Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-08-17
IRON HALL FUNDS TIED
The Mutual Banking Company Is
Forced to Assign in Order to
KEEP The CASH IN PHILADELPHIA.
Krumbhaar Claimed ALI Along the Concern
Is Insolvent, While
OFFICIALS SAY 1T Is STILL SOUND

PHILADELPHIA, Aug. 16-The Mutual
Banking, Surety, Trust and Safe Deposit
Company, in which funds belonging to the
Iron Hall were deposited, failed to open its
doors this morning. Inquiry developed
the fact that the directors had made an as
signment for the benefit of the stockholders
and depositors to A. E. Stockwell, of. this
city, attorney for the bank.
Neither President Somerby nor Cashier
Hays could be fou nd to-day, and it is be-
lieved they left for indianapolis. As
signee Stockwell was found in company
with H. G. Williams, Treasurer Of the Iron
Company and also director of the bank,
and was asked the reasons for the assign
ment. He referred to the recent suit for a
receivership instituted against the Iron
Hall, and the fact that $430.000 of the
orders money is on deposit at the bank.
''The lawyers on both sides in the receiv-
ership suit" he continued, with the con-
sent and approval of Judge Taylor, came
here to take away the cash and securities Of
the bank and remove them to indianapolis
Mr.. Krumbhaar, State Superintendent of
Banking, has been working with the plain
tiffs with the undoubted intention Of wreck
ing this institution and the Iron Hall.
All to Head on the Receivership.
'Tt was to protect its creditors and keep
its assets within this jurisdiction that the
assignment was made"
"The bank in my opinion is perfectly SOL
vent" said the assignee, sand is able to pay
dollar for dollar all around. The directors,
however, cannot permit the assets and Sc
curities to 60 out of this jurisdiction and
thus compel their depositors to 60 to Indian
apolis for their rights"
Mr.. Stockwell declared it is impossible
ct this time for him to make any statement
of the assets and liabilities of the institu-
tion. The demand for the Iron Hall funds,
he said, was made yesterday during joint
meeting of the bank directors and officers of
the order, which lasted all day. The
directors resisted the demand and there was
nothing left to do but make an assignment.
1t is claimed by applicants for the re-
ceivership at Indianapolis that $720, 900 of
the Iron Halls funds are locked up in the
institution, and that the Mutual Company
is also surety for the Iron Hall officers to
the extent OF 81, 100000.
The Examiner Had Applied for a Receiver.
The amount on deposit is believed to in
clude S170000 said to have been advanced
by the Supreme Justice of the order to
make good an impairment of banks capital
which the State Bank Examiner discovered
last spring. AT the time the examiner
claimed that the bank was insolvent and
applied for receiver
Among its assets, set forth in the cash.
ier's affidavit of defense, was the "Good will
of the corporation, valued at S170, 900" This
item was thrown out by the court and the
bank was ordered to make good the impair
ment, which it succeeded in doing, but has
always refused to reveal whence the neces-
sary $4,000 was obtained. In his testi-
mony at Indianapolis the other day, Chief
Justice Somerby finally admitted that the
$4,000 had been given the bank by the
officers of Iron Hall in order to save it from
going into the hands of receiver.
The officers made the following official
statement of the banks condition on May 81
last:
How the Company stood Last May.