The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-05-09
MODERN WORKMEN OF THE
WORLD ARE IN TROUBLE
Heads of Negro Organization Are Charged With
disappointing Large Sums Of
Money!
Money.

Following close upon a charge Of
fraud made by state Commissioner Of
Insurance, Colonel Joseph Button. a
grand jury OF the District of Columbia
yesterday returned nm Indictment
against Samuel j. Masters and John Il.
kinnear. two Nirginians. for the en-
bez1lement of $4,000 OF trust funds
belonging to fratcrnai insuranc, COM
pany called the Modern Workmen of
the World. of which they were ON
GERS. Fifteen counts are contained in
the Indictment, the charge being made
that the defendants appropriated to
their own use sums of money ranging
from 1900 to $500. Bench warrants
were issued for both men, and they
were balled for $4,000 each.
The Modern Workmen Of the World
Is a fratrenal organization, which was
incorporated under the laws of Vir-
ginta about five years ago. but after
having been driven out of the State
through the activities of Colonel But
ton. took up headquarters in WASH
ington and spread its net through the
South. Although ofiicered by these two
white men. there are several thousand
policy holders, most OF whom are col
ored laborers, who invested various
sums in the organization.
Iind Law Changed.
into office an investigation of the Mod
ern Workmen of the World was or
dcred and resulted in charges OF
fraudulent behavior levied by Charles
/ G. Taylor. then insurance actuary of
the department. Under the old law.
| such charges must be presented to the
Attorney General. and the officers were
called upon to face Attorney General
| Anderson. After listening to the owl
H. 7
officers. Masters and kinnear, the At
torney- General decided that the allie .
| cations were not substantiated.
! Fooled in this investigation. Colonel
| Button again looked into the affairs OF
the organization when Carlton Nc
| Carthy became insurance actuary, and
more serious charges of fraud were
brought forward. In the meantime the
| Commissioner of Insurance had sue
ceeded in the face OF strenuous oppo-
sit!on from such companies. in having
the State law In regard to insurance
| Investigations amended by the Lcgis-
iature of 1908 so as to do away with
| the provision calling for a submission
| of the accusations to the Attorney
General
In 1910 and 1911 Colonel Button sue
| cessfully fought the application for
license made by the Modern Workmcn
OF the World. and the operations of
| thu company in Virginia were practi-
cally brought to a standstill. In jan
! uary OF last year. when the Insurance
Department of Virginia was lighting
a renewal of the license to do business
/ in this State. the Workmen company
was consolidated with the Royal Life
| Insurance Company OF the District OF
Columbia, and assets OF the Virginia
Company to the extent of s42, 600 were
made over to the Royal.
This brought on legal nght, In
which Colonel Button claimed that TIL,
consolidation of the two companies
was in violation of a Virginia law
which prohibits the consolidation of a
fraternal order with an insurance com
pany having a capital stock. Colonei
Button made trip to WASHINGTON at
the time OF this controversy to appear
In court against the proposed CONSOLE
dalton.
Numerous Suits.
The Modern Workmen of the World
has been the subject of numerous suits
in Virginia and the District OF Column
bia. and has been Investigated time
and again. Several cases are pending
concerning thu disposition OF the assets
of the fratcrnal order upon its consol-
idation with the Royal. The indict-
ment of the two men yesterday was "a
direct result OF the refusal Of Super
intendent Ingham. Insurance Commits
sioner of the District. to grant license
to the Royal Insurance Company. In
attempting to force the commissioner
to grant the license. the affairs Of the
company wcra brought into court and
the attention OF the District attorney
was attracted. On the report OF an
assistant District attorney. the whoi.
matter including the books of the
Modern Workmen of the World, was