Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1892-08-29
The indianapolis investigation and Wha! Pre-
coded it-Other Facts.

could be done in Oruer TO nave TINS sun
Withdrawn, and in what way it could be
done for the best interests of the order.
After considerable talk. Mr. Mark +.
Davis. supreme cashier of the order, made
thh request that all of Mr.. Somerby's
clerks be removed from the building and
that he would then consent to withdraw the
suit. The matter was then talked over
among us, and the request was acceded to,
we thinking it would be best for the inter
ests of the order for us to do SO.
7 "sAfter we consented that request, instead
of removing the suit, Mr.. Davis the next
day asked that we remove certain MEM
ber of the executive board. Again think
ing that We should do whatever was for the
best interests of the order, we consented to
do that. However, the suit was not with
drawn. And Mr.. Davis, the following day,
wanted that we should consent to get Mr..
Somerby out of the order entirely. We
said that if il was necessary, in order TO
save the order, and Mr.. Somerby would
resign himself-and We knew Mr.. Somerby
would resign if it were found necessary to
save the order by his so doing-we would
consent to have Mr.. Somerby resign.
The next day we supposed that every
thing was then fixed and that the suit would
u
was not After these requests had been
made by Supreme Cashier Davis, we made
up our mind that there must be something
wrong back of it all. The remark was
then made that we had better call meeting
of the supreme sitting, 40 persons in all,
and have the whole matter brought up be-
fore that body.
In the mean time, pending the arrival of
/ the IpIl there "a
appointed to 90 over the accounts of Mr.
Sonerby.
I'VE went over those accounts, took all of
the vouchers he had bills and vouchers
for all the money spent-and examined
them, and found ever, thing in order and
correct. This struck us rs queer, in lieu
of the fact that Mr.. Somerby had been ac-
cused of spending s50,000 in one year
alone, last wear We went over the ac-
counts for three and a half wears back. The
result was that we found that in all his leg
islatise fights in all the states, all his ex-
peuscs, salary included, didn't amount TO
over $50. 500 and that for period of three
and halt years.
''Tlis committee, of course made re-
port 10 the supreme body cXonerating Mr.
Somerby from taking any moneys whatso-
ever This was the unanimous opinion of
the supreme body at that time.
4 lin regard to the organization of the
Philadelphia bank, that was done for the
benefit of the members of the Iron Hall in
the East. Before this bank was started, if
a claim was due it would have to br sent
out to headquarters, which necessitated y
good deal of delay in the passage to and fro
of the drafts through the banks. and ex-
pense. Having the bank i'll Philadelphia,
the amount could be drawn on ii. and the
bank could cash the draft without it costing
the members any thing extra.
at was not Somcrhys bapk-nothing
of the kind. He didn't own the bank; he
had only little in it. The bank got along
very nicely for a while, and was doing
we'll. But last April the bank commission
crs stepped in and called for the books.
without warning ii was entitled to 30 days
notice by law. They came in, however.
without warning called for the books and
examined the bank At that time, YOU
know, the Keystone bank had gone up, so
had the Spring Garden. The bank had
funls in all these banks-some $50 900 in
all.
The bank commissioners threw ont
those deposits as worthless assets.
They then discovered among the assets first
mortgages ON land in Kansas City. which
they held for $4,000. This land was val
ued by real estate people there at sl50,opo.
The bank commissioners threw this out.
THE bank commissioners then threw out
the Iron Hall Building Association lot and
foundation in Philadelphia, which cost $50.
900. and the foundation of which cost about
$50 900 making total value of S3l5 900
The bank had S65, 900 mortgage on that
paving & per cent. interest with the inter-
est all paid up. The commissioners also
threw out s2500 of Suffolk trust securities.
That stock was all thrown out by the bank
examiners, but that was all right, because
il was worthless.
I'VE know, and everybody knows, that
the land IN Kansas was all right, and that
the lot and foundation of the Iron Hall
building association in Philadelphia was a
good investment--as good an investment as
the bank could have. They had a mort
Agage on the whole business.
We were surprised. of course, to find
that there was so much money deposited in
the bank in Philadelphia belonging to the
Iron Hall. 1t was the intention not to have
over s300,0o0 in that bank. Supreme
Cashier Davis was to draw on what was in
the bank to pay warrants. Instead of Mr..
( Davis keeping the amount to the s;no.Go0
limit as intended. he kept on increasing it.
When this difficulty came. the order had
$500, 900 in that bank.
The bank commissioners claimed that
+ the capital of the bank was impaired to the
amount of $50 900, which he said would
( have to bt made up before the bank could
continue in business. 4 meeting of the
/ directors of the bank was called. Mr..
Somerby and Supreme Cashier Davis were
at the meeting. Mr.. Davis had already
arrived in Philadelphia having been telc
graphed by Mr.. Williams bond clerk of the
4 Mutual bank. that the bank was in trouble,
| and tina, he hal be.ser bring funds to help
! stave of the trouble. This was somewhere
/ in the early part of April.
When Mr.. Davis was told at the meet
/ ing that the bank examiner had said it
would take Sl5o.o0o to straigbten the bank
up. he said Boys, you are in hole;
/ shall have te help you ont
! Mr.. Somerby said to him in regard to the
money that was to help out the bank i
I don't want any more Iron Hall money put
| in the bank. Is this money that you are
going to put in the bank to fix il up Iron
/ Hall money or not. Mr.. Davis said No,
! I'll take care of this myself.
III Etg5tt 20 tiff nfDposltioh tu1t was
made to settle the matter of the receiver
ship, and having the suit withdrawn, the
I applicants for the receivership sent a prop
osition to us for settlement. 1t was that
we should iet them come in, take all the.
| books of the office and 20 through them,
/ tsa, the officers should step down and out.
and let the applicants for a receiver run the
entire business until the matter was set
tiled. That is the sum and substance of
/. that proposition.
/ '.of course. the executive board wouldn't
frubmit to ans thing of the kind.
II The executive board then sent its prop
/ osition. Itwas that each party should have
two representatives who should go over the
books together; that nothing should be kept
/ back, and that everything should be brought
I forward 80 that fair and square investi-
CATION could he had.
The applicant for the receivership woild
not consent 10 this.
( That was the proposition made by the
/ executive boarff for settlement. But the
executive board found no settlement could
/ be matie on that basis.
/ We were satisfied that Mr.. Davis wanted