The Grange advance., 1874-01-28
Chicago corresp spondence:.
BANK .SWINDLES.
National Life Insurance SWindle.

BENJAMIN LOMBARD AND HOW HE DID IT.
CHICAGO, Jan. 18th, 1874.
e. \ touch of nature sets the world
akin, says Shakespeare, and from this very
standpoint the Grange movement finds
sympathy in Chicago. While you are COM
batting monopolies. while you are wrestling
with the problem Of how to free yourselves
from the combinations leagued against
your interests, we too are fighting the same
enemy clothed in a different garb.
You farmers have found that the right Of
discovery did not die with Columbus: he
discovered new world. you have found the
lurking place of your enemy. You are now
| surprised that you should have borne so
long the despotism Of monopoly, while it
ate up your substance and reaped the fruits
of your toll. Just so with US Of the city
we have awakened to the fact that we have
been the blind victims Of greed and dishon-
esty under the garb Of legally organized
| banks
A storm blows down the rotten trees, so
the late panic laid bare the villainous prac-
tices which have crept into the manage.
ment of our banks and trust companies
1t may not be uninteresting to the readers
Of the ADVANCE to learn some OF the
"ways that are dark" practiced by insti-
tutions claiming to be safe repositories of
the money Of con6ding public.
Twill commence with The Franklin Bank,
which has been doing business for several
years in this city as a Savings Bank. Ben
jamin Lombard, the President and princi-
pie stockholde:, owned several {" blocks"
and was known as = real estate dealer and
general speculator, and was supposed to be
a man of considerable wealth. Briggs, the
cashier, left 4 position in the public schools
of the city to fill the Office he has since
held. By their plausible advertising hum
dreds Of mechanics and laborers were in
duced to deposit their earnings in the con-
Germ, aud among its depositors are found
business men Of considerable means A
few weeks since it was placed in the hands
Of receiver, it having gone down with
Lombard, its protector, into the whirlpool
OF bankruptcy. The examinations of the re-
ceiver-now going on-are bringing to light
the scandalous manner in which this bank
was managed. The stock was $500, 900.
and the practice Of the officers was to allow
a.
secured paper equal to the amount of his
stock. Il privilege they did not fail to avail
themselves Of; while the more ambitious
Lombard had in his hands $3.50, 1000 of the
banks funds: the Vice President knew it,
the cashier knew it, the directors knew it,
but he was in the same mire with the rest
of them only good deal deeper, and when
reproached for using the money of the
bank without security, all he had TO say
was that most sane, satisfying .retort -
"You're another A goodly portion of the
banks assets is stock of the National Life
Insurance Company Of Chicago, Coop
erative swindle that has been humbugging
the public, and by its blazing ADVERTISE
ments, deldding the people into the belief
that the ''policies issued by the concern
gave genuine insurance. This was also q
pet child Of Lombard's rearing; he has
been president and special nurse to the
bantling until few months ago. This
I" confidence game" went on until last
week, when this g Benevolent Institution, -
which has spent thousands Of dollars ad-
vertising people not to insure in the Etna
Life Insurance Company, Mutual Life In
surance Company, or any Of the cold line
companies but to come to the arms of the
National where they could obtain life iu-
surance cheap. This company, which $" has
brought about revolution in life insur
ance.' was thrown into bankruptcy and
the receiver reports to the State Auditor
that he can find but $26 of reliable assets.
while the liabilities foot up $13O,OOO.-
care : he robbed one to strengthen the
other, then robbed the other to keep life in
one. The three couldn't all live-Lombard
and the twins-so Lombard died, but alas !!
too late to save the twins he had lived on
them too long, there was no vitality left
The Franklin bank may pay twenty-five
cents on the dollar but what the National
Life-Insurance- revolution -of-life insurance
o-operative-swindle will pay is. as Dun
dreary says, " what no fellah can tell"
have given your readers glimpse of