The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-08-01
IRON HALL IN TROUBLE.
a RECEIVER FOR THE ORDER
ASKED FOR IN INDIANAPOLIS.

Move Th6y ThoOgnt everything
Was Flourishing.
The mutual benefit orders are playing in
hard luck. Only about two weeks ago one
Of them went to pieces in this state, causing
hundreds of people to lose money, and now
the Iron Hall, which has branch In Sa-
vannah, and has been looked upon as the
most prosperous order of its kind in the
country with a membership Of 10000, lie in
trouble An application was made at In
dianapolis Friday for receiver for the or
ganization, and if the allegations made IN
the complaint are true its affairs are in
very bad mess.
The plaintiffs are A. B. Baker, Fl. A.
Samrsell and D. w. Knefier, members of
the order. Their complaint describes the
order as having l 200 local lodges or
branches. They say that Freeman D.
Somerby is and has been for five years the
supreme justice of the corporation. The
plaintiffs allege that they are members of
the organization and are entitled TO benefits
from both funds. The complaint alleges
that the corporation is Indebted for matur-
ing benefits for the remainder of the year
1892 over 81, 900 900, aud for sick and dis
ability benefits over 1925, 900.
THE BENEFITS CLIMB HIGH.
For 1898 it is indebted for maturing
benefits 100000, and for sick and
disability benefits over $650,000 For
1894 it is indebted for maturing
benefits, IS, O0O, 900; for sick and disability
benefits, $3.50, 900. For 1895, 1t is Indebted
for maturing benefits over 80 ,0O0,0 900, and
for sick and disability benefits, over $780,
900; that the reserve fund in the hands of
the branches amounts to only about 81, 200,
900, only one-seventh Of which is available
each year for the payment Of liabilities;
that the real estate of the defendant
amounts to about 81 ,000, 900; that the assets
of the defendant are composed largely of
cash on hand more than one-halt OF which
is deposited In the bank in Philadelphia, OF
which Somerby, the supreme justice is vice
president and J. Henry Hayes, supreme
trustee, is cashier, and that the bank is Of
limited capital
ExTRAvAGANT PAYMENTS.
The complaint charges reckless and ex-
travagant payment Of salaries and the ex-
pendture Of large sums Of N lney for travel
ing expenses and pretended claims amount
ing in one year to over $4,000, which sum,
says the complaint, was appropriated aud
used by Somerby in the pretended pay
ment Of expenses at different times All
the general fund has been exhausted, and
large sums Of money have been taken from
the reserve fund and placed in the general
fund, instead OF allowing ii TO remain
sacred to pay the benefits Apd claims of
members.
The complaint charges that Somerby, in
order to keep the matter secret has made
changes and alterations IN the books: that
he has appropriated large sums on account
OF charter fees and other money received by
him from the officers of local branches
and other sources; that in viola
ton of the articles OF the constitution no
meeting OF the executive committee has
been held since 1890 aud no special or
ofv -. fhaN
has been made TO the members of local
branches concerning the financial condition
of the organization since 1890; that there
has been no auditing Of the books since
1891
RAISE FROM $1,000 TO $4,000
That special session of the supreme sitting
was called at indianapolis, Ind, in 1891,
and that the only business transacted was
TO raise Somerby's salary from $4,000 to
$40 900 per year; that he prevailed upon
the finance committee to keep this report
from being made to members OF the local
branches; though the national headquarters
of the concern are in Indianapolis, Somerby
resides in Philadelphia.
Somerby has been telegraphed for, aud in
his absence the officials Of the order decline
to make any statement.
The insurance laws in several of the east
ern states have been unfriendly TO the man
ner of the Iron Halls operations The New
England states, Pennsylvania and Minne-
sofa have at times been unfriendly. New
York this year, IL is claimed, passed a
special act admitting the concern to that
state The order is the product of Erni
Kennedy's fruitful brain. Kennedy Is the
man who once organized company in In
dianepolis to build a double track narrow
gauge railroad from New York to San Fran
cisco. Tue order of the Iron Hall was insti-
tuted March % 1881, and the first sick claim
w mid in JulU of that SinOa than
$1,000 600 have been paid ous in sick, dis
ability and death benefits.
The exact assets are unknown until the
various branches are heard from, but they
are estimated by the officers to be from
81 500, 900 TO 100000.
MEMBERSHIP OF THE ORDER.
The membership of the order of Iron Hall
at the beginning of 1891 was reported t. be
SIS, 906, and in 1892, 65, 204 Its membership
at present is about 70. 900, distributed among
over LOCO branches in many Estates. The
official statementaof its assets on Jan, l.
1892 gave them at $4,000 900.
The income of the order is derived from
assessments levied upon the members. Each
assessment is 81 90 for each member, and in
the history of the order the number OF as
sessments has averaged from eighteen to
twenty a year. Its income at present is over
IS, 600, 900 year.
The Iron Hall pays a weekly sick benefit
OF so. In case OF death the holder OF pol
ICY, upon which there is no deficit, receives
81 900. At the end of seven years the holder
of policy receives 81 900 cash. The COM
pany has made one or two ostentatious dis
tributions of money. II a policy holder
lapses he gets nothing.
The order has a membership of about
twenty-five in Savannah and has been very
successful Large sums of money have
been paid out here Or sick benefits, aud the
members were confidently awaiting the
maturing of their claims with expectations
of big profits. c. "A. Gouge is the presiding
officer and Dr. Fl. s. Colding the account.
ant The news Of a movement to put the
order in the hands of a receiver was quite a
surprise TO the Savannah members, who
have been under the impression that its
financial condition was above question. DR..
Colding was seen, but he said be didn't care
to make any statement until he hears some
thing further about the affair.
DOESN'T FEAR THE RESULT.
One Of the supreme officers Of the order,
in speaking of the application for a re-
ceiver, spoke as follows: THE information
that an application has been made for a re.
ceiver for our order does not worry me in
the least, as any one can make such an ap-
phcation; but there will be trouble for the
accuser when the matter comes up in court.
i don't know who has caused this trouble