The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-07-13
ENDOWMENT RANK
DETAILED STATEMENT ABOUT HIM.
sEY's MANAGEMENT.
Secretary of state Union ID. Hunt, n
Member of the Rank, Returns
from Chicago.
CHARGE MADE AGAINST HINSEY
MIR. HUNT SAYS MUCH ROTTENNEss
WAS UNCOVERED.
Hinsey when Called Before the
Investigating Board.
BIG SUMS UNACCOUNTED FOR
HINsEY WILL BE PROSECUTED FOR
HIS MIsDOINGS.
The New Table of Rates Adopted mt
Chicago-Endowmen Rank VIII
Make Up Defcit-An Address.
An Astounding Statement Made by
Hfnsey When Called Before the
investigating Board.
BIG SUMS UNAcCoUNTED FOR
HINsEY WILL BE PROSECUTED FOR
HIS MIsDOINGs.
The New Table of Rates Adopted mt
Chicago-Endowmen Rank VIII
Make Up Deficit-An Address.

1.-The condition OF the Endowment Rank,
Knights of Pythias. as revealed by the
investigation of the insurance commission
ers OF Illinois and Connecticut, acting in
conjunction with the board of control of
the rank. is as bad as anything of which
/ ever heard in the way of financial rotten
ness" declared Union B. Hunt, secretary
OF state. last night.
Mr.. Hunt is a prominent X. of P, being
a past grand chancellor and a supreme
representative of the Indiana lodge at the
session OF the Supreme Lodge in Chicago.
from which he returned yesterday. He
talked freely and Interestingly of the reve-
lations concerning the methods OF Hinsey
and those implicated with him in the oper-
ations that would have wrecked the En-
dowment Rank If allowed to continue any
longer.
"At the time the session of the Supreme
Lodge was held in Indianapolis" said Mr..
Hunt, lit was suspected that there was
something wrong with the Endowment
Rank. The delegates from Indiana. Iowa.
Kansas and Missouri all favored an in
vestigation at that time. but the older men
in the Supreme Lodge outnumbered them
and the movement for an investigation was
defeated. The Supreme Lodge at that time
was itself a little short financially, and
In order TO throw dust in the eyes of the
men at the head of IL and deceive them
to the true condition of the Endowment
Rank Hinsey, president of the rank. Of
fered 10 and did loan the Supreme Lodge
s20.00o 1t was subsequently, found that on
the very day Hinsey made this loan the
bank account of the Endowment Rank was
overdrawn exactly $4,000.
FETHERS DEFEATED HINSEY.
about this time one OF the Pythian
papers advocated the selection of Hinsey
for supreme chancellor as against Mr..
Fethers, because Fethers had urged the in
vestigation of Hinsey's affairs and the
paper declared he was an enemy OF the
Endowment Rank. However, that move
ment fell through and Fethers was elected
supreme chancellor at the Detroit session
of the Supreme Lodge. Charles f. S. Neal,
of Lebanon. Ind, was made a member of
the board of control of the Endowment
Rank. When the Supreme Lodge adjourned
at Detroit Sept. the board OF control
Immediately got together and passed
resolution forbidding the payment OF any
more funds out of the Endowment Rank
other than mortuary benefits until after the
books had been investigated.
"The board then proceeded to Chicago the
very next day and asked to see the books.
The secretary OF the board did not produce
all OF the books and. in fact. some Of the
books missing yet. But these men
found enough to justify the making of an
investigation Mr.. Hinsey was president
of the board. The board permitted Hinsey
to introduce a resolution requiring the
president to give all OF his time to the
work. which was an excuse to enable him
(Hinsey) 10 offer his resignation. Since
they did not know the true condition of
affairs. the board did not think it neces-
sary to take summary measures with
Hinsey. but at the same time they wanted
him out and. therefore, permitted him TO
resign.
''Mr. Neal was elected president of the
board OF control and he Immediately began
an investigation, together with Charles $.
Hardy, general counsel OF the Endowment
Rank. They soon discovered a very bad
condition OF affairs. Mr.. Neal declared he
did not propose to make any false affida-
Wits In order that the Endowment Rank
might do business In these States. and he
accordingly went TO the insurance commits
sioner OF Illinois and demanded that that
Official assist in the investigation. At that
time Supreme Chancellor Fethers was on
his way TO San Francisco with Major Gen.
eral Carnahan and Adjutant George w
Powell OF Indianapolis. 10 see about some
matters connected with the meeting of the
Supreme Lodge IN that city next year. and
Mr.. Fethers was wired 10 return imme-
diately TO be present at the investigation.
ALWAYS AN OvERDRAFT
1.-The insurance commissioner OF Illinois
invited the insurance commissioner OF
Connecticut 10 assist in the investigation.
II was found that Notwithstanding the fact
that the reports OF the board each day
showed a large balance IN bank there was
IL,
ance a large overdraft was not shown.
"As I remember the overdraft at one
time ran almost as high as 100000 Mr..
Hinsey made a number of loans with bad
security 10 employees OF the Chicago. Nil
waukee & St Paul Railroad, OF which he
is claim agent. He made an investment in
bonds CT the Lexington Hotel on the Mich
igan boulevard In Chicago, and other bad
investments.
at the time he was making these un-
sound investments Hinsey had outstanding
claims of the Endowment Rank The
whole thing was crooked IL was found
that The board had n run ,sp up a printing bill
the year 1900. and OF this amount the j. NJ
w. Jones Printing and Stationery Com
pany received $2z. .633 "a The remainder OF
this enormous printing bill was divided
among about fifteen other firms. The in
vestigating committee In its report says
that the members OF the committee We're
unable 20 find a considerable number OF the
warrants and vouchers for money said 10
have been paid 10 the Jones Printing Com
pany.
"a curious loan discovered by Carlos
Hardy. general counsel. and Mr. Neal
president OF the board. was for 5000
purporting 10 have been made 10 the New
York law firm OF GOOdhcaI: AZ GOOdhcart
Mr.. Hardy happened 10 be acquainted with
the Messrs. GoOdhcart and wrote them In
quiring about this loan. They replied that
they had never received one dollar OF the
Endowment Ranks money. IL turned out
t..sI the draft for 5000 supposed TO have