Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-05-26
STORY OF.LOOT
is BEFORE JURY
insurance Scandal Investiga-
ton, After Week Recess,
Resumed Today.
FIRST WITNESSES ARRIVE
]. f. Mcbride, Who Starts Inquiry.
Here With Records and Data
Note Holders Summoned.

d n,
island county grand jury at o'clock
this afternoon resumed the hearing
Of testimony in the chain OF cir
cuinstances that eventuated in the
wrecking Of the Fraternal Tribunes.
While the investigation here has pri-
MARTY to do with the looting Of the
treasury of the Frater1al Tribunes,
following the merger with the Amer
lean Home Circle, leads of start
ling character have cropped out that
show that at least q dozen fraternal
insurance societies were victimized
in similar fashion, the total loot rum
ming up to a million dollars.
Among the witnesses on the
ground today in response to sub
poenas from this county were John
r. Mcbride of Chicago, who was
elected to head the Fraternal Tri-
buness after the dissolution with the
Home Circle, and who made the gem
efaI fund embezzlement discovery;
John q. wolfenberger, q Peoria at
torney, who represented members of
the Fraternal Tribunes who petition
ed for an Injunction to restrain the
new directorate of the merger in fur
fund, proceeding that was myster-
iously dismissed; and Arthur L. Cald-
well, son OF Congressman Ben Cald-
we'll. Springfield, and Miss Marguer-
lite A. McIlvaine. assistant cashier o.
the Farmers state bank, Auburn,
Ill, both Of whom, according to the
records of the Fraternal Tribunes
order, received settlements on notes
of $500 each from the general
fund of the latter society after the
merger with the American Home Cir
Gle. These notes, like numerous
others, it is claimed. were not of
record when the negotiations were
on between the two orders looking
to the consolidation, and did not ap-
pear until after the funds Of the
Fraternal Tribunes became available
to the new administration.
Mcbride VIII Tell Names.
Mr.. Mcbride. it is anticipated, will
tell the grand jury the names of the
men who are said to have wrecked
many insurance societies through
fraudulent mergers and stolen a mil !
lion or more from helpless policy |
holders He brought with him from
Chicago an armful of records and |
data said to bear the signatures of
many men prominent in insurance |
circles, and of certain state and fed |
eral officers.
1t became known today that a dis
cevery has been made that previous |
to the merger Of the Tribunes and |
the Home Circle, a three-cornered |
combination, the name of the third !
society not being divulged. was eff
fected at Springfield, at which Ger
tain officers Of the three orders re-
signed for a stipulated price, and |
thatsa certain state of1cial, whose ST.
lence was essential to carrying |
through of the deal, accepted a mon
etary consideration for overlooking !
the irregularity. 1t was claimed to-
day that a certain order, with head |
quarters in Springfield, is making |
claims that it has taken over the |
membership of the Fraternal Tri- |
Dunes. 1t was reported further that |
the American Home Circle. despite |
that its charter was surrendered last
October, was still collecting dues |
from old members.
witnesses Are Missing.
EIOCOSb servers LTOm fSOCk lSl6QQ
county who invaded Chicago yester.
day with subpoenaes for witnesses to
testify today before the Rock Island
grand jury, found that several men
said to have played prominent part
In the Chain system of looting insur.
ance companies had left the city with.
out leaving new addresses.
One OF the most important witnesses
subpoenaed. whose identity is carefully
Rock Island, is the man whose name
appeared on the books Of the Frater-
aal Tribunes as having received $14, 900
On an unsecured promissory note. He
denies having signed the note or re-
ceiving the money and is said to have
been promised immunity for testify.
Ing.
CONSERVATION was caused through
out the state when 1t was found that
practically none of the officers OF the
Insurance companies involved had been
1t was pointed out that
had they been subpoenaed their testi-
nony might grant them immunity from
Indictment. The only officers of the
Tribunes subpoenaed were Robert Rex
dale, treasurer, and H. A. Weld, gen.
sral counsel Of the order. +;
C. r. Hatfield Is In the East.
II was Rexdale who informed ]. r.
Mcbride. Snnreme tribune, of the rob-
bing of the company's treasury and I
aided him in regaining $4,000 from the
officers who authorized it's disbursa-
ment. Weld is said to have waived
immunity. Z
One of the men whom process servers
found mot at home" was Charles F.
Hatfield. secretary of the Western Re
view, an insurance publication with
,faces at SO Clark street, Chicago He
IS said to have been identified with the !.
olans which merged number of insur- ,
lnce companies under circumstances
similar to the union of the Fraternal
rribunes and the American Home Cir
lie in November, 1908.