The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-09-19
III IRON HALL FUNDS
Strong Points Presented in the
Effort to Gust Receiver Failey.
Orders Attorneys Declare the Funds
Are Being Eaten Up-Where the
Deposits Are Held.

The skirmish lines in the long-delayed
Iron Hall fight were thrown out yesterday
morning in the Circuit Court. and there
was some firing along the picket lines.
Yesterday was the day sot by Judge
Winters for the closing of the rule to an
swer taken against the defendants last
week.
The defense was prepared for q compli-
snce with the rule. and yesterday four adj
ditional pleadinRs were added to the al
ready volumnious record in this famous re-
csiysrshiD case. These pleadings were the
answer to the amended md supplemental
complaints; a petition TO require the re-
ceiver to make q report; petit
ton to set aside the $4,000 al
lowsnce to the receiver and q petit
ton by Duncan g. Smith. OF counsel
for the defense. to be permitted to with.
draw from further participation IN the
litigation.
Inc answer to the amended and supple
mental complaint admits that the pialntins
are entitled TO the appointment or q tenn
porary receiver to preserve the assets OF the
order until the members can effect q reor
ganizatIon and elect new ofncers. Dut dc.
MES the plaintiffs claim that upon q final
hearing the order should be dissolved and
it's business closed and assets distributed
among the members. In answer to the al
legged facts upon which the plaintiffs base
their claim that the order shout be dis
solved the defendant alleges shat all the
alleged frauds, m-lsmanagement, breaches
of trust and neglect of duty of the officers
and agents of the defendant order conn.,
planned of In said amended and supple
mental com plant were done and committed
without any authority or approval of the
other members of the defendants
order and without their knowledge
or consent. nor had suoh members
any knowiedae or notice whatsoever
thereof until after the commencement or
the suit.
That since the appointment of the re-
celver herein, none of said officers and
agents have had possession or control of
any of the funds of the defendant order.
nor do any of such officers or agents now
hold any office. trust or employment of any
kind In the order"
The defendants denies that it was, at the
time OF the beginning of the receivership
suit. or has been at any time since. or IL at
the present time insolvent or In imminent
danger of insolvency. and alleges that 1t
has assets largely In excess OF Its matured
liabilities.
In answer to the allegations of the plain
tiffs In relation to the mem bership certih-
Gates and sick and disability benefits of the
defendant order. which the plaintiffs claim
have matured since the commencement of
this action. or will hereafter mature. sets
forth n copy of the membership certificate.
and alleges that to meet maturing
tho reserve fund and various other
sources of revenue authority TO levy as
upon the members as q condition
OF their right to receive pay of the
cei siicetes held by them. The answer
then sets forth in full the section of the
constitution providing for the regulation
of the payment of the prOp0rti0nate
amounts to be received. in case the assess-
ment. less the reserve fund: should yield q
less amount than 81, ZOO. The defendant al
leges that certificates not matured at the
time of the appointment of the receiver
cannot. under the laws of the order. have ma.
tured since that time. as tho time during
which the order has not been In control of
the assets and business cannot be com-
puted in determining the time of maturity.
These certificates. IL Is alleged. cannot
constitute the basis of any claim against
the order in she event of the receivers dis
charge, except the right of the holders to
receive such amounts as may be realized by
assessments made after maturity.
The answer alleges that there is now on
hand. in the possession and control of the
receiver. independently of the funds in the
hands of the various State receivers. an
amount which, together with the amount
which the defendant will. as soon as the
receiver shall be discharged, be authorized
TO make, will be amply sufficient to fully
pay all the unmatured liabilities of the or
der now outstanding or that may hereafter
answer "a tfirms tina the variOus receIverships
accru, when they shall have matured." The
sppoi tied in different States were begun
and are prosecuted solely on account of
this receivershIp. and that on the dissolu-
ton of this receivershIp there will be no
necessity nor legal grounds for the CON-
tinuaac of such receiverships.
The answer alleges that there are over
1.4OO 9 Ibordinate branches and q member
ship of over 5000 persons. q majority of
whom desired q reorganization and eleo-
aOD NJ nan nAnsa " 2 -~.
poses of the order. The subordinate
branches are widely circulated throughout
this COUNTRY and canada, and when the
receiver was appointed he took charge of
the books and all the property of the order,
and has refused to allow an inspection
thereof by any officer or mem Der of the
order, and has failed 70 make any report
whatsoever of his doings. and the receipts
and expenditures No order of court has
been made allowing tue r. time in
which TO effect "a contamination. Thus
differences OF opinion have existed among
the meal bers as to the proper authority to
call for an election of officers. That for
these reasons the members of the order
could not use any of the orders funds to de-
fray the expenses of a reorganization. nor
could the members have any official COM
munioatlon with each other, and uD to this
time q reorganization has been impraotic-
able. Such O reorganization. IL is alleged,
is practicable and Is desired by a large ma
jority OF the members. The answer alleges
that since his appointment the receiver has
been allowed SO. 600 for hisown ervloes and
has paid out for attorneys fees over S23. 600,
and has al so paid out large sums. the exact
amount of which is unknown, for alleged
expenses Ia the management of the trust.
~ also alleges that since his appointment
he has had on deposit in the Merchants
National Bank. of which be Is vice presi-
dent and a stockholder. 500. coo. and in
Fletehers Bank $l00. COZ, upon which NO
interest has been paid.
The courts OF other States where receiv-
ers have been appointed. it Is allie ged, have
refused TO order their receivers to turn
over funds In their hands to this receiver,
and should the recelvership here be made
permanent legal complications would arise
which would delay the final distribution
for several years and in the meantime the
funds OF the order would be squandered in
allowances to receivers, ATTORNEYS and
other expenses and there would be great
danger OF efforts at delay on the part of
those holding the funds of the order so as
90 profit therefrom.
The defendant asks thst the PRAYER for
final dissolution made by the plaintiff
be denied and pray that instead the
court enter an interlocutory order con-
timing the present or appointing some
other receiver until such reasonable time.
TO be specified in the order. as will enable