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

LACA Q6SQ do Tic tSI1CIS Will NAlNAA "
rob another prosperous company.
Among the companies named in the
Investigation as having gained or lost
by recent juggling of corporations are
the Fraternal Tribunes, the American
Home Circle, the Mutual Aid society,
the Farmers Federation, the Church
Alliance. the Royal Benefit society, the
Ancient Order of United Workmen, the
Independent Order of Mutual Aid, the
Mutual Reserve, the Knights of the
Globe, the Freeport Life Endowment
company, and the Fraternal Crystal
Life.
One of the most pexpleshrdluetaoin
One of the most perplexing series of
chain operations by which several large
reserve funds disappeared is that of
the American Home Circle, said to
have profited by absorbing the Frater-
nal Tribunes This company absorbed
the Mutual Aid company about four
years ago. Then in turn it absorbed
the Farmers Federation, ard the
Church Alliance.
Laws Declared Inadequate.
Nothing definite seems TO be known
of its own reserve or that of the COM
panies which it absorbed. Recently it
joined forces with the Royal Benefit
company of Washington. The latter
company is said to have had large
reserve fund at the time of the mer-
ger three months ago.
The most startling situation which
has resulted from the investigation is
the admission by state officials that the
laws of Illinois leave them helpless to
prevent many of the alleged robberies
perpetrated on the innocent policy
holders in fraternal companies.
States Attorneys Magill of Rock Is
land county and Burke of Sangamon
county are said to be planning to
launch a bombshell into the legisla-
ture in connection with an investiga-
ton of the influence which has affected
the passage of the bill mentioned by In
surance Commissioner Potter. Origin
ally the bill was to have gone into eff
feet last July, but legislative meas
ure was lobbied through giving the in
surance companies an extension of
year.
Witnesses who will testify tomorrow
before the Rock Island grand jury are
already on the ground. and in all 200
have been called. Two witnesses have
been summoned from Washington, D.
c., one is coming from Seattle, and
several have been called here from
Arizona. A number are summoned
from Chicago. One is a prominent
politician of the state. Scores have
been called from the lower end of the
state to tell of affairs of the American
Home Circle.
Letters are coming to States Attor-
ney Magill in every mail, with new in
formation of graft and questionable
deals in the societies involved in the
investigation.
Chicago Men Offer Aid.
He has received numerous letters
from Chicago offering all the assist
ance that the nine tribunals of the
Fraternal Tribunes there, with 5000
members, can give him. A Peoria
man has written, asking him to inves-
tigate the dismissal of suit filed in
The Peoria circuit court to prevent the
of the Fraternal Tri5unes
and the American Home Circle. This
man says his suit was dismissed with
out his knowledge or consent in March.
He sought in a suit to bring about res
toration of the missing reserve fund
of $4,000 of Fraternal Tribunes. 1t is
not now known whether any attention
is to be given to this matter here.
Potter Makes Defense.
Springfield, May 25.-Lack of state
of fraternal beneficiary
societies makes possible the misuse of
funds such as is alleged to have been
the case in the Fraternal Tribunes.
This is the contention of Fred ". Pot
ter, state superintendent of insurance,
in a statement, answering insinuations
that his department is partly response.
BILE for the disappearance of $4,000
Of the funds of this society.
Superintendent Potter says he was
aware several months ago of the situa-
ton in the Fraternal Tribunes. but
was poweriess under existing laws 20
interfere.
After reviewing the case and stating
that the $1,000 had been recovered
from former officers of the society, |
Potter says it was he
who suggested 20 former President
Mcbride that the matter be brought |
TO the attention of the Rock Island |
county grand jury.
Potter concludes his statement as |
follows: Under the insurance laws |
IF Illinois there is at present no stand !
ard of soivency for a fraternal bene-