The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-08-15
THE IRON HALL TROUBLE.
THE COURT RESERVES ITS DE-
CIsIoN ABOUT a RECEIVER.

The Plaintiffs Make Broad Charges
Against the officers of the Order-A
Claim That 100000 OF the Funds
Are Missing-The Keystone Bank
Failure Mixed Up With the Orders
Finances
The petition for a receiver for the Iron
Hall was argued before Judge Taylor in the
superior court at Indianapolis last Thurs
day, and that official took the papers and
reserved his decision.
Attorney Hawkins, for the petitioners,
made some startling statements. Among
other things he said:
ave believe the evidence will show that
there is about S72O. 900 in bank at Phila-
delphia, and that bank is controlled by
Somerby, Hays and Davis. The bank lost
from $4,000 TO $4,000 by the failure OF the
keystone Bank and about $4,000 by the
Spring Garden Bank. The bank holds
about $50, 900 Of the paper OF the president
Of the Keystone Bank, who is not now at
home TO his friend, aud also the paper Of
another official of the bank who ia serving q
long term in the penitentiRry. The Iron
Hall Building Association was organized
with flourish, bonds were issued and Ii
was proposed to erect a building. A large
number Of these bonds are now held by this
bank.
LARGE AMOUNT MISSING.
"As it now stands there is 1920, 900 OF the
funds Of the Iron Hall in that bank and the
books only show $430, 900. Thus there are
over 100000 of the funds Of the Iron Hall
that cannot be found. The order is not a
stockholder. All this was done by the con-
pivance Of the executive committee and the
officers Of the corporation for which we are
asking that a receiver be appointed. Mr..
MoMeacham, who is the son-ln-law OF Mr..
Somerby, got hold Of about $4,000 Of the
bonds of some Kansas City institution and
went around to the treasurers OF the local
branches and induced them TO invest.
When the interest became due IL was de-
faulted.
1.-THE treasurers began to threaten trouble
and the bank took up these bonds. We be-
lieve the evidence will show that the entire
available assets Of the bank will not pay
the deposits and debt Of the Iron He'll TO say
nothing Of other obligations. which. we are
informed, amounts to over $4,000.
RECKLESS MANAGEMENT.
eat one time there was a difference Of
$50 900 between the amounts Of the order
here and the bank books at Philadelphia
We have charged reckless management and
excessive expenditures on the part Of Mr..
Somerby. We think we will show that
large sums were paid out for travelling ex-
penses that included not only himself, but
his wife, son-in-law and perhaps others, al
SIS per day; that warrants were drawn
recklessly, and that If large sums of money
were not squandered in influencing legisla-
tion in Massachusetts,, New Hampshire and
other states, at least the claim was made
that IL was so used"
Mr.. Hawkins insisted that the bank was
rotten and the only thing to do was to
appoint a receiver for the Iron Hall and
thus save some Of the assets before they
were all dissipated.
Judge Howe for the defense denied all the
foregoing statements, declaring that the
bank was solvent. Mr. Somerby was then
put on the witness stand and subjected to a
long and close examination. He denied
much Of the statement of Hawkins.
The Savannah members OF the order are
anxiously awaiting the courts decision.
They are inclined to believe Mr.. Hawkins
was too rash In his statements.