The Montgomery advertiser., 1901-07-14
STATEMENT
 FROM HINSEY Repg $ to Attacks Made
 g on Him. EXP 3 INNS INVESTMENTS
Declares That AnimuS Has
 Inspired His Critics.
Claims That His Opposition to the Election of Fethers as Supreme Chancellor is Back of
 It All.

I
 | Chicago, Ill.,, July 13.-John A. Him. sey. Imperial Prince of the Knights of Khorsssan resigned his position late this afternoon. He stated that he did so, believing it to be the best so as to relieve the order of any embarrass- ment from the publicity given to the | attacks made on him in connection | with the Endowment Rank matters. The officers of the organization in specie session tonight accepted the resignation. Frank H. Clarke of De- troit, Mich, becomes Imperial Prince. and hs has appointed John H. Holmes of St. Louis. Mo, as Imperial Basha.
 Hinsey today made this statement regarding the report of Supreme Chan cellor Ogdon H. Fethers. and the Board of Control to the special conven- tion of the Supreme Lodge just held in this city. | "Fer the benefit of those of my | friends who do not know the situa- ton. l want to say that there IS great deal of animus on the part of Fethers and his followers back of all this proceeding. The cause for this bitter feeling on his part consists Of 1 my refusal to support him in 1S96, and again in 1888, for Supreme Vice. Chan cellor. He succeeded in being elected in the 1898 convention held at Indian apolis, and after the contest was over. threatened to drive me cut of the or- der. I again refused to support him for Supreme Chancellor at the Supreme Lodge session held at Detroit in 1900. | This action of mine seemingly added to his eamity to me. l Being Supreme Chancellor, he was ex-ofEicfo member of the Board Of Cen trol, and was president of the Board 1 re elected at the Detroit convention. They claim that voluntarily resigned --that is not true ;they made 1t ini- | possible for me Co continue as Pres ident, having long previously contended that the President of the Board ought I to devote his entire time to the busi- ness of the rank and bo paid salary commensurate with the service. Talk ing advantage of this expression of mine, resolution was offered to that effect and to be consistent l had to vote for 1.-the resolution passed and
 
 dowment Rank could not pay salary which could afford to accept These are the exact circumstances upon which 1 resigned, and no other.
 When l resigned as President, l also desired to resign as a member of the Board, but my request was vigorously opposed by the whole Board, and l concluded to continue as a member of the Board. did not receive copy of n. A sI- -lI. 1I til 10 o'clock on the morning of the convention, and knew nothing of it's contents. It is a very veluminous document and contains a great many subjects. I desire to. make some state ments regarding the items which al- Jude to me.
 As to that portion of their report l referring to overdrafts. amounting to S75, ,000: This overhaul became neces- sary because of the failure of the City National Bank at Fort Worth. the depository of the rank, designated in compliance with Supreme Lodge law. At the time of the failure of that bank, the rank had about SAL 900 on deposit with it. There was from $T0,o0O to SIS, ,000 of warrants afloat that had been sent out to beneficiaries day or two previous to the closing of the bank, in payment of death claims. To pre- vent protest of these warrants on the part of the receiver at the bank, 1t was necessary that we at once provide for the amount of money. The ar rangement was made with the First National Bank of Chicago, by deposit ing with them collaterals. At the next | meeting of the Board of Control. 1t was determined to treat the $35,0OO of collateral deposited as cash and deduct them from our assets in preference to | advertising an over1raft. This action was confirmed by the then Board of Control. The overdraft was reduced from time to time, and the collateral l redeemed.
 The m4thod adopted by the Board of having the secretary of the Board debit all warrants drawn while the bank was not permitted to debit our deposits, except as they paid the war rants, resulted in difference between the record of the Board of Control ani the bank amounting frequently from $50. 900 to $7O.oo0. Thus our books might show an overhaul of from $50, 900 to $70.000 and the banks books show a balance in our favor.
 This report claims that the financial | condition at the time certain invest ments were made did not warrant the investments being made, because there I was an overhaul. As to any other overdrafts noted in the draft of the Board other than the $7o,e00 above re ferred to, I assume the Board, on the dates of those investments, find thai our books show an overdraft. but the bank book at the same time would show a credit in our favor.
 AS to that part of the boards tIe- port referring to loans made to sm- ployes of the Chicago. Milwaukee and St. Paul Railroad Company by which company I am also employed. it is true to the extent of some loans being made and in each instance ample security taken for the money loaned-and in al cases the principal and interest of the loans were promptly paid to the en- dowment rank, except the two loans referred to, made to George F. Baker and E. L. Parker, on real estate. Tn these eases the parties purchasing the |, property applied for loan from the endowment rank. After an examina ton as to the value and title of th' property. I agreed to make the loani