The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-08-13

Oeiicve 1t was an attempt TO wreck tho
Iron hall, MS il was known that IL was the
depository of the Iron Hall for the East.
After an investigation it was discovered
that there was large deposit OF the Iron
Hall money there, so large that if the bank
were allowed to go into the receivers hands
1t would in all probability entail heavy
loss on the order. meeting of executive
officers was called in Philadelphia.
NJ. &. Davis was called from Indian
apolis. The situation was looked over,
therein deposited. at that time something
over 100000. the final conclusion arrived
at was that If the bank was wrecked the
next move would be receiver asked for
the Order of the Iron Hall. The question
as TO what we should do had to be answered
quickly and promptly. Believing the as
sets OF the bank To be good. and further be-
lieving that il the bank could be saved at
that time. and the Order of the Iron Hall
would he also saved, we agreed to protect
the cashier, provided the iron Hall would
donate $4,000, the amount sufficient to
tide over the bank and save il from the re-
ownership. The agreement was made that
the amount should be donated to the stock
holders of the bank for that purpose. This
act was done voluntarily by NJ. G. Davis.
who volunteered to furnish the money ont
side the Iron Hall. provided the Iron Hall
would protect him in so doing. / under
stand the arrangement was afterwards
made with NJ. G. Davis to that effect by
mem bers of the order In that city. In ac-
cordance with their agreed support and
protection. relying upon the order to
sumo this as an emergency and necessity,
when the tim Q came. the money waste nd
cred to the directors deposited IN the bank
and the bank was allowed to proceed with
its business. This was reported TO the Su-
preme Sitting, W hich Endorsed the action and
called an extra assessment to pay any thing
that might be lost at that time by the
measures taken in the oraer's defense.
want to be full and frank. The parties
who met in Philadelphia at that time were
+. ID. SomerDy. NJ. q. Davis, L. II. Hosmer
u. w. Rouse, James II. Eckersley. g. H..
Baker, Joseph Gladding. j. Henry Hayes,
III. q. Williams and l think s. J. Stock
well. the solicitor of the Mutual Banking
Company, who Is q member of the order,
and Mr.. McMeachim, 1T seems to me was
there"
lyon assumed to take $4,000 of tho
funds of the Iron Hall and donate it to the
stockholders of the bank"
SAID THEY HAD TO sIEZE 1T.
"It was necessary for us so to do, be-
leving at the time that tho loss would be
triaing that would be finally donated.
There was no final settlement made,
neither has there been MP to the present
time. IL was a matter to be adjusted la
ter on"
How much cash was in the bank at tn at
timen
II. do not know. made no inquiry. The
bank had for some time been owing the or
der 100000. The matters of finance have
been entirely between Mr. Hayes and Mr.
Davis. and have given them no attention,
believing them to be all right"
when did the Iron Hall begin TO deposit
in the Philadelphia BankT
Soon after it's organization, In Febru-
airy, 1890. gave you the list of stockhold-
0Ha f4HGa
been subscribed outside, but l do not
know by whom. was not present at the
organization of the bank, find. after re-
fresning my memory. All there was of the
bank before the Iron Hall took il was it's
naked charter. Mr.. Dubois and Mr.. Hayes
brought the charter to our attention. MIR.
Dubois is the editor of the organ of the
order, the Problem Solved. lie is paid a
salary OF q, 900 year ont of the order.
met Mr.. Hayes on several occasions Du-
bois and Hayes were working up a suffi-
cient list of stockholders / had no more
interest than to 60 in with them and have
it depositary of the ORDER"
Had any banking business ever been
done by any body under this charter be-
foref"
Il have not been able to ascertain that
there was. The charter was held by s. b.
C0nglin: he was the one who controlled
the charter he was not an Iron Hall man
at that time. / think he has gone in since.
The charter happened to be one that had
been issued In 1867. and was represent ted as
being very valuable by the holders. 1t
contained several special privileges. and
they were set forth. am not banker.
know nothing special about the banking
business. This charter was present ted to
me to read on the way tOthe sitting at
Omaha. 1t was also presented to Mr..
Davis and quite q number of members. Ii
was talked over that 1t would be- good
thing to start q bank where We could have
our own depositary. L made up my mind
II we could have depositary, then,
a. we had dso oao large deposit at
ersey Trust at Camden, controlled by Mr..
Hayes. that we could transfer II across the
river under our own charter for we needed
1t for the accommodation of our mem ers.
Jersey Trust Company. He was a repre-
sentative at the meeting. held the Office
of supreme trustee at that time and does
now. Mr.. Dubois approached me personal
ly AID by letter. He wanted me- to see Mr..
Davis and ask him to become one of the
| charter members of the bank. Mr.. Davis
held back. Finally he did conclude TO 20
IN, having in the mean time consulted with
Mr.. Hayes All know about Ii is that we
were to pay 81 900 each towards the old
| charter and the stock issued on tho char
ter should be considered a liability when
| the bank had done business enough TO In
crease the value of the stock to that
amount tS10O.0O0.j The original 81 600 paid
Os
Hayes. There were. think. ten who agreed
to put in 81, 900 EACH"
HOW THE BANK GOT ITS CAPITAL"
did you understand that the charter
was to be put In as capital valued at $780,
| 600. and as the bank earned the money the
| $1,000 would be taken from the earning.
until you had given in that way 500, Door
1t was represented to me that there
would be little liability beside the first In
vestment of 81, 900. because the old stock Is
| sued could be retired and bought ND
When paid my $1,000 received $4,000 o
| old stock. Mr.. Davis the same. and other
| likewise. That would leave in the hand
| of an unknown party the balance OF tn,
| 100000. that is $4,000 of the stock issued
| Ii was not TO be paid until the BANK
| lgrpwth would warrant lt from it's surplus.
on understood that about 100000 o.
| stock was outstanding and that you would
| pay in altogether about 1900. You wer
buying the stock practically at 80 cents OF
the dollar. taking up $50, 100 and leaving
| 70,000 In the hands of some unknown par
| tiesf"
That's right"
What about the minority of stock con
| trolling the bankf"
| "The bank was organized and proceeded
to business under change of name
| changed by the court, believe. After tn,
bank was organized the subscri ption list
| which had been opened began to get su b
| scribers to the Mutual Surety, Banking ant
Trust Company. 1t was cooperative and
the call was made for $4,000 to be pait
/ hU [1r