The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-11
ROBBED OF S169,OOO
SHAREHOLDERS OF A BUILDING AND
LOAN ASSOCIATION FLEECED.
AdIai E. Stevenson, Its President, Al
legged to Have Been Paid $500 a
Month as Attorneys Fees.

SPRINGFIELD, Ill.,, April 10.-The build
ing and loan association committee of the
Illinois House tonight adopted resolu-
ton offered by Representative Lowenthal
to investigate the Interstate Building and
Loan Association, of Bloomington, Ill. Mr..
Lowenthal addressed the committee at
length regarding the associations condi-
ton. He explained that the president of
the association, Adlai Z. Stevenson, Vice
President of the United States, was in the
habit of receiving $500 a month in payment
for his services as attorney. He also spoke
of the alleged illegal methods employed in
issuing shares of stocks. The total amount
alleged to have been illegally paid out by
the association during it's existence was
said to be $4,000. His resolution recites
many instances of alleged violation of the
statutes in making loans, ETC.; alleges that
the association is maintaining in Chicago
a expensive offics and agent at a large
salary and that the income from the busi-
of this Office does not equal % per cent.
of the expense incurred 1t alleges further
that the association, through its worthless
management in Chicago. has lost for the
stockholders at least $4,000; that about
forty foreclosure suits have been begun
against it, and that ii has acquired title to
land by foreclosure proceedings which have
not been reported in the last statement to
the State Auditor. 1t cites 1urther that ii.
G. Bum, son of T. G. Bum, secretary of
the association, is agent In Chicago, and has
as such 20 obtained from his father ,d large s
has loaned on worthless securities, because
by 50 doing ne s3t sxtor.lonate ccfnmis-
sions and Kept and refused to pay borrow
ers large sums of this money when the
same became due and payable, and allowed
liens to be filed against borrowers premises
so he could buy them up at small percent
ages, and that he constantly refused to
make good loans because applicants refused
extortionate demands made upon them for
sunk sunk and squandered thousands Of dollars
of the stockholders money" 1t cites fur
ther that the officers of the association, for
never issued to them report Of its true
condition, but continue unlawfully to use
and appropriate the stockholders money
for their own individual benefit.
Secretary T. J.. Bum, who preser~
was invited to make a statement. He adj
mitted the, facts regarding money paid
partner, Mr.. Ewing, were true with sub
stantialy the other charges made by Mr..
Lowenthal. except that the associa ton was
solvent to the extent of over s50,009 He
justified the payment OF money to Vice
President. Stevenson and his partner by
ting the association to employ any
needed to perform whatever was in its in
terests. He admitted that Mr.. Stevenson,
during period of nine months. when he
was drawing a monthly stipend of 5000,
performed no actual services.
Mr.. Lowenthal said he was prepared to
personally substantiate everything he had
charged, except that the association was
insolvent. The committee voted to adopt
the resolution with the insovent state
ment stricken out.
After the committee adjourned Mr.. Bum
said that Vice President Stevenson never
drew any salary from the association. His
law partner, Ewing, drew salary for a
while attorney, and Bum supposed that
part of the money paid to Ewing went to
Stevenson. Mr.. Bum asserted that the
charges in the resolution are garbled and
generally false