The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-30
Sensational Charges Against officers Of
the American Building. Loan and
Investment Society.
CONGRESSMAN MARTIN OUT
Prominent Eleventh District
Dems. Say He Must Step Down.
Well-Known Grant County Citizen in
Tr0uble-Clever Steal Worked at
Plainfield-0ther State News.
Special to the Indianapolis Journal

Speclal 10 the Indianapolis Journal
HAMMOND, Ind, Dec. 29.-Judge GiIlett,
in chambers at Valparaiso, to-day. ap-
pointed Louis i. Holman. OF this city, re-
ceiver of the American Building Loan and
Investment Society OF Chicago on the petit
ton OF Wayne c. Van Glider. The petition
sets forth that the defendant is a corpora
tion organized in the year 1891 under the
laws Of the State OF Illinois. and has leaned
in this county about $4,000. and has issued
stock to persons in this county amounting
to over $4,000; that there is now due on
the stock about $35,0O0.
The plaintiff further charges that late
Vice President Madica, OF the society, has
fraudulently withdrawn from the funds as
his alleged salary about S16,125. and that
late Secretary AIarston permitted to
withdraw about $4,000 as his salary: that
Marston and Madica have been permitted
10 withdraw from the expense account OF
the society S6,93650 more than they were
entitled to under the bylaws; that they
falsely and fraudulently permitted $4,000 to
be withdrawn from the society on a pre-
tended loan TO Idora Montgomery, but took
security. This money, IL is said. was
invested in the Armory Amusement Com
pany at Chicago. whose business is a va
riety theater and dance hall known as the
"Grotto," and in which enter
prise Marston and Nadica were the
principal owners. 1t is charged that sl2sOOo
We're loaned by the officers to corporation
known as the ST Paul Park Improvement
Company. on which the officers fraudu-
lently neglected to take proper security;
also, that 5000 Of the cash accounts have
been distracted and squandered and TO
account rendered. 1t is further charged
that NJ. Nj. Towle, president OF the society,
was permitted to borrow $50. and give
as security unimproved real estate situated
in Lake county. Indiana, which is not worth
to exceed one-half the amount so borrowed:
that the officers transferred out Of the funds
of the society the sum OF $4,000 and per-
mitted the same TO be deposited I'm a bank
in the State of Massa chusetts to cover de-
posits of stockholders; that there appears
on the books OF the society n loan OF ST.
coo made to one Stillwell, which, in fact.
he never received: that the officers Of tbs
society have failed TO comply with or at
tempt to comply with the act Of the General
Assembly Of the State Of Indiana, approved
March 13. 1893. providing for the regulation
and supervision Of building, loan fund and
saving societies; that by the fraudulent
acts OF the officers the society has become
insoivent, and that a receiver should be
appointed TO take charge OF the interest
of the Indiana members OF the society.
Marcus NJ. Towle. the president was seen
tonight, but refused to make any state
ment. Joseph G.. Ibach, the local attorney
for the society, said he had examined all
abstracts Of title for the society for loans
made in this county, and he thought that
all loans were amply secured. Messrs j.
b. Peterson and A f. Knots attorneys
for plaintiff Mr.. Peterson said that he
knew nothing Of the matter other than as
stated in the petition