Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-08-12
IN IRON Halls DEFENSE.

indianapolis Courts HearinS the Applica-
ton for q Receivership.
The attorneys for the order Of the Iron Hall
yesterday at Indianapolis attempted to have
the reoeivership trial continued, on the plea
that no afidavits had been aled in support Of
the charges In the complaint. but Judge Tay-
ler decided to hear oral argument and refused
TO continue the case.
In his statement Of the ", :. l.e Of tlae at
torneys for the plaintiffs said:
There is e720, 600 OF the funds OF the order
in Somerby's Philadelphia bank aud the books
show e4S0, 900: thus there are over e200, 900 Of
the Iron Halls funds that cannot be fouad.
The order Is not stakeholder.
IAN this was done by the connivanoe Of the
executive committee and the officers Of the cor
porations for which we are asking that re-
ceiver be appointed. Mr.. McMeaeham, who Is
the son-in-law Of Mr.. somerby, got hold Of
about ESQ 900 of the bonds Of some Kansas City
institution and went around to the tressurers OF
the local branches and induced them 10 invest.
When the interest beosDs due 1t was defaulted.
The treasurer began to threaten trouble and the
bank took up these bonds.
1--WE believe the evi,'enee will show that the
entire available assets OF the bank will not pay
the deposits and debt Of the Iron Hall, to say
nothing Of other obligations which, We are in
formed, amount to over else, 900. At one time
there was . difference OF $4,000 between the
accounts Of the order here and the bank books
at Philadelphia"
The attorney also said that it would be shown
orders affairs with the utmost extravaganza.
At Omaha in 1889 the four days session OF the
supreme council which was composed Of only
forty members. cost the organization SIS, 900.
The council had given q champagne supper to
the board Of trade Of that city and had pre-
sentsd the mayor with an expensive silver serv'
ice. 1t also voted o.. 600 to Mr.. Somerby as q
gift. Other similar incidents were related.
The opening statements will not be concluded
until today and the hearing will probably rlast q
week.
The supreme sitting was in secret session all
yesterday conducting what was supposed to be
an Investigation. the result Of which will prob
ably be the removal of one or two Of the sub
ordinate officers. There are some intmations
that checks will be put upon Mr.. Somerby's
exercise Of absolute power.
Judge Howe made the opening speech for
the defense in the case yesterday afternoon.
He said:
I'VE IRE not ready to 60 TO trial. This suit
was filed while Mr.. Somerby was out Of the city
and We were compelled to go to Mr.. Davis and
Mr.. Walker for our information, which We be-
lieve is not as complete as that given to the
opposition"
He denied all allegations as 10 any dishonesty,
IVY "uhiseOo MANY PoAuD uuuo Oy suS ucicASc
and sought to explain them away. Money had
been borrowed, he admitted. from the reserve
fund for the general fund, but paid back. The
reason no meetings had been held was because
there had been no business. Heavy expense had
been incurred in fighting old line insurance
companies in eastern legislatures.
Speaking OF the Mutual Bank OF Philadelphia
he said Somberby had 81, 200 stock and although
he was its vice president he had no power
either to put the orders money in it or draw il
out. He admitted that $500, 900 of the order
funds were in the bank when the Keystone and
Spring Garden banks failed, and when the court
declared an impairment Of sl7o,oOo in the bank
the supreme officers decided to make 1t good
with the orders money in the Mutual Bank.
He said it was more than there ought to be. bu.
he did not think 1t proper to appoint receiver
to wreck that institution by drawing oil the
money out at once. He said the suit ought to
be based on the orders present solvency, not
on its possible future insolvency.
On January l last, he stated. there was
In the benefit fund more than million dollars
in the general fund, $4,000; in the reserve
fund, 81 400, 600, or total assets Of e. 400. 600
Since then the assets have increased to "a 6s6 :
279, with an income of $3.50 900 month from
assessments which usually run two a month.
With its power Of assessment it could pay all il
will be required to pay II the Philadelphia bank
were wiped of the earth.
He ended by declaring that the suit was
conspiracy within the order to drive Somcrby
out intimating that the chief conspirators were
Supreme Cashier Davis and Accountant Walker.