The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1911-01-05
tive Council, it becomes expedient OF

necessary.
You viii see from this Bylaw that
the Board of Directors and Executive
Council have no discretion in the mat
ter, but any moneys belonging to the
Benefit fund not needed to pay Scur-
rent liabilities against the Society from
month to month"; must be invested in
tho character of bonds described in the
| Bylaw.
The fourth charge is that the Board
of Directors approved forged bond of
bank whose failure has caused the So
ciety loss of $200,000.> The bank re-
Iferred to is evidently the First National
Bank Of Charlton, Iowa. Mr.. Frank f.
Croker was the Cashier of this bank,
and in 1899 was elected by the Modern
IWoodmen of America as its Head Bank
err. From that time until the failure of
/ the bank, this bank was one of the de-
positories of the funds of the Society.
Mr.. Crocker's reputation was such that
this Society, while he was Head Banker,
entrusted all of its funds to his care,
and he was supposed to be one Of the
honest, substantial and reliable bust
ness men and bankers of the State of
Iowa. When Head Banker McNider de-
signated this bank as a depository, it
furnished bond with personal sureties,
as was then lawful, to cover the deposit,
but for legal reasons, the Legal Depart.
ment recommended that the bond be re-
turned, and that the bank be requested
to file a bond in which the objections
made by the Legal Department were
met and avoided The bank afterward
filed bond containing the same names
as those on the bond first presented, and
this bond was approved by the Board
of Directors.
About the first day of November,
1907, Cashier Croker took his own life,
and it then developed that the bank
was insolvent and a Receiver was ap-
pointed, who took charge of it's affairs.
Among the papers left by Mr.. Croker,
AND which went into the possession of
the Receiver, was package containing
the original bond that had been filed
and returned, and statement saying
that he (Crocker) had misled the Mod
| on 80 A l-a IL Y
| in place of that bond one to which he
/ had forged the names Of the sureties.
An investigation proved that this was
true. 1t also developed that Mr.. Crock
err for years had Systematically sue
ceeded In using the funds Of his bank
in such way that his work could not
be discovered by the U. S. Government
bank examiners, and they were all led
to believe that the bank was solvent,
when in fact it was insolvent. 1t also
developed that this bank was a Govern
ment depository, in which the funds of
the United States Government were de-
posted, and that he had succeeded in
having the Government accept and ap-
prove forged bond. The same is true
as to funds Of the County deposited in
that bank. A bond was there presented
and approved by the County Officials,
but an examination into its execution
after the failure of the bank, proved
that it, also was forgery.
A claim was filed by the Society, al
lowed by the Receiver, and the Society
has received from the bank about $146,-
600, and we have every reason to be-
lieve that another dividend will be paid
before a great while. In addition to
this, the Society holds a bond of Hea d
Banker McNider in the sum of $500
600, given it to secure deposits not only
In this bank, but in all other banks in
which our funds were deposited during
his official term.
The fifth charge is that the Society
is now standing another loss of $50 900
for which former official is actually
responsible. This refers, no doubt. to
the bank of e. H. McCutcheon & Com
pany, of Holstein, Iowa. This bank was
a depository of the funds of the Society
and failed upon the death of its presi.
dent, d. FL. McCutcheon. In this case
the Society held bond which was be-
yond question genuine, and suit has
been brought by ex-Head Banker Bort
to recover upon this bond. This suit is
now pending in the Federal court. and
it would not be wise to state the posi-.
ton of the Society, or predict the result
until the court has decided the case }:
but do Sumbit that there is no truth in
the statement that we have lost anv
money up to this time by the failure of
this bank. We can only know when The
courts finally decide.
The next charge is that Director of
the Society is member of the Michigan
State Legislature, and that he CHARGED
the Society for the days he worked for
the State. This must refer to Director
G. j. Byrns, of Michigan. Mr.. Byrns
has been member of the Michigan
legislature since 1907 This change was
made some years ago against Director
Byrns, and he so completely exonerated
himself from any blame that he was re-
elected by unanimous vote of the 1908
Head Camp, and he has recently been
appointed by President Taft as CoIlec