The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1885-09-17
A SW[NDLING COMPANY.
The Iowa Mutual Benefit.
The Associations Illegal and Fraudu.
lent Practices in IlfinOis-..A
Former Swindle Re-
yiyed.


in the county at one time. Their names
were Riley, Frank and Walter Smith,
and the article alluded to said in refer
ence TO them:
Their father was for many years lum-
Der dealer there, having for many years
for partner Henry Thompson. Several
years ago William Thompson sold out
and went to Toledo, Iowa. Riley Smith,
who had become physician and married
Thompson's daughter, had located at To
ledo some time previous to his father-ln>
laws arrival Frank and Walter Smith
were school teachers, Frank holding a
position in the public schools of Moline,
while Walter taught the young idea of
Hampton how To shoot. Frank subse>
quently became a full tledged doctor.
More than year ago Frank and Walter
moved TO Toledo, Iowa, and soon the
Home Mutual Life Insurance company
was organized. Henry Thompson was
made president. Frank Smith, vice presi>
Riley Smith, medical examiner Frank
Boney and j. W. Ballard, also two An
daluslans, were elected to positions in the
organization. 1t is said the company did
thriving business, and assurances with
their attending fees came rolling in in
large numbers, but soon deaths began TO
take place, and those who held policies
began to clamOr for their money. Then,
it is stated, and not until then, did the
company stop. Its dissolution is said to
have been sudden and permanent, and
now comes the news that warrants are
out for the arrest of the Smiths and their
cOnfederates.
The article created good deal of ex-
element at the time and considerable re-
greet was expressed at the Smiths being
implicated in such transaction, as pre-,
vioustto it they had been well liked and
trusted here A few DAYS later, how~
ever, Dr. Riley Smith called at this office
and entered fat denial of the truth of
statements previously made in these coll
umns He stated that neither of his
brothers were connected with the sssoci>
alton in an official capacity, no more SO
than was Mr.. Thompson president of it.
To prove these assertions he produced
papers to show also that the company
was paying all obligations.
Having no positive proof to the con-
trary, the ARGUS gave DIR. Smith the ben,
eft of the doubt, and i'll the next issue
made retraction of anything that haC
been said rejecting upon the character OF
Dr. Smith or his associates. still main,
tanning, however, that the organization
had erred in soliciting orders in Illinois
and were liable to prosecution for violat
ing the laws in this regard The matter
was thus dropped and nothing more was
heard of the Smiths until a few weeks
ago, when their swindling games wer'
Established without a doubt
| 1t seems that P. j. Haverling AM
his wife, Mrs. A. W. Haver
ling. of Milan. were insured il
the association for 81 900 each, paya
Bile to the surviving member after tn
others death. On October z, 1884 Mrs
Haverling died The assessments ha,
all in the meantime been paid up, and, oil
October "a, Mr. H. notified the compan
of his wife's death. The receipt of sue
notification was acknowledged by H. H
Harrison, Jr., secretary Mr. Heverliny
waited patiently for further tidings from
the Toledo organization, but heard moth
ing. On May 2Sth he went to Toledo il
f person and was told that the amount O
2 the policy would be paid him in ninet
p days. Ninety days came and went bu
not the money. He again went to Tole
f do; this was in September. To his amaze
ment he was informed that owing to tn
? fact that his dues had not been paid, b
4 had relinquished his claims to the S ,00C
e Mr.. Heyerling was justly indignant, an
\ threatened prosecution unless he wa
9 given his dues Finally a settlement wa
+ affected by which Mr. H. received $478
for which he paid S12.40 alleged assess
ments, which, however, were not due, a
he had receipts to show, but rather tina
enter into the annoyance of lawsuit, b
, accepted the terms. Mr. Heverling say
, he consulted with others in Iowa VIII
were the victims of similar treatment.
That the aim of the organization is t
swindle and defraud and benefit iise
alone, there is no longer shadow of
doubt. As stated above, the organizatio
had no legal right to transact business i
, Illinois; is of such nature that accordn
to an act enacted by the thirty third ger
eral assembly,it is barred from practice
the state The law went into effect Jul
/, $685. and after that date the associa
ton had no legal existence in the stat
So the organization is liable to prosecu
ton, not only on the ground of swindling
!, but of illegal practice. The officers G
the association are, as they were at Il
time Mr., Haverling took out his polio!
N. II. Wilder, president; Ii. s. Thomp
son, vice president; P. G. Whiting, treas
urer; w. II. Harrison, Jr., secretary; E
r. Smith, M. D., medical director; W. v
) Lacy, E. Buck, w. G. Smith and j v
) Ballard general agents; DR.. E. r. Smitl
superintendent of agencies.
The above ST atements are vouched fl
hr- Nj Hnunrlt,,nr t,rbn nln 10 In