Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-07-14
ACCUSED IN THE ALLEGED INSURANCE
FRAUDS TO BE TRIED IN SEPTEMBER

| the majority OF WHICH,, II Is SinlLiSA -
will be shown, had been previously set
tied by the American Home Circle, and
! by satisfying of notes that are claimed
now 10 have been fraudulent. These
notes were not shown to have been an
obligation of the American Home Cir
! Gle during the merger negotiations.
| The Last of the Tribunes.
''The Fraternal Tribunes, of which
became head after the dissolution Of
| the merger. collected its last assess
ment from the membership last
/ March" j. F. Mcbride said today.
The Fraternal Tribunes has not been
doing business since. l had nothing to
! do with the merger negotiations in fact,
/ I was utterly unfamiliar with the de-
/ tails of the transaction until after l
| had been placed at the head of the Fra
| ternal Tribunes in an effort to pull the
society back on its feet When l be-
gan TO delve into the records of the
/ order it first dawned upon me that
something serious had taken place
| during the combination. l discovered
that the $57, 900 reserve fund had been
| stoleu-theTe is no other way of put
| ting it. l reported the facts to the
state insurance department. and with
its assistance l secured the return of
the full amount. I learned that the
greater part of the reserve fund had
been used by the officers of the Amer
lean Home Circle in buying the offices
of the Fraternal Tribunes.
Piece of Bold work.
ct was a bold proceeding. to say the
least, | used the $4,000 in satisfying
the death claims of the Fraternal Trib-
unes, and there are only few Of these
that have not been satisfied in full.
did not figure that the Fraternal Trib-
uneS was in any way responsible for
the obligations of the American Home
Circle, and accordingly these were ig-
nored by me as the head of the former
society. l have made move for the
dissolution of the charter of the Fra
ternal Tribunes, and that will be the
final end of the order. In my investi-
cations | learned that the money col
Iected as premiums during the six
months that the two societies were
merged was used up by the men in con-
troll in excessive salaries, in duplicate
ing what l believe it will be proven in
court were false obligations framed as
a means of diverting to private chan
nels the funds that were coming into
the treasury of the Fraternal Tribunes
from its policy holders.
Good Word for RexdaIe.
Craig, Whitman. Weld and ReXdale
were paid TO resign their offices with
the Fraternal Tribunes, but I never
have believed that Rexdale had Grim
inaI intentions when he was drawn into
the compact. This investigation ought
to serve as a lesson in Illinois and 9th
er states to the legislatures and bring
about the enactment of more stringent
laws of regulation of fraternal insur-
ance societies. A merger such as that
of the Fraternal Tribunes and the
American Home Circle should not have
been possible in Illinois or in any other
state. 1t was nothing more or less
than a plain case of highway robbery
of helpless men, women and children"
To Mr.. Mcbride is due the credit for
the exposures of the wreckers of the
Fraternal Tribunes, and the grand jury
yesterday, DeIOIe IT'S duJOul lILLlGlIs
called him into the court room and ten
dered him a rising vote of thanks for
his valuable assistance rendered that
body in getting at the bottom of the
facts needed in finding indictments.
Mr.. Mcbride is in the insurance bust
ness in Chicago, but he is a frequent
visitor here, being one of the vice pres
idents of the Northern Life Insurance
company of this city.
DOering as Host.
After adjournment yesterday morn
ing the grand jury accepted an invi-
tation from Henry H. Doering, one of
the members of the investigating body,
to have dinner with him at his home
on Fourteenth avenue and Thirty
eighth street J. F. Mcbride, who in
stigated the investigation; Deputy
Sheriff O. L. Bruner, and Mayor George
w. McCaskrin were also at the affair.
A sumptuous repast was served at the
Doering home and fine time was en-
joyed Mr. DOering, whose resemblance
in avOirdupOis particularly, gained him
he title of the Taft member of the
ary. was obliged to wear the tile pre-
cuted him by his fellow jurors during
he feast.
Note is Only Asset.
The one remaining asset of the
Fraternal Tribunes, aside from fur
niture in storage here, is a note
for $500, given by DR.. A. L. Craig
at the time he, with others of the
officers of the Fraternal Tribunes,
turned back the money he had re-
ceived for resigning his office. The
face of the note represents the diff
ference between the cash turned
over and the whole amount Craig re-
ceived as his bonus. He paid
back in cash, $4,000. The note was
given over to J. F. Mcbride, the SUI
preme tribune of the Fraternal Tri-
Dunes. w. T. Knowles, a Henry