The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-07-10
ANOTHER HAS
Last of the Financial Schem es Allied
to the Order of the Iron Hall.
Collapse Of the Pennsylvania Building Com
pany, Of Which Somerby Was Presi-
dent-No Prosecutions

terDrIses In Philadelphia has collapsed and
will 90 into liquidation In Q few days with
large liabilities and no assets. II has been
known for q year as the PeDnsylvania
Building Company. but it was chartered
as the Iron He'll Building Company and
enjoyed q profitable existence for some
time through the almosy exclusive patron.
sge of members of the bankrupt Indian.
spolis order.
The cause of the oompany's DOWNFALL was
to the family squsbble which led the police
to arrest the Iona list OF '~supremes" in Iron
Hall last September. 1t got a charter from
the State Departments three years ago and
Its peculiar purpose WAS the erection Of q
thirtsen-story building near Broad and
Cherry streets.
IA good many people thought the scheme
u profitable one and subscribed for shares
of stock on the installment plan. The build
ing. as designed, was . handsome one. and
it was to be the national headquarters of
Iron HALL officers. The room not occupied
by these was to be rented ous for various
purposes.
Col. Ii. g. williams was elected to man.
age the enterprise. and his energy soon got
matters into promising shape. The land
was bought of John w snAmaker for $500
$40. 1000 OF which WAS paid In cash and the
rest left in mortgages to Mr.. Wanamaker
and ii. La Barre Jayne. Then work was
begun, q cellar dug and everything was got
under way. ALI the Iron Hall people were
backing it. and Supreme Justice Freeman
to supply enough Iron Hall money to COM
plete the building In case 1t could not be
raised otherwise. For this purpose S40O. 900
was required.
Iy, L1-A. ->r.
issued by the company to tho extent of
$50. 700 and the standing Indebtedness on
the ground was paid Oft. Then the etart-
ling revelations OF mlsmanAKement IN Iron
Hall affairs at Indianapolis began to come
out. and State Superintendent of Banking
Charles II. Krumbhaar closed tho doors of
the Mutual Banking, Surety, Trust and
Safe Deposit Company, which was doing
business at 1887 Arch street. Both Iron
Hall and the building company were
closely related with the Mutual Bank. the
headquarters of the latter being in the
same building.
Colonel Williams took An open stand
against Supreme Justice SOmerby and his
allies. and In SO doing won their active en-
nifty. The Supreme Justice and the bank
officers were arrested and held in IS. 600 bail
on q charge of conspiracy. District Attor-
ney George s. Graham became Pennsyl-
vania receiver of tho Iron Hall and the
Mutual Benk. and all the facts in the series
of remarkable financial transactions be-
tween the two concerns were made public.
The excitement caused by the disclosures
and the subsequent legal proceedings is
still fresh in she public mind
The building company received o severe
setback through it's Civilizations with the
other concerns. but it made . brave effort
to survive. The name was changed to Penn
sylvania Building Company. and the head
quarters were removed to No. 1889 Arch
street. No new members could be induced
TO subscribe, and the old ones kept drop
-t~. o~N ~ H. .,es 1~e H... Ah~r
sand mem bers the company was reduced
to seven hundred, who stuck to the end.
When it be came apparent that the prof.
cot would not succeed the company tried
to get out of the tanglo the best way pOssi-
BILE. and sought for n purchaser for the
property. The Fidelity Mutual Aid AssO-
citation offered Sis. 500 for it. and this offer
would have been accepted If 1t had not
been for SOmerby and his friends. They
held 100 shares. and refused to consent to
Colonel Williams's plans unless they were
paid double the face value of their hold
ings.
Receiver Graham came into possession of
$50. 600 worth of the MORTGAGE bonds In the
vaults of the Mutual Bank and fOreclOsed
on the property. The company was help
less TO save itself. and when the sale took
place last Monday, and there was only one
bidder present. Receiver Graham bid il In
for $50. and will try to find q purchaser for
it at early date. The Fidelity people. be-
coming disguised with the actions Of Son.
erby and his friends, got land else here.
Colonel Williams Is busy winding up the
affairs of the company, and il will 20 into
liquidation ct once. He devoted . good
deal of time to a very Improbable bust
ness. and is one of the heaviest individual
losers. He spoke strongly of SOmerby's &C.
tIons, and said the bers might hava
made money If they had hung together.
Now. when their debts are paid, not enough
will be left to bother with.
The affair has caused renewed comment
over Mr.. Graham's peculiar position in the
concerns. each of which claims money from
the other, and has had nearly threo-auar.
ters of q million dollars in his possession
for nine months. Although arrested last
September, neither SOmerby, Hays nor
~Stockwell, the three most prominent OF the
alleged conspirators. has ever faced q jury.