The Portland daily press., 1892-08-01
THE IRON HALL.
Application for Receivership Made in
NEUTRALITY-SUSPICIOUS. and Methods OF
This order-S1OoO for @3O0-Large Lo-
cal Branch in Portland.

Considerable of futter has been
caused in this vicinity by report from
indianapolis that the superior court in
that city has been petitioned to appoint
receiver for the Order of the Iron Hall.
The complaint charges that the order is
totally insolvent, and that its founder
and vice president, Freeman E. Somerby
of Philadelphia, has misappropriated
large sums.
The Order of the Iron Hall is very
widely extended endowment and benefit
order. Its principal feature is the pay
ment of $1,000 to each of its members
who pay the assessments for a period Of
seven years. There is also sick benefit
feature, whereby weekly sums of $25 are
advanced in case of sickness, and de-
Quoted from the $1,000 endowment when
it becomes due. The order was founded
in 1881, so it's first series of endowments
did not become due until 1888. 1t has
therefore been tested as financial
scheme only about three years. OF
course if the assessments should be made
large enough it would be perfectly posi-
BILE to pay endowments of various sums
from $500 to $1,000 at the end of seven
years. But the peculiar feature of the
Iron Hall has been that it protested to
be able to pay these endowments on very
small assessments. For instance, those
who have already drawn their matured
endowments have each got the $1,000 at
an outlay in assessments of only about
$500. Of course the opportunity of get
ting $1,000 for $500 is very alluring, and
the order began to grow rapidly when
the scheme got fully noised abroad.
There are many branches in Maine, in
Guiding four in Portland, two for women
and two for men, including about 800
members. Mr.. Benjamin F. Freethy is
accountant of the principal branch in
this city, which has a reserve fund of
about $4,000.
pay the endowments of the first series,
which was composed of the comparative
ly few members who joined in the first
year of the order; for the big tide of new
members was pouring flood of money
into the order. But as time goes on the
obligations mount up with tremendous
rapidity, and. of course there is limit to
the new membership. The complaint
filed at indianapolis charges that the or
der is totally insolvent, that it has ac-
crued debts for 1892 of $1,325, 200, for
1892 of s., $50, 900, for 1894 of $6,650,00
and for 1895 of 9,65O,0o0, all of which
sums are for maturity and disability ben
efits.
The insurance commissioner of Maine
barred the order out of this state at first,
but finally the legislature was prevailed
| upon to let it in.
The officers of the order, both national
and local, declare that it is all right, and
that the present movement is a scheme
of its enemies. Mr.. B. F. Freethy of this
city has received telegram from
Supreme Justice Somerby stating that
no receiver has been appointed and that
none will be received.
The news of the trouble that has come
to the order has caused much interest in
the city. A great number of people be-
long and many more have been solicited
to join, but have declined after studying
the scheme. Of course those who did
not go in are now having their jokes at
the expense of those who did. Several
| policemen are on the list of investors.