Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-05-25

} STATE - AI1OkN
fciary society. One of these societies
may make a report to this department
| showing ii TO have unpaid death
claims far exceeding its assets, but we
are unable to take any action under
the law. On July l, 1910, law will go
into effect providing for a standard of
solvency for these associations"
Money Paid Back.
Restitution of Fraternal Tribunes
funds was made as follows: K. NJ
Whitman, a banker of Aledo and for
mer head of the Tribunes, $4,000;
Dr. A. L. Craig, Chicago, $1,000 and a
note for $500, and $4,000 by George
Kenny, an attorney of Springfield rep
resenting unknown parties.
When the news cf the merger with
the Home Circle reached State Super
intendent- of Insurance Potter he dis
patched examiners TO look into the
affairs of the Tribunes. This examiner
reported the disappearance of the
$4,000 It was also found that Whit
ham had been head of the Tribunes,
but had voluntarily given UP that posi-
ton, which paid $500 year.
From the Chicago Title & Trust
company the money found its way to
Springfield bank, according to a dis
patch, and was payable By draft to
Wilson, Walters, CARRIER and McEl-
vine, members of the board of regents
of the Fraternal Tribunes. 1t was
checked out soon, Wilson and CARRIER
affixing their signatures. The hanks
officers have no record of the payses.
No Law Governing Mergers.
Springfield, H., May 25.-It is learn
ed today that Mr.. Potter took an &C
tive part in securing the return of the
money and reports of his examiners of
the affairs of the two organizations
show that the money found its way
back into the treasury of the Trib-
unes
In the first place, there is no lew in
Illinois governing the merger of fra
ternal benefit associations. They can
do as they please about this matter
and the state insurance department has
no authority or power whatever to
sanction or prevent. 1t frequently
happens that merger is not known to
the department for months after it has
occurred
Nor is there any law which fixes the
standard of solvency for these organic
atoms. A new law which goes into eff
feet next July specifies such standard
and provides that the department must
proceed against any fraternal that is
behind 80 days in the payment of its
death claims.
Absence of Law Made II Possible.
1t is the absence of these two very
vital laws which made the merger of
these organizations, one a moribund
and the other a live institution, with
$4,000 in its treasury, possible.
The officers of the American Home
Circle became the officers of the Trib-
unes, which was the name retained by
the merger organization.
1t appeared that the constitution of
the Tribunes provided that there should
of the membership. This was not Sc
cured, and threats of legal action were
made by members of the order to dis
solve the merger.
AS result the merger was dissolv-
ed voluntarily, but during the short
union the $1,000 of the Fraternal
Tribunes reserve or emergency funds
disappeared.
Potter Sent Out Examiners.
When the news of the merger reach
ed Mr.. Potter he dispatched examiners
to look into the affairs of the Tribunes.
This examiner reported the disappear
ance of the $4,000. 1t was also found
that K. M Whitman had been head of
the Tribunes, but had voluntarily, "for
the good of the ORDER given up that
position, which paid $2.50o per year.
Mr.. Potter called in the officers of the
Home Circle, namely, T. w. Wilson, |
NJ G. CARRIER, S. S. McElvaine and
others of this city, and the old officers
of the Fraternal Tribunes, including
Whitman and the new head of the or
der,NJ. F. Mcbride of Chicago.
Money Must Be Returned.
Potter told the group that the money
must be returned, and he instructed |
Mcbride that it was his duty to see,
not only that it was returned, but also |
that criminal action was instituted
The first restitution was of $4,000 |
in cash from Whitman. DR. A L. Craig |
of Chicago paid over $4,000 in cash and
gave note for $500 making $4,000. |
and $4,000 was paid by George Ken
ney, an attorney of this city, according |.