The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-07-30
They Allege that the Order Has Liabilities
Soon to Accrue Running High Into the
Millions and but Little to Pay Them.
Claim that Supreme-Justice Somerby
Is Guilty of Fraudulent Actions.
What the officials Have 10 Ssy-Growth and
Membership of the 0rder-Former
Trouble in Massachusetts,.
ORDER OF TIE IRON HALL.

Grounds Upon which Three Members Ash
for "a Receiver.
Albert X. Baker. president of the firm Of
Baker * Randolph. Homer A. Sampsell
and Daniel Kneiler, through their attorneys,
Hawkins & Smith. yesterday afternoon
filed. in the Superior Court. q petition
asking for the appointment of receiver
for the Order of the Iron Hall. The petit
tion is q very lengthy one and after setting
forth number of the provisions of tho
constitution and bylaws of the order. pro-
ceeds to make grave charges against Free
man ID. Somcrby. the supreme justice.
The petition says that the order WAS or
gnnized Dec Is, 1881, under the voluntary
association act of 1867. and that one of the
objects of the association was to establish
. a''beneft fund.- from which members OF
the order, who have complied with all it's
rules and regulations. may receive benefit
in q sum not to exceed 81 600. to be paid in
such sums and at such times as may be
provided by the laws governing such pay
ments in the certificate of membership. and
to esta blish "life fund" for the pay ment.
upon the death Of member, of a sum not TO
exceed 5000. The association may levy
at any regular session. in addition TO char
ter fees and other revenues, TO meet the es-
timated expenses of the ensuing year.
THE ORDERS HEAVY liabilities.
There Is q benefit fund.p from which
members draw two. four six. eight hum
dred or q thousand dollars, as they may
elect, their assessments ranging according
Iy. and 20 per cent. OF the amount received
from the assessments is to be set aside for
reserve fund.-" which reserve fund be-
longs 70 the ASSOCIATION, and may be left
with the local branches. upon the payment
of per cent. interest, or turned into the
ISOLATION and invested by 1t SIX years
and SIX months after the incor poration
of the order one-seventh of the reserve
fund 10 subject TO withdral and applica-
ton to the payment of benefciaries.
general fund is provided for by an annual
per capita tax of 81 per member, the reve-
nues derived from the sale of supplies, para
phernalia and charter fees. and from this
fund, the constitution requires, shall be
paid the expenses of conducting the busi-
ness of the order.
The petitioners say that there are 200 10.
col branches of the order situated in vari-
ous parts of the country; that Freeman
Somcrby is and has been for the past five
years the supreme justice of the order;
that they members in good standing.
and entitled to benefits and participant on
i'm both the benefit and sick and disability
fund. They alleEe that they are informed
and believe that the order 10 insolvent aud
indebted tor matured benefits for the bal
ance of the year 1892 in the sum of 81 .000,-
900, and for S325. .0O0 on the sick aud disa-
bility fund; in lS93 for benefits. $4,000 600.
and for siok and disability, S65O,000; in
1894. for benefits, s6.000.000 and sick and
disability. $3.50. 600; for 1895. for benefits.
80 100000 and for sick and disability, $780,
6oo..
The reserve tupd in local branches is al
legged to be only 81, zoo, 600. only one-half of
which 10 available each year for the pay
ment of liabilities. The real estate and
other assets of the order are placed at ST.
100000, q large part of which consists OF
cash on hand, deposited in a bank outside
the State lat PHILADELPHIA, of which
Somerby Is president and j. III. Hays. one
of the supreme trustees of the order.
cashier.
UGLY CHARGES OF FRAUD.
Then follow the grounds upon which tho
appointment of the receiver is asked for.
The petitioners allege that the business is
carried on In q reckless and extravagant
manner in the payment of extravagant
salaries. travelling expenses and pretended
claims which were allowed and paid by
Somerby. although they are informed and
believe that the money was not so ex-
pended.
They allege that the general fund has
several times been exhausted in this wav
and large sums taken from the reserve
fund put into the general fund, contrary to
the constitution and bylaws of the order;
that Somefby changed and altered the
IL hc fpr ff.o 81 a.
tion of the order, and that he appropriated
to his own use and failed 20 account to the
order for large sums of money belonging TO
the order from charter fees and other
money received and collected by him from
officers in settlement with local branches
that had been discon tinued, dissolved or
consolidated; that, contrary TO the con-
stitution and bylaws. no regular meeting
since $780, and no special meeting since
January. 1901, and that there he's been no
examination or auditing of the books of
the order since February, 1891. The con-
mess shall be considered at any special
meeting other than that specified In the
call for the meeting. The petitioners say
that the call for the special meeting in
February, 1891, stated that the meet
ing was for the purpose OF receiving
the report of the financial committee;
that Somerby induced this committee 20 rec
ommend that his salary be increased from
Sc, coo TO $1,000 per annum and that this
was the only business transacted at this
meeting The rules of the order require
that printed report of all special meet
Ings shall be sent 10 the local branches, but
they aIlege that Somerby refused to allow
q report of the February meeting to be
sont TO the branches as required. The pe-
titi0ners allege that. If the present man.
sgement continues, the assets of the associ-
alton will be- dissipated. and the members
deprived of their benefits, and ask that
receiver be appointed TO take charge of and
close up the business OF the order. The
petition has been assigned to Room Of the
Superior Court. and as Judge Taylor is not
mt present in the city 1t has not been passed
upon by the court