The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-02
IRON HALL FINDINGS
Attorneys of Both Sides File Pa
perS with the Superior Court.
Those of the Plaintiff Go Over the
Whole StOry-Election Inspectors
Case-City Company's Answer.

1 ptIIOT Jul StSlSI0ay AAOA LlhS ny NhC ~
torneys interested in the case. For the de-
PENDANT ex-Judge Howe filed a special find
ing. which contained a statement of facts
agreed to before the trial of the case began
and upon which no evidence was introduced.
The attorneys for the plaintiff and the re-
ceiver filed a special finding which covered
6fty-three typewriter pages. A portion OF
their findings were objected TO by ex-Judge
Howe, on account OF their containing a
reference to the constitution and bylaws Of
the order. He argued that IL they were to
be embodied as a part of the special finding
of facts they should be incorporated into it
in whole. The plaintiffs special finding gives
a complete history OF the order with it's OBJ
ject and purposes and methods adopted to
accomplish them. 1t AYERS that prior to the
fling Of the suit the officers of the order
had diverted a large sum of money from
the benefit fund. which was wrongfully
transferred to the general fund, and used
In the payment of extravagant and unwar
ranted expenses. Continuing, they find:
THAT the Supreme Justice. Freeman d.
Somberby. for the purpose of concealing the
true condition of the defendant, made
charges and alterations In the books, SO
that they did not show the true state Of
accounts; that he appropriated to his own
use and failed TO account for large sums
OF money belonging to the order; that there
had been no regular meeting of the execu-
tive committee since January, 1891, and no
report by IL to the branches since 1890, and
no meeting Of the order since May, 1889.
THAT at a special meeting February, 1891.
Somerby procured the finance committee to
recommend an increase of his own salary
from $1,000 to II .O00: that he had up to the
commencement of this action refused TO al
low a report of said meeting to be made,
although the supreme accountant was re-
quired to keep a record and prepare a copy
Of the proceedings of the Supreme Sitting
within sixty days after the close of each
session making a complete report of the
order thereto.
THAT Somerby was required to give 5000
bond. and that other officers were required
to give bond, but that the said officers had
not given bond, although at said time they
to the value of 1850 600: that such money
was not invested in bonds or securities, but
was held subject TO the control of some of
the officers, and that some of the officers
were using the said money for their per-
sonal purpose.
SOMERBY'S SNAP" BANK.
"That Somerby and others got control
of the Qron HalD bank In Philadelphia, and
that little money was on deposit there, and
that said bank was acquired by said per-
sons to use for their benefit; that Somerby.
Hayes and others caused a large part of
trust funds of the order to be taken from
il and placed in the bank to be used in car
rying on the business of the bank. and that
$4,000 at one time was thus given to the
bank without security or interest; that in
April. 1892, the State of Pennsylvania closed
the bank as inSolvent, and that upon eX-
animation it was shown that the bank
never had a paid-up capital TO exceed $780,
600. and that of this the larger part had
been fraudulently paid In and withdrawn;
tfat the court was proceeding to wind up
the bank, and would have wound Ii up had
not Somerby. Hayes and others induced
the officers and court to make an order that
when the owners of the bank should re-
store it's impaired capital by paying into Its
treasury $4,000 in cash said proceedings
L Inrrl1 10 IfrnAnNfnr-n1 thnE fhnraYanA~ IL
pursuance of the fraudulent purpose, Som
eIby, Hayes and others took out Of the
treasury Order of the Iron Hall. Indianap-
oils, the further sum OF 100000 and put II
in the bank. representing that il was in
compliance of the order of the court, and
thereby causing the court to turn back the
bank to their possession; that these acts
and Interpretations were kept from the
order UP to the time of the bringing Of this
mencement of this suit they caused other
sums OF money Of the defendant order to
be deposited in the bank, so that 1t had re-
ceived over and above the sums paid out
for it's account at least $716,000, for which
the defendant had no security other than
the soIyency of said bank and the said
ard had received besides the sums above
mentioned funds of the defendant deposited
by the officers Of the local branches to the
amount of So 1000 of the reserve fund of the
defendant.
That among the purposes for which
Somerby and Hayes acquired the bank was
to do n business of writing bonds of insur-
ance required by and from the cashiers and
other officers of the order; that at the COM
Tencement of this suit the local branches
or the order held for the defendant in the
reserve fund sums a~ggregating 81. 1850, 160. 81,
of which the only security given by 2S7 of
the local branches of the order were bonds
written by the bank as the only surety for
funds held by the officers of such branches
aggregating at the time of the commence
ment OF this suit the sum of s601. 100. 90; that
the officers of 1876 branches, holding $751;
2ll$3, were not at all under bonds.
aNThnr SnFNnTb 1lna-nn n LnA1r 81 Al.
ers had failed and refused to pay said sums
of money back to the order to make the
same good. but continued fraudulently to
hold the funds, and were unable financially
10 make the same good. and by the fraudu-
lent acknowledgement and maladministration
Of the affairs of the order by SOmerhy
Hayes and associates the said sums i'm the
bank have all been lost to the defendant
order and cannot be applied to the purposes
Tor which they were gathered: that, pend
ing the hearing of this cause in vacation
upon the motion to appoint a receiver, said
bank made a voluntary assignment, and the
fairs; that substantially all the deposits in
the bank are those of the defendant, and
the deposit of thirty-three branches i'm
Pennsylvania of the reserve fund of the
defendants, a~ggregating $51,1S0; and that
the bank will not pay on final distribution
as much as % per cent. on the indebted
ness for deposits.
SOME OF THE FIGURES.
AT the time of the commencement of
this suit there were 1,O76 local branches and
6S.2Sl members. These members had paid
into the benefit fund 1894, 1893 and had re-
ceived on account of such certificates in
sick and disability benefits 1,614, go: that
the outstanding face value of the aggre-
gate liabilities of the certificates was $780,
624.s 500 which existed less the said sum of
benefits paid, to-wit, 81, GA. 260; that the liza
bilitieS would mature in the aggregate TO
the sum of $40, 504. 1872 for the years ending
1886: that the last assessment made real
lied the sum Of S129, 1865, of which 49,
95l.25 was for the reserve fund and the
claims had been paid except those for
which warrants had been issued, aggre-
eating $102. 40, and 500. 7S5 accrued but not
paid. and for which no warrants had been
issued.
THAT at the commencement of this suit
the amount of money in the benefit fund
was 1868. 700. 13, of which benefit fund $7l6,-
coo had been placed, as heretofore stated,
in the said Mutual Bank in Philadelphia
and was not available, so that the entire
amount of available cash in the benefit
fund for the payment of the aforesaid liza
bilities was $247, 150.lS, making a deficit of
S93. AS.
From Jan. 1. 1892. to the beginning of
this suit the defendant collected by as
was applicable to the benefit fund and 1925.
23445 was for the reserve fund; and during
the same period the defendant paid out on
final sick and disability claims 81, COG. 2iS 81.
The face value of the certificates matur-
| ing in 1892 was 1850, 415. TO which would
be added other claims accruing in 1885
upon the outstanding certificates maturing
In 1892 and in the years subsequent. In or
der TO meet the maturing obligations for
the year 1892. after drawing one-seventh