Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1892-08-18
IRON HALL OFFICIALS ARRAIGNEO.



scatiiingly :Arraigned and Accused of
Extravaganza or Worse--Ths Applica-
tion for Receivsrship.
INDiANAroLIs, lND., Aug. l2-The appli-
| cation for a rcceivership for the Order of
the Iron Hall was heard by Judge Taylor
| yesterday. The applicants were repre-
sented by Attorney Hawkins. who pre-
| scented severe arruignment of the supreme
officers of the Iron Hall and their manage
ment of the order.
Attorney Hawkins said in substance
The evidence will show that there is
about S72O,oDO in a bank in Philadelphia,
which, originally chartered as the Inter
national Security Company, and enpow-
cred TO do general banking and fidelity
business chat is, it could become security
for officials handling funds, &c. }. had been
acquired by Chief Justice SOmerby, SUI
prene Trustee Hayes, Supreme Cashier
DAVIS and other officers and managers of
The Iron Hall. or this bank Sumerby was
made vice-president and Hayes secretary
and treasurer. They started out to do a
general banking business with pllrported
caoital of SlG7,OO0 We think the testi.
mony will show that the capital is tCti
tlols. large number of bonds of the
Iron Hall Building Association are now
held by this bank, and rs 1t now stands
there is ST2O,0OO of the funds of tho
Iron Hall in that bank, while the books
show only SllU,uD. Thus there are over
$4,000 Of the funds of the Iron Hall that
cannot be found. AL this was done by
the conniyancc of the executive committee
and the officers of the corporation for
which we are asking that receiver be APP
pointed.
"Mr. McAleachaIu, who is the son-in-
law 81 Mr.. Somsrby, got hold of about
SbD,oOO OF the bnnds of some Kansas City
4 =
lirers of the local branches and induced
them to invest. When the interest became
due II was defaultGd. The treaSurers began
% threaten trouble and the bank took up
the bonds.
I'VE believe the evidence will show that
the entire available assets Of the bank will
not pay the deposits and debt of the Iron
ihll To say nothing of other obligations,
winch we arc informed amount TO over
Si3J,OOJ At one time there was a differ
ehce ui $4,000 between the accounts OF the
order here and the bank books ut Philade-
phia.
The proof will show that for the Omaha
meeting i'll 1883 the expenses of the session
OF three days amounted to ever 81 800, and
there were only ~ persons in attendance.
Among the expenses was Il present of $1,000
10 Chlef Justice SOmcrby. Usually when
orders and secret societies go into a strange
town to hold their annual meeting the
city entchuins them, but at Omaha ii was
different; the city officials and the MAYOR
We're wine'l, dincd and banquetcd and the
mayor was presented with il solid set Of
silver. All this money for expenses came
from the treasury of the order and was
paid out by those still i'll power.
''lietore this ease is done we will hear a
great deal about poor people who will suf-
Ter, and Of working girls In Massachusetts
VINO VIII lose every cent they have in
vested. II the receiver is appointed, we
say the quicker the better. The sooner we
stop these appropriations for champagne
SuPperS and sets of silver services the bet
ter u will be for the contributors.
We have charged reckless management.
We have not had access to the books of
the order and can speak of them only in Il
general way; but we know that Soinerby
llrst got 5000 year; then $4,000 was pre-
scented with the S3,0uO, and next his salary
was increased to $4,000 year. We think
we will show that large sums we're paid
out for travelling expenses that included
not only himself, but his wife, son-in-laW
ana perhaps others, at 50 per day; that
warrants were drawn rcckleSSly and that
if large sums of money were not suuan-
dered in influencing legislation in Massa-
chusctts New Hampshire and other states
at least the claim was made that it was 50
used, The legal expenses, we expect to
show, were from $4,000 to $4,000 per
year. The local branches pay charter
fee of Sl0U and we will show that the
books do not show that there is in tile trea-
sury or ever was paid into it the returns
for at least 600 branches, one half of
which should go to the order. There is no
$4,000 for charter fees that has ever
reached the treasury. Whogot it we do not
know"
Judge Howe, in his reply for the defence,
contcnded that the Philadelphia Bank was
solvent, and defended Mr. Somerby from
the charge Of reckless expenditures.
Mr.. Somerby was then put on the wit
ness stand by the plaintiffs. He acknowl-
edged that there was 1870, 900 in the Phila-
delphia Bank belonging to the Iron Hall,
and practically acknowledged all the state.
mcnts made by plaintiffs attorney in
regard to that bank. But he denied ali the
essential points of the charges made
against him in other respects, especially as
to the Omaha matter and extravagant
management.
The Supreme Sitting of the Iron Hall,
the governing power of the order. met here
yesterday. The sessions are secret.