Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1901-06-26
DIR. MARSHALL
FINISHES AUDIT
Will Report Loan Association
to AttOrney-Ccne
IT'S BUSINESS is SUSPENDED
Insurance Commissioner IniCrS That
Association Is in InSOIyent
Condition

Before leaving the Office of the Guarnn-
tee Building aud Loan Association yes
terlay afternoon. where State Insurance
Commissioner Marshall has been for sew
cral days making an audit of the assoc
cations books. he posted notice ON the
office door that the association was closed
for business. No sooner had he done so
than Harry Whitoman, acting presi-
dent OF the association, removed the pla-
card ana in consequence there is much
bitterness between commissioner and
company.
That DR.. Marshall acted as he did the
officers of the company say is beyond
their understanding. Ii is true that the
audit now being made will show that the
associations liabilities are not equal 10
the assets, but the company officers as
sert that the association is able to meet
all its obligations and will do 80, and that
to close the Office would be detrimental to
the business.
An examination of the law creating the
office of insurance commissioner Il Is al
legged does not disclose that the commits
s.oner may close the Office of any loan
association doing business in the State.
II gives him authority TO audit the books
of any company. Should this be denied
him, he has authority to impose fine OF
500 on such company so refusing. the
judgment TO be collcctable within thirty
days. Should the judgment not be salts.
fled the commissioner has the power "a
revoke the associations license.
| In this case the association permitted
an examination of its books and courts d
final announcement from the commits
sioner, but as IL has a license to conduct
business until January ], 1902. its oficeri
do not intend to discontinue business un
iii license Is refused.
J.. Irving Handy has been retained hy
the association TO defend its interests.
DIR. Marshall said this afternoon tha
business of the association is suspende,
for the present. His assistants, Charlie
II. Jones, Of Georgetown. and Professo
! William A. Reynolds. of this city. ar,
preparing statements which will be pre-
scented 10 Attoney-Gcneral Ward upoi
his return from Dover this evening. Flu
ture actions of the commissioner respect
ing the association will be at the direction
of Mr.. Ward.
Concerning the trouble growing ont O
the posting of the notice that the asso
citation was closed to business. Dr. Mar
shall Inferred that in DONG so he ha1
acted under the United States statut,
which makes liable to Indictment an,
banking officer who receives money after
an organization is known 10 be- insolyent
WHO OFFICERS ARE.
Not until to-day was it known who th,
association officers are DIR. Marshal
announces these names: Harr,
Whiteman, vlce-president william W
Knowles, secretary; Miss Myrtle White
man, assistant secretary: Calvin White
man, treasurer. Directors: Dr. John
Palmer, Garrett $. Smith, aud officer,
before named. Two vacancies exist be-
cause of resignation. An executive com
mittee composed of Harry Whiteman. w
W. Knowles and Calvin Whlteman con
Quoted the business. Harry Whitemar
also is the associations counsel DIR
John Palmer was president of the 0rgani
zation and he resigned. lie intended In,
resignation 10 carry with it notice 0i
withdrawal from the directorate but th,
books of the company do not show th,
entry.
The loan has twenty-five branch Of
fees in the following cities aud towns.
Newark, Delaware City, Harrington
FELTON,. Viola. Wyoming. WOodside
Georgetown Milton, Dover, stanton
Middletown. Smyrna, Lewes, Scaford
Milford. Highlands. Henry Clay, Green
wood New Castle. Media. West Chester
Oxford Kennett Square. More than
1900 people are stockholders