everyone is aware of the origins of this funding organization. As a member of the board serving my second term since being appointed by the BC Attorney General, this question has come up on different occasions. I hope that the following will help clarify the emergence of this fund.
Simply put, the C.C.U.B. Trust Fund, is the financial remnant of the once flourishing Christian Community of Universal Brotherhood.
Incorporated in 1917, and brought to its knees in 1938 through foreclosure action, some resources of this one time exceptionally successful communal enterprise remained as a legacy to the present day Doukhobor societies.
After the devastating foreclosure action by Sun Life Assurance, the Canadian Imperial Bank, National Trust, and Crown Life over the outstanding $300,000 interest debt, the BC Government negotiated a settlement with the Trust companies by paying $280,000 on the debt, and thus becoming owners of the entire C.C.U.B. holdings.
Previous to the BC Government takeover, the receivers announced to the CCUB governing Doukhobors that they intended to liquidate available resources to recoup their financial outlay.
This liquidation continued until most of the Doukhobor resources such as lumber and any other items in stock were sold off at fire-sale prices, and the basic industries such as the jam factory were totally depleted so there was no chance of the Doukhobors reviving their CCUB company in a meaningful fashion. After the receivers had completed their work, the Government of BC took over and gave permission for the Doukhobors to remain in the villages as tenants on the properties they had previously owned, provided they could pay rent.
After the government recouped their $280,000, there was a balance left which was deposited into a holding account in Regina, Saskatchewan, and was supervised by the Government of Saskatchewan under the terms of the bankruptcy procedures.
Simply put, the C.C.U.B. Trust Fund, is the financial remnant of the once flourishing Christian Community of Universal Brotherhood.
Incorporated in 1917, and brought to its knees in 1938 through foreclosure action, some resources of this one time exceptionally successful communal enterprise remained as a legacy to the present day Doukhobor societies.
After the devastating foreclosure action by Sun Life Assurance, the Canadian Imperial Bank, National Trust, and Crown Life over the outstanding $300,000 interest debt, the BC Government negotiated a settlement with the Trust companies by paying $280,000 on the debt, and thus becoming owners of the entire C.C.U.B. holdings.
Previous to the BC Government takeover, the receivers announced to the CCUB governing Doukhobors that they intended to liquidate available resources to recoup their financial outlay.
This liquidation continued until most of the Doukhobor resources such as lumber and any other items in stock were sold off at fire-sale prices, and the basic industries such as the jam factory were totally depleted so there was no chance of the Doukhobors reviving their CCUB company in a meaningful fashion. After the receivers had completed their work, the Government of BC took over and gave permission for the Doukhobors to remain in the villages as tenants on the properties they had previously owned, provided they could pay rent.
After the government recouped their $280,000, there was a balance left which was deposited into a holding account in Regina, Saskatchewan, and was supervised by the Government of Saskatchewan under the terms of the bankruptcy procedures.
When the communal homesteads were cancelled in 1906-1907 in Saskatchewan over the issue of naturalization and communal living, the government of the day graciously reserved 15 acres for each resident over eighteen years of age on the periphery of each village. Of course, this was not sufficient for a family to survive on, and those Doukhobors who had left for British Columbia, had given up their ownership rights. These reserves dwindled as they were purchased by the new occupiers of the property after the Doukhobors vacated, in some cases by the Independent Doukhobors who stayed, and in other cases by other new owners who wanted to complete their holdings, particularly when the reserves bordered their land.
In 1918, these former Dominion lands were sold or reverted to the province. The proceeds of the these sales were also added to an account supervised by the Saskatchewan government. It is important to note that these fifteen acre parcels originally belonged to the communal Doukhobors who had left for BC, and were now being sold by the government.
Up until the time of the bankruptcy procedures against the C.C.U.B. this fund was referred to as The Credit Surplus Fund and was held in trust by Toronto General Trust, later one of the receivers in the case.
The majority of the C.C.U.B. holdings were in BC. There were smaller operations and land in Alberta, a flour mill and farming operations around Verigin and Kylemore. These properties were all part of the foreclosure of the C.C.U.B.
After the costly bankruptcy procedures which lasted from 1938 to 1945, the sum of $142,111.07 remained, and this was held in trust by the Toronto General Trust, one of the foreclosing agents, in Regina. This money, then, was combined with the money from the proceeds of the 15 acres lots.
In time, this account grew to the sum of $222,000 plus an accrued interest. This sum was held in trust by the Canada Permanent Trust Company on behalf of the bankruptcy court and in 1979-80, was deposited with the Minister of Finance of Saskatchewan, concurrent with the creation of The Doukhobors of Canada C.C.U.B. TRUST Fund Act by the Saskatchewan government. This money then, belonged to the legal heirs of the C.C.U.B.or its creditors.
But who were the legal heirs? Since it was surplus, presumably, the creditors were paid off. There were cases of people who had lent money to the corporation who were not paid, but had not made a claim at the time of the dissolution. Thus, they had forfeited any claims for reimbursement.
In 1918, these former Dominion lands were sold or reverted to the province. The proceeds of the these sales were also added to an account supervised by the Saskatchewan government. It is important to note that these fifteen acre parcels originally belonged to the communal Doukhobors who had left for BC, and were now being sold by the government.
Up until the time of the bankruptcy procedures against the C.C.U.B. this fund was referred to as The Credit Surplus Fund and was held in trust by Toronto General Trust, later one of the receivers in the case.
The majority of the C.C.U.B. holdings were in BC. There were smaller operations and land in Alberta, a flour mill and farming operations around Verigin and Kylemore. These properties were all part of the foreclosure of the C.C.U.B.
After the costly bankruptcy procedures which lasted from 1938 to 1945, the sum of $142,111.07 remained, and this was held in trust by the Toronto General Trust, one of the foreclosing agents, in Regina. This money, then, was combined with the money from the proceeds of the 15 acres lots.
In time, this account grew to the sum of $222,000 plus an accrued interest. This sum was held in trust by the Canada Permanent Trust Company on behalf of the bankruptcy court and in 1979-80, was deposited with the Minister of Finance of Saskatchewan, concurrent with the creation of The Doukhobors of Canada C.C.U.B. TRUST Fund Act by the Saskatchewan government. This money then, belonged to the legal heirs of the C.C.U.B.or its creditors.
But who were the legal heirs? Since it was surplus, presumably, the creditors were paid off. There were cases of people who had lent money to the corporation who were not paid, but had not made a claim at the time of the dissolution. Thus, they had forfeited any claims for reimbursement.
Various suggestions came forth as to how this money should be disposed of - it was accumulating interest at 3.5%, and if no action was taken, it could be transferred into the provincial treasury. The legal heirs appeared to be all Doukhobors who had at one time belonged to the CCUB or had their homesteads cancelled in Saskatchewan. At the last hearing of the Commission on the problem of the disposition of former CCUB lands, which were sold to Doukhobors and private citizens, the attorney suggested the monies should be converted into a general welfare fund for all Doukhobors.
It should be noted that the Government of BC profited exorbitantly from this transaction, since they had taken over 71,600 acres for $280,000 and sold all of these properties 20 years later at appreciated prices. Other former possessions such as schools were absorbed by local school boards, the famous suspension bridge built in 1913 was taken over by the Department of Highways and continued to serve the public into the sixties, again without compensation to the Doukhobor toilers.
If all Doukhobors were to be the legal heirs, what form could this general welfare fund take? A Doukhobor Institute was proposed, a Seniors’ Rest Home, a Chair of Doukhobor studies at a university. No further action was taken.
A committee from Verigin approached the provincial government with the suggestion that the funds be allocated towards heritage purposes of the Doukhobors. The result was the committee receiving $107,000 to begin forming the National Doukhobor Heritage Village in 1980, although this sum was not from this fund.
In June of 1980, the Doukhobors of Canada CCUB Trust Fund was proclaimed by the Government of Saskatchewan following an order-in-council. The stated intent of the fund was to further the culture and heritage of the Doukhobors in Canada. Monies left, the principle sum of $267,500 was invested in perpetuity and the interest earnings were to be shared by applying Doukhobor organizations from the three western provinces.
A formula designated a board of nine persons, consisting of three delegates from Saskatchewan, three from BC, one from Alberta and one person nominated by the Attorney General of BC and one from Saskatchewan. The three members each from BC and Saskatchewan were to be nominated by recognized Doukhobor societies. ‘Each member holds office for a term of three years or until his successor is appointed... no member may be appointed for more than two consecutive terms.'
It should be noted that the Government of BC profited exorbitantly from this transaction, since they had taken over 71,600 acres for $280,000 and sold all of these properties 20 years later at appreciated prices. Other former possessions such as schools were absorbed by local school boards, the famous suspension bridge built in 1913 was taken over by the Department of Highways and continued to serve the public into the sixties, again without compensation to the Doukhobor toilers.
If all Doukhobors were to be the legal heirs, what form could this general welfare fund take? A Doukhobor Institute was proposed, a Seniors’ Rest Home, a Chair of Doukhobor studies at a university. No further action was taken.
A committee from Verigin approached the provincial government with the suggestion that the funds be allocated towards heritage purposes of the Doukhobors. The result was the committee receiving $107,000 to begin forming the National Doukhobor Heritage Village in 1980, although this sum was not from this fund.
In June of 1980, the Doukhobors of Canada CCUB Trust Fund was proclaimed by the Government of Saskatchewan following an order-in-council. The stated intent of the fund was to further the culture and heritage of the Doukhobors in Canada. Monies left, the principle sum of $267,500 was invested in perpetuity and the interest earnings were to be shared by applying Doukhobor organizations from the three western provinces.
A formula designated a board of nine persons, consisting of three delegates from Saskatchewan, three from BC, one from Alberta and one person nominated by the Attorney General of BC and one from Saskatchewan. The three members each from BC and Saskatchewan were to be nominated by recognized Doukhobor societies. ‘Each member holds office for a term of three years or until his successor is appointed... no member may be appointed for more than two consecutive terms.'
The present distribution formula is 45% to British Columbia, 45% to Saskatchewan, and 10% to Alberta, although it is worth noting that the vast majority of the capital funds came from the CCUB residual fund of BC. This formula is not rigid, and is subject to change, depending on the relative groups and societies in relation to each other.
At the present time, for example, the entire Saskatchewan disbursement is taken over by the museum in Verigin, by comparison, the Doukhobor Discovery Centre in Castlegar receives a portion not larger than the many other groups who apply from British Columbia, since that is where the majority of the societies and groups are headquartered. The Sons of Freedom, who had formerly reduced the assets of the C.C.U.B. through arson, now are also equal benefactors of this fund, as well as the Independent Doukhobor Societies of Saskatchewan who did not contribute to the C.C.U.B. holdings but now choose to have their entire allocation given over to the museum in Verigin. This is entirely appropriate, since all buildings in the museum were constructed by members of the CCUB prior to the move to BC.
A recent development has occurred wherein the Attorney General of Alberta no longer wishes to be involved in sanctioning the Alberta appointment, and the Alberta delegate is now simply appointed by the Doukhobor societies.
This move was followed by the Attorney General of BC. The delegates will be selected as they have been in the past through a meeting and nomination system, facilitated by the Council of Doukhobors in Canada.
The key section is 16[1] which reads: ‘The board shall provide for the making of grants to recognized non-profit organizations which are dedicated to establishing and maintaining the heritage and culture of the Doukhobors of Canada.’
On this basis, any legitimate Doukhobor Society, seeking to encourage and maintain Doukhobor culture and heritage, is welcome to present a submission for funding.
Larry Ewashen,
President, CCUB Trust Fund,
Castlegar, 2006
At the present time, for example, the entire Saskatchewan disbursement is taken over by the museum in Verigin, by comparison, the Doukhobor Discovery Centre in Castlegar receives a portion not larger than the many other groups who apply from British Columbia, since that is where the majority of the societies and groups are headquartered. The Sons of Freedom, who had formerly reduced the assets of the C.C.U.B. through arson, now are also equal benefactors of this fund, as well as the Independent Doukhobor Societies of Saskatchewan who did not contribute to the C.C.U.B. holdings but now choose to have their entire allocation given over to the museum in Verigin. This is entirely appropriate, since all buildings in the museum were constructed by members of the CCUB prior to the move to BC.
A recent development has occurred wherein the Attorney General of Alberta no longer wishes to be involved in sanctioning the Alberta appointment, and the Alberta delegate is now simply appointed by the Doukhobor societies.
This move was followed by the Attorney General of BC. The delegates will be selected as they have been in the past through a meeting and nomination system, facilitated by the Council of Doukhobors in Canada.
The key section is 16[1] which reads: ‘The board shall provide for the making of grants to recognized non-profit organizations which are dedicated to establishing and maintaining the heritage and culture of the Doukhobors of Canada.’
On this basis, any legitimate Doukhobor Society, seeking to encourage and maintain Doukhobor culture and heritage, is welcome to present a submission for funding.
Larry Ewashen,
President, CCUB Trust Fund,
Castlegar, 2006
