Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-06-16

members who are over 90 is concerned
is invalid.
'.The law also requires a medical ex-
animation as a condition prerequisite
to membership in one of these orders,
and If there is no provision in rein
surance agreement by which members
taken over are examined, the depart
ment holds that such a reinsurance
agreement is not within the law
Il am aware, however, that in two or
three different circuit courts of the
state this particular reinsurance agree
ment between the Fraternal Tribunes
and the home Circle has been held
valid, although, so far as | am able to
| learn, members were taken in who
were over GO years of age, and no re-
quirement was made for a medical ex-
animation of any of the members of
the reinsured company.
Orders Examination.
! The opinion of the supreme court Of
Illinois, however. found in Vol. 215,
100. in the case of Steele VS.. Fraternal
Tribunes, seems TO cover this question
fully, and the department prefers 20 be
governed in Interpretation of the stat
ute by this decision.
About July l, 1909, heard that an
emergency fund of $4,000 which be-
longed to the Fraternal Tribunes, and
which was deposited in the Chicago
Title & Trust company, had DISAPPEARED,
and a few days later l heard that the
two orders had dissolved.
10
Rock Island to investigate the condi-
ton of the Fraternal Tribunes. and to
the Offices of the American Home Cir
Gle of Springfield to investigate the
books and records there.
"A report was made by the examiner
under date of July "a, which confirm
ed the statement that the $4,000 fund
belonging TO the TTibunes had disap-
peared, and the report further indicat-
ed that a large part of it had been
used to pay death claims of the Amer
lean Home Circle existing at the time
of the reinsurance agreement in No
vember, 1908. The examiner reported
further that the record showed that
many of these claims had already been
paid.
Owing to the complicated condition
Of the affairs of both societies, / sent
a copy Of the report OF the examination
to the officials Of the Fraternal Trib-
unes, calling their attention to some
Irregularities and asking them to come
TO the insurance department on Aug.
10, 1909, in order that matters might
be explained to me and arrangements
made to recover the $50 fund.
Hearing is Held.
ION the date mentioned a hearing
was had at the insurance department,
attended by Robert Rexdale, secretary
of the Tribunes; H. A Weld, its attor-
ney; J. c. Smith, assistant attorney
general; Lucius Pfouts, examiner for
the insurance department; K. NJ Whit
ham, supreme tribune at the time OF
the reinsurance; ]. F. Mcbride, SUI
preme tribune at the date of the hear
ing; o. B. Ryon, special attorney for
the insurance department, and myself.
There was considerable discussion
relative to what had become of the
$51 900 fund, and the reasons for enter
ing into a reinsurance agreement in
the first place.
After the hearing Mr.. Mcbride, SUI
preme tribune, remained for a confer
ence with the department attorney and
myself, at which Mr.. Mcbride was urg-
ed to use all efforts to recover the
Tribune fund which had disappeared.
81 advised the attorney generals de-
partment that because the two socie-
ties had separated l saw no advantage
in proceeding by him against the Fra
ternal Tribunes, as felt that the fund
could be recovered easier if matters
were allowed to remain as they were.
Mr.. Mcbride seemed willing to use all
efforts to recover the fund.
Return of $4,000 offered.
cat that time Mr.. Mcbride stated TO
me that proposition had been made to
him by the representatives of the
American Home Circle to return $751;
900 of the fund within a few days, and
when he left he agreed to inform me
when he received this part of the fund.
Aug. 81, 1909, received a letter
from Mr.. Mcbride in which he stated
he had received $4,000 In cash, leav-
ing balance of SAP 200, and in a num-
Der of letters written by me between
Aug. 81, 1909, and the close of that
year, 1 urged Mr.. Mcbride to use every
effort to recover the fund, suggesting
to him if it was not forthcoming within
a reasonable time he ought to take
the matter up with States Attorney
Magill of Rock Island
I'm January, 1910, becoming appre-
hensive that the remainder of the fund
would not be paid, i addressed a com
to the attorney general, |
again calling his attention to the sit |
uation. Mr.. Woodward. assistant at
torney general, replied. and came over
to the insurance department within a
short time and conferred with me re-
garding the matter. We still deemed
it inadvisable for the attorney general
to proceed against the Tribunes, as the
only result of such an action on his |
part would be to keep the society |
from doinQ hIISinaco in THE state opd