Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-06-03

1t is not likely that any indictments
will be returned before next week.
Wife Tells of Insurance Loan.
Chicago,s June 3.-With the intima.
ton of a possible Indictment for per-
jury before him Max ]. Frankel, real
estate dealer at 1742 West Division
street. last night revealed the secret OF
the $4,000 item in the accounts of
the American Home Circle, whose
tangled merger with the Fraternal
| Tribunes is now being investigated by
the Rock Island county grand jury.
1t was Mr. Frankels wife, Rose
Frankel and not Frankel himself, who
loaned the $4,000 to Thomas w. Will
son and Michael G.. CARRIER, president
and secretary, respectively, of the
American Home Circle. And it was
Mrs. Frankel. and not her husband, TO
whom Wilson and CARRIER repaid the
$4,000 at about the time the Fraternal
Tribunes reserve fund of $57 900 is
said to have been Withdrawn from the
Chicago Title e Trust company's bank.
! Mrs. F'rankel is wealthy in her own
right She is the daughter of the late
! Samuel Sternberg, who is a multi
millionaire shirt manufacturer of New
York, and she inherited her fortune
from her father.
Husband Did Not Know 1t.
| At her residence at 1341 North Ma
/ plewood avenue last night Mrs Frank
| ell told a reporter for the Tribune the
story of her dealings with the officers
| of the American Home Circle. She
IL h.. II
and CARRIER through her husband who
was grand deputy of the order for
! Chicago. She said that they applied
| to her for loans and that she loaned
/ them many thousands of dollars with
out her husbands knowledge. She had
kept the matter secret from him, she
said, until after he had twice appear
| ed before the Rock Island grand jury
to be questioned touching an official
record which read that $4,000 had
/ been paid to NJ. ]. Frankel.
/ Mrs. Frankel is a confirmed invalid
and she was lying in bed when she told
/ her story.
/ After having directed her husband
to hand her a small memorandum book
which was in drawer of her bureau,
| the sick woman propped herself on
| her pillows, opened the little book,
/ and pointed to three entries.
! THAT shows the last sums of money
that l loaned to Wilson and CARRIER"
she said.
Every Loan Repaid.
| According to the entries, Mrs.
Frankel had loaned $4,000 to CARRIER in
Dec" $4,000 to CARRIER in "Jan.,' and
$4,000 to Wilson in Jan" And Mrs
Frankel explained that she had loaned
the money in December, 1908, and jan
uary, 1909.
These were the last three loans"
| said Mrs. Frankel. They amounted
to s13 900 and were secured by Amer
/ ictn Home Circle notes signed by Will
| son and CARRIER. The whole $4,000
was repaid to me at one time about
May, 1909, and I surrendered the
notes.
Mrs. Frankel said that previous to
these three loans she had loaned Will
son and CARRIER numerous other sums
of money in amounts ranging from
/ $500 to $4,000. She stated that she
had no record of the earlier loans.
The anxiety of States Attorney Ma
| gill of Rock Island TO learn the de
tails of the Frankel loans was based
on his theory that Wilson and CARRIER.
while they were president and secre-
tary of the American Home Circle, had
found 1t necessary to borrow large
sums of money in order to keep the
society from going to the wall. and
that later, after they had absorbed the
F'raternal Tribunes and become the
president and secretary of that order
they had used the FraternaI Tribunes
reserve fund to satisfy the debts in
CURED in paying claims against the
American Home Circle.
Says 1t Was News to Him.
Mr.. Frankel stated that he never had
loaned any money to Wilson or Gar.
Der, that they never had repaid any
money to him. He said that when
he told the Rock Island grand jury
that he did not know whether his wife
had loaned money to Wilson and Gar
Der, he told the truth, for at that time
his wife had not informed him of the
facts of her transactions with Wilson
and CARRIER.
Just before leaving Chicago for his
home, States Attorney Lawrence M
Magill of Rock Island county last
night announced that prominent Chi
cagoan, whose name has been closely
| associated with the alleged fraternal
insurance scandals, had fed to Europe
to avoid prosecution. The Rock Island
prosecutor refused to make public the
fugitive's name, but declared that be-
yond doubt an indictment will be re-
turned against him today or tomorrow.
For Rigid Examination.
Il firmly believe that before we are
through with this investigation there
will be legislation enacted which will
effectively put out of business all
| wildcat insurance companied," Mr.
Magill said. Further than that, pre-.
dict that before the scandal subsidies
every one of the SO fratenal insur-
! ance societies in the state will have