Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-12-12
radon h,,W,h. FUNDS
GIGANTIC PLUMBER OF LODGE
TREASURY - CHARGED ~
IOWA MAN.
CLAIMS MISUSE OF
MILLIONS OF DOLLARS
Fratsrnal Insurance Mon Amazed at
Magnitude Of Alleged crooksdnsss
Among Officers Of order-speeifie
Charges, Evidently Will Fortified by
Evidence, Of Systematic Graft.


Evidence, Of Systematic Graft.
Dubuque, Dec. 12.-Fraternal insur.
ance men are utterly amazed at the
magnitude OF alleged misuse Of funds
of the Modern Woodmen Of America, as
charged in a written demand for an
immediate and exhaustive investigation
Of the affairs Of this fra,ernal organi-
cation, and delivered in person to State
Insurance Commissioner F. G. Potter,
at Chicago at the banquet of life insur-
ance presidents, by John D. Denison,
Jr., of Dubuque.
Charges of every sort and description
in the conduct of the affairs Of that So
ciety are made by Dension. He al
leges:
That political influence has been
brought to bear to throttle a thorough
inves tigation.
That an official Of the society de-
manded excess interest for himself on
money deposited for the society.
That the board of directors has pur-
Chased $2.509,000 worth Of bonds. when,
by law. they were only authorized to
purc hase 100000 worth.
That the board of directors approved
a forged bond OF a banker the failure
of whose bank cost the society a loss
of 100000 OF funds on deposit;
That the society is now standing an
other loss of $4,000 when a former Of
fetal of Beloit, Wis, is actually re-
sponsible
That the now dead banker whose
failure cost the society 100000. was
in the habit of sending out packages
of money to certain persons who are
not named.
That former Lieutenant Governor w.
A. Northcott, by letters which are pro-
duced, is influencing the election of the
officials who have charge of the money
in the order.
That u director who is member Of
the Michigan state legislature charged
the society for the days he worked Tor
the state as working days for the
Woodmen at SIS day.
Claims $4,000 Shortage.
Mr.. Denison's petition to Commits
sioner Potter concludes by saying:
las a benefit member Of the society
of the Modern Woodmen of America
of Rock Island, ILL.,, respectfully re-
quest investigation along the lines
above stated and that you call all the
persons named and examine them I'M
der oath touching the matters herein
mentioned"
The actual losses by failures Of
banks charged to the present board OF
directors, r. r. Smith. e. +. Murphy.
GEORGE W. Reilly and q, J. vByrnes,
by Denison are :s25db0, while he
charges all sorts ofspett5 graft and is
supported by F. S..Webs. IAN advertis-
ing agent in Chicago. who for ten years
had charge of that department on the
notify paper issued by the society.
The Modern Noodmen of America
is a fraternal insurance organization
having membership. Of i. zoo. 900 per-
sons. 100000 Of whom are residents
monthly income of something more
than 100000. It's headquarters are
at Rock Island, III. ..
Webb Says Charges Are True.
Webb said during the day: Il know
of all the charges made by Mr.. Dem
ison. l know they are true. and in a
vault l have the evidence which will
support many of them. l will present
my evidence to the insurance commits
sioner if l have assurance that will
be given a fair hearing.
The income from advertising to
the Modern Woodmen il now more
than 800, GOO year. know that for
many months the paper in exchanse
for advertising received Thousands OF
miles of transportation from the rail-
roads, and l have black and white evil
dence that officials of the Modern
Woodmen used this free transportation
and at the same time charged up to the
order cents mile for transportation
for every mile they travelled
Big Politicians Involved.
Denisons statement to Insurance
Commissioner Potter begins with the
allegation that former Lieutenant
Governor w. A Northcott, Of Spring
field, ILL.,, now United States attorney
for that district, Is closely identified
politically and otherwise with the Of
ficers of the Modern Woodmen. and
that he is the president Of the Wood
men Casualty Company, in which some
of the directors Of the society are in
terested.
In support Of this statement Den
ison produced copies of letters marked
"copfidentiaP' alleged to have beer
signed by Northcott, and which sci
out that he was making an exhaustive
campaign to name the next head
banker for the Woodmen. Speaking
Of Northcott's influence, Denison'i
statement says:
This information has basis il
part, at least, In the fact. a. an
informed, that when the Illinois de.
partment last examined the Moderr
Woodmen 1t submitted one report
that later certain officers Of the Mod
ern Woodmen visited the insurance de.
partment at Springfield and the origi'
nal report following said visit was ma
terially modified"
Echo of lowan Bank Failures.
In another instance Denison ask:
that the insurance department call g
j. Stewart, Of Charlton. Iowa, and ex.
anime him concerning the facts sur.
rounding the death Of Head Banker F