Indianapolis News, Indianapolis, Marion County, 12 August 1892 — Page 2
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V.
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mm
ml
raB IBDI AN APOLI8
FBI DAY. A1
WmSt. ■
SOMERBV
■****- ■
mm It AM In Coast.
Sayre me tlttlaf Holtfia* Office Bef0u4 the Term mi Eleetiaa— Daria ao4 Walker Caa4itiaa« ailr “BemoreS” Bf the fapreme Bo4f->Where . it That $80,000?
XpJadff Haw* oeevpied » fall hoar roeter- «»/ aftorsooa la aaeworioe tbo gtMemmmU matfa bf Mr. B*wkio« for tbo plaiatiff ia tbolroa Ball roooiroroblpcaoo. Part of bio •tateaoel «ao priatod la tbooo oolamao jooforday. Ho atfmlttod, la addltton. that at ttmoa monoy hod boos taboo from tbo raoorve food aad yatlato tbofoaorot food, bat it bad •Iwaya boon eooridored a loan aad wao paid book. Tbo rooonro load got ovary dollar It wao ontitlod to. aad for two rear* proriooo to tbo Miac of tbio raft tbo food wao completb. Tbo dmrgt that Mr. Soatorby bad booa laotroBentai la koeptnr tbo oxocotiro connittoo tboal neetinx, Judgo Bowo proaoaacod folio. Ho oaid that tboro would bo do ovi donco to obow that Sou orb; h^i io any way ebatgod tbo book* or mado altoratioo* io Oom to Ooror op bia miodoiaao, aa bad booa dbaryod agaiaot him Ho bad booa trare..ag fbamootdf hlatiair. and tbo book, ana paOor» woro boro io lodiaoapoli* ia charge of laproaio Caobicr Dario and ftuprome Ao> coobtaot WaUor. god Hr. bom or by bod •otbiBf to do with tboai &od bo opuortuiiity to mako aay ebangoo. _ “Bat tboro orooraror cbargoo agoinot Mr aTSswti x.ittr&x. ^es •bargo bin with boiag a thlof—voo. with
ymmr oaxmoa ■OMaair with bbino a thib».
boiag a tbiof. They aay bo ombotsled tbe Hmw| " "-io. your Honor.
acca*atioo by jn nmid in and Therefore, they
10 It on Oomortoy. I don’t know t evidence will ho introduced on that point, but tbo ovidenco will khow that tvery cant due the order from that
to urea hat been paid over to it. There may bo
a fewahtall onaiwieno, bat thay ara to alight
a« to bo unworthy ot notice. Something baa
booa Mid about lobbying and money eroded for that purpooe. Mr. Hawkins found i fault with lobbying. Ho did not complain > It to wrong. Oh. no; that wao not the him. It did not ebook tbo moral teni ot the count#! lor tbo plaintiP* aa Ma to that bo ha* been paid certain ■uma for that purpooe, aad hava, they pal or logitiailvo body in my lifo, and 1 aovtf axpect to. I am oorry to any that it ia dona No man can be elected to an office witbont paying a certain turn. Even tbe
’dadn moot pay aa aaoeoament, and wo all i know that tbo moot of it goes down into tbe
peobotof name ward-worker or politician. 1 ant oorry that no logialation. no matter bow meritorious, can bo had unless certain poiltieinao are aeon. Yon can not get an honest hill through tba Loglolatnrs unless some Ot tbs gsattomon of the third house' are
y seen. So I ear it to an avll that . not bo tolerated. I am not trving tojuetlfy it. It to not jaetlflable at all. In “ oaaa there wao aa organised effort on the of tbe old Una tneurance companies to i the Iron Hall and organizations of its
tojuetif tbto earn Sjt,'
klad, and a bill was Introduced in tbe Leoislators of Hassacbusotts. Maine aad other EastOra States. There ware nine thousand members of ths ordtr in Massachusetts and Ibslr property was iu danger. Itwasalawiul orgaatsation and was tightiug for Its life. It Was aeoeesary to bring influence ou the I.egtsiatnra to rssist tbe proposed law. Kx-Uov-feraor Robinson, of MaMaobaaetto. was hind to mak i. s pseoh against it. Lawyers in that oonair/ ar> high priced as they are in this, and Mr. Robtason wa* paid |l*0(» for hie earvlea*. Hr. Bnt'er Was employed, and ha waa- paid fi.OOO. They made good argu meats, and It was thought advisable to print them ia tbe newapapers. TbatooaU money, too. 1 understand that mbou some ou a loug soescu is printed in the MfMtt ho ha* to pay lor if. I am told that the newspapers charged one dollar a line .or printing tho arguments. Then pamuhlets were issued and circulars sent out. and in manv wavs lha country was advised of tbe condition, onr$o<s* and plans of tba Iron Hall.
Oft. aAMHUHXt OMK OP THB PLAIKTIFP*.
hold. nails ' were
... ....... of music engaged, tbto, yon may know, costa money. If as a dollar aptat illegally, we do not L No one was bribed. No one’s vote (hi. Some of the men working in the of tbe order may have furnished some or bought cigars, or something of d. But . Somerby did not Ho never spent a dollar maa’e vote. I want to speak at that Philadelphia bank. It has ■a. . .. - ^ all tbo stock
and that is all
sd -»oinerby*s bank.’ that hank is s Ho to vice-preside ut
oe-presideut and one of the said before, bis duties as necessitate bis traveling anally, and be Is saldom there. I he has ever received
i paid for attend-
did not puts tho bank. iF was alt put ia by supreme cashier. Thu order has i about two thousand members and a tnousaad la Philadelphia alone. that it have a larare amount
“ " to moot claims. The good idea to have some i with the order—a bank
t tbe order—a bank could trust and in oafidenoe. There la that. It to lor corporations to
ad Urns tbe North-
> laaaraaoa Company has a bank a. Wall, those gentlemen found
* was a perpetaal charter, stoaa ia it that could not i Legislature of Penney 1-
to a director,
liathissait.
. . lytice
It was not no-
Tho money was put
to
' its bookal f>®e tbe stock oaf
i Into a f frequently coant lags aa zeq sgs St. port* to tbe
pr.ated re-
I via.
t bean -paid ap. He U great de*r of collateral, m • Dank official* think than be *1
tof tbeoraer; tlM Mr. Somthe entire ba*ines* te suit
oat inform a- ! and waited
j?s»nr».Vd
la the
the evidence, m, Hr. Somer' value of tbe
more
should have
Why, your Honor, be threw oat ■ }’s note when that man bad oa deposit ia
•?agaa»sz;
the bdhk s sum far in excess of tbe aesooat named ia tbe note. After sose* time there a proceeding la court. The Court ordered
S be pasi ia at oaoe. ■ Tne ia that bank foooooa There siAOMMkw of A rtemver. Tbero
tion for the erby was running I
i biawstf;tbetratoe—_
ply dead letters; that the member* were mot
I notified of ehaagae m the conattoqtiea; that
tba executive committee has mot performed , them. If yoa will else me time
1 its duties proofrly; that the supreme ac- t them Up.” • eooataat bed not obeyed the lews of the “Have jtm
“Ever since tbe order began.”
“And were yon a lay member ter tome time, or did yon tare a position as soon as yon
—-mf*
I Will look
MB. babb is nrnmaoaATBi sohbbbt.
was aa emergency. Something mast be done t# save the foods of the order, and it was de-
termined by the officers _ niton to pat in this money.
wteepreca net base
that it would be a
It msy
lawful for tbe agent* to pat
that money in tbe beak, bat if they afterward notified tba principal, then it wee legal. Then Supreme Cashier Devte pet tik tbe amount of money required. The officials supposed that everyth is a: was all right, and tbe bank would thus go ahead aad do business or tbe benefit of tbe order. There to mere money there in that bank then there should be; fTM.OW is for too much. It would not be proper to withdraw that money all at oaoe aad wreck tbe bank, but it ebould bo withdrawn gradually. cHsacas cohspibact—the bccxet Shops. “We propose to show, your Honor, that this suit to the resalt of a conspiracy, that it is a collusive suit. We may not be able to name all those who are in tbe conspiracy, but we cao name some of them. One of them to Dan Knefler, one of the plaintiff* in thi* suit. He was in tbe employ or Supreme Cashier Davis. It was common report that he was a bucketshop speculator and spent a great deal of his timo In a bucket-shop kept by s man named Lee. Once it was reported that he bad won a large sum of money—perhaps 185.000—and then followed tbe report that he was a heavy loser. These stories were not favorable to tbe order, and Mr. Somerby did not like it. Knefler became abusive and protfcno, and tbo result we* that when be tendered bta resignation it was promptly accepted. This displeased both Knefler and Mr. Davis.” These statements created a sensation in the eourt-room, and Knefler looked uncomiortable. After ex-Judge Howe bad explained at some length the system of insurance nsed by
the Iron Hall, tbe plaintiff placed
tump JfSTICE SOMERBY OH THE STAND. If be was aeli-possessecl and cool when he drat took the chair, be was decidedly vexed end “fidgety” when be left it. He tried to keep his temper, but once or twice he turned pale with suppressed anger when Mr. Harris preseed him closely. He sat with a copy of the constitution and by-lawa of the order in bia band to which he frequently referred before he answered questions. He had, too. a rather treacherous memory, but Mr. Harris re reshed his recollection in e manner that caused him to give out about all the information that was desired. He testified that he formerly lived in Indianapolis, and moved from Indianapolis to Detroit, and from there to Philadelphia. He aald that he had becu supreme justice lor five years, succeeding A. Q. Lewis. Emi Kenned ay was tbe first supreme justice from 1S81 to 1883. Mr. Romerby has been connected with the order since. 1883. The supreme justice has general supervision or the order. Tnere has been no regular meeting of the Supreme flitting since the Omaha meeting in i889. Witness was at tbe Omaha meeting. Tbe meeting at flan Francisco was never held. Witness conld not tell how many amendments have been made to the constitution end could not men-
tion them specifically.
Some, he said, have been made since I have been supreme justice, but 1 could mention them uniy irom tbe constitution itself. When
you kpow K. E. McMeacham ?" yea; be is e director, too.”
I took a poeitieo at once;”
“What wfie it?”
“Supreme vice justice ander Mr. Kaaoady.” j Mr. Somerby testified that Supreme Cashier Davis bad made so report to a regular or spemai session ot the flupreme Sitting since the Omaha meeting, except a partial owe la tbe special meeting ia February, 1W1. He made none to any committee, aad Somerby bad appointed no committee to rsqoire a report of him. He never investigated the books, aad
knew nothing shout them.
“Do yoa know where the money to kept*”
“Yen, air.”
“Where, please*”,
“About fWO.OOO of (t is kept here, aad about
groo.CC© ia the Imak at Pbtladelphte.” “Yoa are we officer of that bunk ?”
“Yea, sir, vice-president.” “Do yoa bold aay other offieet**
“No, Hr."
"Are you not a director?”
"Well, yea, but I thought that necessarily
Included.''
“How many directors are there?" “Nine, I think.” “Can yoa name them ?” "I caa name some of them. X. C. Davis, F. D. flora erby-” “That’s you?"
“Yes, sir.”
“Thanks. Proceed." “Dr. Pancost J. 8. Dubois, H. G William a. P. L. Newman aad others whose names I have
forgotten.”
••Do y< “Ob. yi
“He to your eon-la-law, to as not?"
“Yea, eir.”
“Ah, yea Singular you bad such difficulty in remembering his name. Did Mr. Davis ever attend a meeting of tba directors of the
bank?”
“Yea. air; ia April, 188*.” “Ia Dr. Pancoat a member of tbe Iron
Hall?”
• “Yes, sir.” , - “Where does he live?” “Some where in Jersey." “Oh, he ia a Jersey man! Do you kaow his address?” a “I don’t know tba town, hat I kaow kie Philadelphia address.” “And where ia that?” “Eighty-one Arch street.” “Oh, yet. at your bank—or I say the bank building in order not to be offensise. How
old is be?”
“He might be fifty-seven or fiftyTeight-” “And who is J. 8. Dubois?” “He is editor of tbe ’Problem Solved,’ the official paper of the Order of the Iron Hall He is also supreme prelate.” “Where is tbe neper printed?’*
“In Philadelphia.”
“How long has it baen printed in Philadel-
phia?”
“My impression is about six yean. Itcame there irom flt. Louie and was printed in In-
dianapolis tor about two years.”
“Is this paper printed by the order?” “Yoe, air.” ‘ '
“I* it lor free distribution?”
“No. sir. It is 30 cents a copy per year, issued monthly. The average edition is 5,000 copies, depending, of course, oa the information that is to be tent out to the members ” “Is H. G. Williams a member of tbe order?”
“Yet. eir.”
“Has he ever been a member of the Supreme
flitting?”
“No, sir.” ~
“What other position does he hold?” “He is secretary and treasurer of the Iron
Hell Building Company.”
“Who is tbe president of that company?”
“Justat present there to none.” “You were lormerly president?”
“I havo been nominally president for a
year.”
-What position does Mr. William a hold ia
the bank?”
“He to bond clerk.” ,
“Bond clerk?”
“Yet, sir. He baa charge of the indemnity bonds. He has held the position for e year
and a halt.”
“Do you know how many bonds have been issued—guarantee bonds we call them out here—as surety for officials of the Iron Hall?”
“I do not.”
“Who has the charge of these bonds?”
“I have.”
“Ah, that’e the reason I should think you would know how many have been tuned. Where are these bonds?” “Here in the vault at the office. I could not give the exaot number without counting
them.”
“Who approves these bonds?” * “The adjuster of the local branches.” “You never make any inquiry about them ?” “Now, F. L. Newman, where does he live?” “Springfield, Maas.” “What official position does he hold?” “None now. lie was chief justice of hto local branch for one term.”
tooaeof the constitutional bonde for ffiLOOe.
supreme j ^That*
TO.
i tnde finitely?"
some other.’
•at that!
to call
to go in.
majr be m
-Mm * said before. Umbo to nothing specific.*' i sioeran a usoiw “Can"there be an election ia the districts ! fiMte^la 'the^ouf J till the executive committee orders a call?” j amounted to $108,1 “No, sir.” ) tea same amount as 1 did
^
charge of f bank that
the
tossed by,
MB. MAWKINS LISTENS TO MR. SMITH.
tht constitution was first formed there was no provision for the qnadrennial meetings. Thai ««es made at a special meeting. There was a v.riticu request iqr the special meeting held in Indianapolis in February, 1891. I wrote the cal. myseli. 1 think the request is among my iai>ers at the office. 1 will endeavor tu have it here in the morning. I ti ink nearly all the members were ) ere at that special session of tbe aupreuu flitting. Ail who were here were entitled to seats m the Omaha meeting in 1889. 1 think ws were in sssaiou three daya I presume there was a record kepi of tbe meeting. I did not sign it because it has never been written up aud presented to me. I never saw it. 1 never demauded it uutd the nresent week, and when I asked tbe supreme accountant, E. J. Walker, tor it. he said he had instructions not to write it up. No one but me had authority to give such insuuction. He said I gave him that instruction, but I did not do so. The records were made ou stipe day by day during the meeting. My impression is that part of the record to in what ae oalls a scrap-book. There to not. so tar as 1 kaow, aoyj^rmanent record of that meeting. Rowland Evans was the stenographer at the masting. 1 asked Mr. Evans to-day lor his shert-baud notes, and he said he would look them up and see what he had. I will endeavor to have him bring that book here to-morrow morning. Only printed abstracts of tbe meeting were made/’ Mr. Harris asked him It he could remember any particular business that was transacted, aad be could aot. “It was at that meeting that your salary was increased, was it not?” “Yet, that*s a fact. 1 believe it was.” "Ob, then yoa do remember something about some business transacted.” Mr.bomerby also remembered that it was at this meeting that the meeting ot the Supreme flitting was changed to two or lour years. The ordnr had not been notified of that action. It was at the meeting in February. 1881, that it was decided not to have the regular sitting ia May, and the order was not notified of that either. The cell for the present sitting was promulgated Friday or Saturday of last wees. Tbe call was signed by Mr. Somerby, and the request signed by fifteen members in good standing in the order. They were not written at tbe same time. He said tbe request
.‘What business is he engaged la?” “He to an architect.” “How many members did hto local branch have?” ■ “About seventy, I think.” “Did be ever attend any of the meetings of the directors?” “He attended the meetings in 1891. but was not present in January, 1893. Duboiae and Williams were there.” son-in-law m’meacham’s position. ' “When did E. E. McMeacbam bosoms a director of that bank?” “In January. 1890.” “Where dt J he live before he came to Phila-
delphia?’'
“In Kansas City.” <
“What did he do there?’ 1
“He was in the real estate buainese.” ' "What position docs he hold in tne order?” “He wot elected supreme adjuater at the
Omaha meeting.” ■'
“Does be atilThold that position?”
“1 don’t know whether he does or not. I can not answer that queation without making an
explanation.”
“Make all the explanations you deeire, Mr. Somerby.” - *1 “Well, there were some matters to come up, and Mr. McMeacbam tendered bis resignation. Md J. W. Sayre was appointed to the
“By whom?” -
“By myself, but the appointment has not been approved by tbe executive committee.” During this explaaetion Mr. Sayre, who eat near Mr. Newberger, appeared highly amused, end expressed hito edification by pounding himself on tbe chest aud winking tbe other eye at the other members of the order. ‘To whom did Mr. McMeacbam tender hie*
resignation?”
“To me”
“Wo* it accepted?”
“I did not consent por dissent. The appointment was made conditionally, and Mr McMeacbam entered hto proteal agamst Mr. Sayre serving, and that’s tbe condition of
things now.”
“Has Mr. McMeaoham been performing the
dntiee of the office?”
“He is like all tbe other officers. He has
been attending to the business.”
“Ia he engaged in any other kind of busi-
ness?”
“Yee, air.” “What to it?" “Real estate.” “As agent?” “As agent.” “Where?” “In Philadelphia." “Is he here?” “No, eir.” “I believe, your Honor^this to alljl care to ask this evening. It’s late, anyhow.” It was 5 o’clock when Mr. Somerby left the witness stand and be looked aa if he were not sorry for it. Court adjourned until 9 o’clock this morning. . bOMEKtSY AGAIN TO-DAY.
r>
aoatnaT leaving too ooubt boom.
Be wee absent Saturday. He loaned the csi: for the special meeting of February. 1881. but mUf not remember who wrote tbe request or Who signed it. He saw tbe request at tbe time It was presented. Xr. Harris asked many questions, asekinp
Be Goes On the Witness Hi ana This Morning—The Day's Develop meats. The attorneys for the plaintiffs served notice on tbe defendants to bring into court tbto morning the request and call lor the special sitting in February, 1891, and the same for tbe sitting now being held in this city; the records of tba meeting of 1891, the slipb on which tbe minutes were kept. Chief Clerk Evans’s note-book and the short-hand record of the meeting, all reports made by tbe supreme cashier aad supreme accountant made to tbe members since the Omaha meeting, report of the Omaha meeting, all circulars, reports, ate., sent oat by Somerby or aay other officer since tbe Omaha meeting, number and face liability of all goaraatee bonds, etc , in possession of the defendant in this city, end tbe names of the gwaraatee companies. This list we* given to Cbtef Clerk Kvane this morning, and be started from tbe office of the attorneys for the defense in haste fitter them, f hough court had adjourned until 9 o’clock this moraine, when tbe clock struck that hour there was ae one present bet the reporter*. The daar was not opened until 9:15. Chief Justice Somerby came in with exJudge Howe. He wa. unusually bland, aad :e seemed ia better spirit* than ordinarily. He even shook bands with some of the reporters aad was gentility itself. “Wen. gentlemen, oxey ou ready to proceed ? if so, go on, said Judge Taylor, as ha took “Where is floraerby?” asked Mr. Newhereer, in alow voice, to ex-Judge Howe. “1 sent him bock to tho office after eoma:hing.” erne tbe reply. "I spoke to Mr. Harris about it and be said be would wait.” “Yea that’s all rieht,” responded Mr. Baria “I don’t care to pat On any other witaeee this morning.” ‘ Verr well,” said the Court, and be walked into hto private offlaa During Somerby’e ab•ence the lawyers ou bath sides ware engaged im On* Mjn* Xhfc*
tl llffif ffiM ** ■ " r r '"-
“And be has the bonde that permit mete any, ‘hto bank?’ ’
^*2 thesupreme cashier a boud?”
“For what aaaoant?”
“Fifty thousand doilara” "When was that bead made?"
"I do not kaow.” ’}Pa* it expired?" ’U do not know. ”
"Any of theboedtmen dead?" “Yea air ; Mm. Tullericb-”
sw* w
a Philadelphia trust company. ”
“Don’t yon kaow that thw bond was to take
the^p'.oce of tho other?”
“Are both in fane?” '
“Yea Mr.”
“Where to that bead?” “Mr. Hays may nave it.”
“Where?” •
“In Philadelphia. I think.”
“Yea, ft may be in Canada, bat where to it?*’
“I float know.”
“Have these supreme trust see made any re-
port since the Omaha meeting?”
“I think not, but they may hava done to at
the special sitting.”
“How much of a bond to now ia fores
against the cashier?”
“I think the Oaten and Tullerich bond if ia
force.”
“Where does Mr. Oaten livo?” “In Nashville. I think.” “Do yon kaow him?” “Yee, sir.” “Is be a member of tbe Supreme Sitting?” “Yee. eir.” “Is he here?” ‘•Yee, air.” “Do yon remember who |etoe eras oa Mr. Davis’s bond?" “I think a personal friend of hto who to in the jewelry business here.” Mr. Somerby was banded a printed record of tbe report ot' tbe Omaha meeting and asked to fled in it tbe report of the trustees in reference to the condition of the officers’ bonds, Mr. Barrie remarking that he had examined it aad found no reference to it. “I am not able to find it by tbe index.” “Are you able to say there was any report*” “I think there was.” ( ’This to a stenographic report signed by
you?”
“Yee, eir."
“Was Mr. Evans tbe stenographerf” “Yes, sir; assisted by Mr. walker.”
Mr. Harris called attention to the duties of tbe supreme trustees regarding the investment ot the funds of the corporation, then
asked:
UNPEBTAKEB ON BOXERBY’B NEW BONO. “What to the amount of your bond?” “Five thousand dollars.” „ , . .
“Ry whom given?”
"It’s a personal bond."
“By your hand?”
“No, air.” l “When was it given?” “About ten days ago.” “Since tbto suit was begun?” “I think so. It was executed fa Detroit about ten days ago. Henry 8. Roberts, an undertaker, and william Leach, a decorator,
are on tbe bond.”
“Had yon a bond before?” A “No. I had been doing bnsineas for two years without n bond. I bad arranged mr tbe meeting ot the executive and finanoa committees and trustees, and had tbe bond prepared. There was no special matter that needed attention except the general welfare ot the order. There was no meeting of the supreme trustees since the Omaha meeting, nor none is called. The bond has not been approved by
the trustees.”
“Then yon are not under bond, really?”
“Only that wag.” . .
“I beg to inquire, Mr. Somerby, what ftmda have been placed io the hands of tbe supreme trustees for investment's required by the
constitution?”
“Directly, not any.”
ARE THB FUNDS INVESTED? “Indirectly, bow much?”
By an implied agreement the funds of tho supreme cashier were to be placed in the hands of tbe trustees. Mr. Somerby testified that when there was a meeting here, a little over a year ago, between Somerby and
Has the executive committee issued a call ! held the
| sum tfcMJmaha meeting?” not to fib paid
“Didn’t these representatives elected for ! ***’^Ube Coart how yon understood that Omaia meet in this city aad change tbe time oae-third of the Block was te Organize aad
~ * couldn’t they put it off ‘ control thf bank; what arrangement was
■ HHa
of meeting, and couldn’t they put it twenty yean? Is that your construction?”
“It might be."
“tea** n?”
* Tne supreme court to the hiehest court ia
the order.
“Ye*; If that supreme court said there would Im ao meeting there would be none?” “Not If the laws were regularly amended.” “Where do you fina any authority for any representative to net more than two years—to control tbe corporation aad its affairs?” ,. Mr. C. W. Smith—Thxauoeation to a view oa the part of the attorney. Tbe witaaes has explained the law and the witness has pointed oat all the authority that the books give. Mr. health, an hebalf of the witness, objected te the wording of tbe question, aad insisted that it Was a matter tor the Court to decide when the argument to mode. Mr. Harris replied at some length. Tbto to the first real controversy the counsel bass had since the trial beaan. The Coart decided the questtea eat of order aad ruled that the investigation of the witness had gone for enough te the direction indicated. Mr. Hams resuming)—What was the date of the election, te the districts, of rape tives to attend tbe meeting te Omaha? “The data I am not able to give." “Were all the elections held oa the same
day?”
‘•Tbey were not.”
"How long beiort the Omaha meeting were
he rspreeeatativea elected?”
“I think about one month, ia March and April ia 1888, while tbe meeting was te May?”
‘•They were not held on one day?”
“No. eir.”
“You attended them meetings?” c r > “Some of them. The call will givw it to
you.”
“The call will tell what meetings you at-
tended?”
"I think it wID.” "Have ywo the call?”
“I think au”
Mr. Somerby examtaad a' number of papers, but did not find it, and so stated. He examined tbe printed record ot tbe Omaha mem-
asked
ing and
asked for the ream
meeting in 1891, but as
tor further time. He eras i nest and call for the snecial
_ but as it was not produced. Mr. Somerby said that it was among the papers - ot the supreme accountant. C. W. Smith agreed to produce tbe papers If they can be found. The printed report of the meeting of 1891 was produced, wherein occurred the sentences: “The growth of the order, numerically, naa been all that could be desired. The membership could have been increased to a much larger proportion had tbe best id tercets of the order demanded the same.” Mr. Somerby explained, ia answer tq Mr. Harris’s question as to what be meant by tbto, that they did not want tbe order to increase so spasmodically that the business would become hazardous am^the liabilities increased to too great au
A BRIEF INTEBRUPTION.
The court took a brief recess. Mr. W. H. H. Miller, Attorney-General of the United States, came into the court-room and greeted hi* many acquaintances. After the recess Mr. Harris decided not to pursue the line of inquiry last presented, but went Into some
financial matters.
an nrqciBT into assets. ' ! “What real estate does tbe Iron Hall own, and what to it* value?” “It owns the building on the Circle; it to valued at £38,000. The Supreme Sitting owns no other real estate.” “What securities in the way of bonds does the order own?” , « * “J can not answer that question. Tbe supreme cashier has some in his possession, I think. 1 do not know what the character of the bonde owned ia Them to one Jersey City bond ot email value. Its amount is about
8600.1 think.”
“What other property baa the corporation?”
“Not any, to my knowledge.”
“Have you any mortgages except the Baugh-
vllle mortgage?”
“Not teat I know of?”
“Has tbe order ever invested in any bonda
or mortgages?”
' “Not stece I have been supreme justice.” “Have you ever loaned the moneys at In-
terest?”
“No. sir.” ,
* “The moneg has not returned aay profit?" “How much money to under tbe control of tbe Supreme Sitting? State the amount and
where it is.”
“The attorneys have tbe financial report. The present amount of cash in the hands of the supreme cashier to, I think, something
like fl,300.0CO.”
The financial report referred to bv Mr. Som-
er done eo before,” he said, arby was handed him by bis attorney. C. W. ad confidence in Mr. Davie. Smith, and Irom that he read the report of .Otto in the bauds of the the supreme accountant, given elsewhere.
“Is this money in cash* or in some other
form?”
he made the suggestion that tbe reserved fund bad better be transferred to thesupreme
trustees for investment.
' “We have never done eo before,” he^said, “becaure they bad confidence in AT There was |94.o6t) in the bauds
cashier in 1891. The reserve fund had beea drawn on in the regular way. In 1890,.two-sevenths of tbe fund was drawn. Nothing was drawn in 1889. This tel,000 wa* turned over to no one. Mr. Dayis has been ready to tptn it cverfo the trustees when an order was drawn. He held it as a deposit continoualy. The trustees consider that, as the matter bad been talked over, it bad been turned over to them. The Supreme Sitting has not turned over any money to the supreme trus-
tees for investment.”
'•Did Mr. Hays get hold of the money?” ■ “Yea, sir. Mr. Davis sent it to hiaa. ,r
“Waaa warraotdrawn?’’
“At the meeting oi the Supreme Sitting a Warrant will be drawn to legally transfer tbe money.” ^ :
“Who sent it to Hays?”
“Mr. Davis.”
“What has been done with the money?” “He reports that he bae invested it te collaterals for the Order of Iron HalL” “What kind of collaterals?’’ * “I do not know. There was a report presented to the meeting of the Supreme Sitting.” :__“Was the investment made foy Mr. Haya without co-operation with;the other trustees?” “I do not know.” “Had yoa talked with Mr. Haye about the investment?” . - “I do not remember. I do not know what kind of securities are invested. I saw Mr. Havs last Sunday iu Philadelphia. I inquired of Mr. Hays as to tbs condition of the funds—” “But about the $94,000?” DOESN’T KNOW ABOUT THB INVESTMENT. “I went to Philadelphia in tbe tetereat of tbe order to ascertain tee amount of funds it bad there. The matter of tee special investment came* up. He and Mr. Davis understood that about $88,000 was to be invested, and that a warrant would be issued bv tee Supreme flitting to release tbe fund. I acknowledged that I bad said I would have a warrant issued for tbe release. He did not give the information as to the Maas of securities be had invested in, bat said he would make a report. 1 was with Mr. Hays and Mr. Younghusband about an boar, and then ! left them and went to Baltimore. I never saw the sureties. I do not know the character of the collateral securities. I have no (teformation of tbe kind they are.” » . “Are yon prepared to aay yon have no information in yonr mind of tee kind of aureties Mr. Hays baa invested tbto $88,000, or $94,000, for tbe benefit of the order?" “I don't know the character of the sure-
ties.’’
“Have you no information?”
;"I don’t think I bate any information that wonld warrant me In explaining. I will bring Mr. Bays’s report, and let that be tee guide.’’ “Aside from tbe $88,088 or $94,000, wnat other
investments have been made?”
“None, except what was made by Mr. Davis. That to a loan of $3,880 oa tbe ball in Haaghville. I approved of that, and was cognizant “Has there beea a aeesioa of tba Supreme
Sitting this week?”
“Yee, eir.”
“Has tbe report of Mr. Hays beea laid be-
fore tbto body?”
"It has not.”
“Who has that report?"
“Tne chairman of tbo trasteaa." ,•
“Who to teat?”
“Mr. Younghusband.” “Has Mr. Hays’s report boon before tbe Supreme Sitting?’’
“It baa."
“What was dona with It?" “No action baa taken Place yet.” “How many members of ths Suprems Sitting are satitied to a scat aad vote?’’ “I thtek tbe list calls lor forty.” How many district* in your order?” “Twelve tbe last time." “Ho* many bow?” “We have aat redietricted.” “Have there been any representatives eieetsd since tee Omaha eseetfag?”
“No, air."
“Then the representatives are tbe same ae
those at tbe Omaha meeting?” "Yee, sir. aster ae they go.”
“Hare you. siase the Oeaaha meeting, tesaad aay call to the local branches lor the election of representatives to the Supreme Bitting?”
; "Net. ate" v
“What was tba memberebip wbaa tba call waa issued to tbe Omaha meeslagf”
“About forty tbOuea ad.*'
“Hew many wonld be eatitied to representa-
tion if yon had mads a refit?”
“About 53.008 for tee Jfcmoat aeaeion ?” ‘■Then the sitting would be greater now, if
thmshedbeoaan election?”
WUKaSiS tebauteosutt?
"What pro vision to therein the law of the Supreme Sitting that authorize* aay representative the right to voce atteralapae of two yeozs from bta ejection?” . “The present bod v hold*He poweta until tho/
other body convene*.” “That to not tho qnestioilL*
Judge Taylor—no question
“1 presame it to in cash.” “Where is it?” “Deposited in banks." “How much?” “I don’t know. It is in the Meridian, tbe Capital and Fletcher’s Bank. I do not know bow ranch they have on deposit.” “About how much have you learned, ae •upreme justice, there are on deposit in tbe banka of this city?” DEPOSITS IN.BANKS. r+ “I think in Indianapolis there trould be $450.000—yes, $600,000, or $516,000 or $518,000.” “How do you figure that?” “By deducting $718,000that has been need in Philadelphia.” “How was that money used?” “It to on deposit; $170,000 to eliminated from the deposit in Philadelphia.” “Who do you include in tbe pronoun ’we* need in Philadelphia?” “The Order of the Iron Hall.” “When was the money used?” “In April.” W “How Was it used?” “It was urea to avert the wrecking of the Iron Hall through the bask.” “Was it averted?” fc
“It waa”'
A $178,000 DONATION.
^Tell me how tbe Iron Hall used tbe $170,“I think it was on a Saturday tbe bank examiner of that State closed the Mutual Bank and made an examibstlon. We had every reason to believe it an attempt to wreck the Iron Hall. After an investigation it was discovered that a large amount of the order’s funds were on deposit. If the bank went into the receiver’s hands, it would entail a heavy loss on the order. A , meeting was oaHed. M. C. Davis waa there from Indianapolis. It was cocci uded if the bank was Wrecked, it meant a receiver for the order. We had to do aoraethiter. Tbe aaeete were scanned, and we agreed te protect the cashier if tbe order would donate $170,000, which wonld tide over tbe bank and save the order. This waa to be donated to tee stockholders. This act was done voluntarily by M. C. Davis, who agreed to furnish the money onteideof the Iron Hall, if tbe Iron Hall would protect /him. I understand an agreement of teat kind was made by some of the members of tbe order in that city. The monev was contributed and when tbe cell came tbe money was presented and tbe bank proceeded to do it* business, F.D. Somerby, M. C. Davis. A. H. Hosyfier,E- W. Room, James H. Eckersl
Hays,
were there.” ••Was McMeacbam there?” “Yes, eir.” “Was Pancost, tbe president, there?" “Do you msan that there men assumed to take $1^0,000 of the funds of the order and present it te tbe stockholders?” “Not ia the nature ofa gift. I believed tbe loss would be trifling, and it was a necessary emergency to assist ia tbe opening of tbe “How much cash was ia tbe vault* of the
n1r*'>
iosraerE. W. Rouse, JamesH.’Eckeretey,' EL Baker, Joseph Glanning. J. Henry a, H. G. Williams and 8. J. Stockwell
bank?, —
“I do not kaow.”
“Did you investigate?"
“No, air.”
I wasn’t
mode iboat tee mi
trotting the bank and
from begin’ toed and 1
change ot name.™
jtzsiX'sz'X;' . there, and bad nothing to do with those arrangement* a* ad. After the bank #aa organized tee eqbteription list#hieh had been opened-the Deymenti bre«a to made, as subscriber/to the M?tual Ban” Surety and Trust Company, and it was cooperative ia its aatore, and tee capital stock waa to be aecnmalated; the call was made for a hundred thousand dollars, to be accumulated by payment. •. $I.Oo5r^£e£ meat each monte, until the sham were paid for. Tbe Working Capital of thebankeflftw aa r h .;n.rcf sx
don’t know.”
“About bow much?** '
M I could oot tali anythisa about it.”
“lArge or small amoantr*
“It waa a small amount. The next move was that Mr. Davie transferred hto account
from across the river to the new bank.” “How much waa that brought ia?”
“I don’t kaow just bow mneb—probably
thirty thousand or ,orty thousand dollars.'’
C. Wi Smith—Just to keep the matter ia order—was there new stock issued, and what
atoek was voted? '
“The new stock was issued and the new stock was voted only. NO other stock bae ever been recognised under tbe new name. Mutual Bank, Surety,Trust aad Deposit ComP»ny, and they took control and management, and soon after—we had been running: the bank some tew mdntbe-I don’t kaow just how long, Mr. Haya said that flaying up tbe capital was slow process, aadif waa necessary teat be have some securities whereby he might be uble to realise in cam of neoeeeity. He then called upon ue te give our notes- individual notes—of $3,000 apiece, I think it was, to be held by hiat, that in cam he should need any more money than he could receive by tee slow process of aceemulating stock in tee business that those notes could be uted as collateral, for that purpose, and when the time came that tbe capital itself waa sufficient guarantee, thorn ■ should be returned. It appeared all
ALUE*
ACCORDING
mm® rThey Inaiat 1 hat the
thfl Thlngra 1
,
m
ill •d
Chase wa *t Lodi, i
notes
right on
n6te
the surface to me,
n.d’-ir.
gave my
without hesitation, as did the others. It transpired probably six months or a year later that those motet were-not needed, anfi they were returned by Mr. Haye and canceled without any consideration, for nse in any form, shape or mannar. At that time the bank was growing and every one seemed to be taking an interest In it. It transpired about that time that some differences came ap between myseli and one of the hired officers of tee bank, since which time I have had no special interest in the bank, any moretben te recommend Hand support It.”
“Who was that man?"
“I do pot wish to give his name, if you will •*cuse me, because it is a personal matter
“What office does be bflld?”
“!t to a purely personal matter, and I would like to be excused. There to nothing in it that ia material—if there was I should cer-
tainly be glad to give it.”
“Mr. Hawkins did not understand whether be was an officer of tbe Iron Hall or aa officer of the bank, or both—which was it?”
-Or tbe bank.”
“The controversy was between you and
him?” *
“Yes. sir.” i “And you bad a controversy, aad you haven’t been about the bank since?’ “No. air; 1 did not say that. I said 1 have taken no special Interest in the workings of tbe bank for the lest eighteen months. Dor-'' ing the first six months after tee organization of the bank I solicited quite a number of members in tho order to take atook, and recommended tbe surety bonds, believing that I waa aiding the oraer in so doing, and $87,000 has beea paid in, I think, on stock —or $69,000. When tbe calamity come, that I spoke of, ia April—” “Well, let uajuat pause there—” The Court—Well, we will paose now until 3 o’clock this afterno ih. ’
Bom-
Pi
AOJttERHY JDJLLAYfl THB COD AT.
•-
Tiresome Wait For tee fiupremv Justice
This Afternoon, ,
Judge Taylor was on the bench at ten mtantes past 2 o’clock this afternoon, bat Mr.
Somerby had not appeared.
“Is the Witbess here?” tbe Court asked. “Mr. Somerby wee ill and delayed by other mattera, aad conld not get to hto dinner as early as he expected,” responded 0. W. Smith. “Well, have you those papers we asked for
yesterday?” lnqnire<rMr. Harris.
“No: we haven't anything just now.” “Judge Howe, do you know where Mr.
erby it?” asked tbe Court at 2:90.
“No. I do not. I went to the offloe, and
liftVfi not soon him.”
^ “Mr, Smith, do yofi kqOw where Mr. bomer-
^member* here says he was net ell and went to dinner a little
:e up Mr. Newberger.
Mr. Somerby £ame in at 2:58, harried, bat
smiling- ..
“Mr. Sotaerby.” said Judge Taylor, “yon
have kept aa waiting some time.”
“I oame just as soon as I could,” said the
supreme justice.
“Well, you will hava to get here more promptly.” •
“I had some papers to get and—"
/‘You knew tbto court adjourned till 2
o’clock, didn’t you?”
“Yes: but I did tbe beat 1 Conld.” “Get here on time h*reaft«.”
Mr. Harris than resumed tee investigation. _ Descriptive & The flupireme Juiuc*. Supreme Justice Somerby of the Iron Hall, whose name to appearing eo conspicuously now, is a man somewhat below the average stature. In complexion he ia a brunetteskin rather dark; eyes nearly black; chin, side whiskers and mustache black except where tinged with streaks of light brown; hair thin aad dark oa the back and gides of the head; crown bald; eyebrows, black, high and arched. In ■- i - • ■'
’One of then
feeling very wsl
late,” Spoke
r.‘,r^ s Evansville
aibftB first i
who E to the
rsTuSs*
1 uuffiptw, »oa hmmriM aIi&oi
said the board i
tee road at tee it understood l the property. 1 the company is ( on it at all. The i •hi# profit, Mr.
officers of the company He thought that $6,800'* i extreme limit of valuation tan stand. “U the j tamed all w« can do liaquent and allow
whatever hands it i
to equipped with th HP passenger oars and twenty-.our There are no depote or valuable 1 J’iMffi'dT.’ET' 1 calledjtbeChicago & Southeast too* tee floor Inbtealt of that .
said the road hae never had aay net earnings. except as to the main track, £2ised at! a mile, and its rolling stock, aaseaaed in at $81,80a These were too high. Dr. Moore urged, especially tbe asewaiuent on the rollrof/^ c .ioo“jmi avals Tbe tele of the road’s attempted extension into the coal fields ot Park and Clay counties was then related. Some gradiag has been done on the extension aad eleven and a-half
jMsiru
company bos sold all tee bonds potato la amounting to #876,880. This to tee total indebtedness of the oompaey.axoepl a email, floating debt, and the company can not iac being prevented by explicit contract with the present bondholders from any further incumbering of the property. Dr. Moore said the report that the company hae uever Mid any taxes to falsa: that it has paid some.
paid soma,
is tea counsel for the Obfoago A^aetou^^’note, the Chfoago A Indiana Coal Railway Company, and the Indiana Block Coal ‘road.
The] road
ville,'
The annual rests] paid < und\r'tbto toase la*the
^ a...* eta
and extends from the Brazil ooal field west to the main line. It to atrietiy a coal rood; a«
ever run over it. It
masw reusauzaa avutmx >reaiu uuuri tutffi IVIbffiV 1 interest on the bonds of the A, T. H. srJ:Yo‘‘fft , Sis.z , i.. , s,or*T!
passenger can are to also a leased road, for it to $15,500 a year,
TBs fatelhlMi
'pmpany was hex* fake
up. Tbe road was built by the tame men wt afterward built the Midland. Then some me boasht coal lands in Clay county, and bait charged too much for ahipping their c
0. lor a rental
eonstotlngof the interest oa the O. A I. C. This interest amounts to $828,880 a
bond*,
year. Tbj^
expenses,
dollar.
Mr. Lyfiord.
Interest amounts
others
. , i many
lag before tba board, waa Dazzled concerning tbe baeis on which
board acted in fixing vsluae of railroad property. The Cbioago & Indiana cool road was
H. A 0. road tbe two in track, equipment and •aid, and y«t tbe board had assessed than tbe 0. A I. 0. He wat inclined tbe board bad been inconsistent or at least greatly mistaken la some of Its conclusions. The division of the Baltimore A Ohio road
if® set
» 4.,
commissioner of Ohio, was a member of the Onio Legislature nine year* and was once Breaker of the Housioj Representattvee of Ohio. When be went oat of pablio office tbe
- . .„ .te
B. A O. company employed him aa special agent. He attends legislativs eesaioaa and looks after bills favored or opposed by the company, after tax a and all manner of liti-
gationWmmgH^m gtoijals|ji|
ion of the B. A O. labors. It runs through poor country, few towns, and no large ones, and little of such revenue as it earns rises from Indiana bn sin set, Tbo expenses of operating lack less than 12 per cest. of ooonuming all the earning*, and the road has
bell regarded as excessive.
A BICYCLIST KILLEDTheodore Hollo Falls Over m Thirty* Foot Embankment. f
SOM BRUT OU TXX STAND.
conversation parallel arc*
expanse of hto naan, though i by frequent en
lag of hie _
examination he
bat does not “«o to pieces.”
“No, air.” - • n “No, air." • ,• ” . -
“How much did the bank owe the order?”
“About fttOAM.”
HOW THAT BANK WAS OROAHIZBD. “When did the Iron Hall begin to deposit money la the Philadelphia bank?” “In 1890 when te* bank woe organized.’’ “Who organized that bank?” “1 gave yoa the list yesterday.” “You gave me the list of directors. Were there say others interested beside tee direct-
ors?”
“Yee, air. There were some onteide stock-
holders. I was one of tee organizers oi the i .
bank, but I was aot present, i do not kaow ;
who had control of tee bank before the *ndjwhjle
Iron Hall took it. All it bad was tee . “ J,®"
naked charter. . I don’t know how J it waa purchased. Mr. Hayes and Mr. DnbotocaJledmyattoatioa te the charter. We never hod a meeting for the purpose Of acquiring tec'charter. Wc met frequently, I never knew if any busineee had ever been dona under the charter or If the bank hod aay capite^ tko name wan changed about tea ties who had tee charter i or sale. He took an interest ia tee beak when it was or* gaaized. Tho charter happened to bo
fociCi fi iftsoed 7yi tSST
mm areal ram Kim mpd COntAlllilSff BMCi I know nothing specially about banking boat-
H ~
wrinkles sometimes form J* ot ci roles across the broad forehead. He to a eelt-poesessed
to. What aa- ft ““ j,, ^
bank expert
—-r-m. UMflffiKBE.
Brought As a Witness «y
John]
,jsj;
ISti
car company will Pennsylvania and oateaeeaee can oa
Relatives of Theodore Holle, aged twentyone, son of H. C. HoUe, of 84S East Market street, have received word that he fell over a thirty-foot-high embankment near Berkley, Ky.. last night and wae Instantly killed. Ha
East Washington street.
to Aenew Surest Car Tracks. Saturday night tbe street'car < tear oat tbe old carves at Peni Washington streets. In conseai
tbe College avenne line, Baft Washington street, Virginia avenue, English avenue, Blake street, Indiana avenne find Noble street will be taken off at 11 o’clock, and it to possible they will not be sent out aatil a o’clock
day morning. This new curve to * steel girder pattern, and will be a i provement over tbe present track.
A •iO.OOOUbel Bait.
David Goldman hae filed a libel euH for tl0 v 000 fltmiMrwi MAiut the Sub PbIiUbUiib Company, quoting la tee complaint aa am SSSBN *
ICoatiaaed from foxte Cincinnati. August
Wheat-Firm; finer grades Corn—Doll, weaker; file.
Bacon-pfcp, barrels, od
PSTROIT, August 1
weak; No. 1 white and No. 2 red September 79}*e, No. 3 red 73*
Dull and i 1 Oats—Dull
2.—Wheat—Dali aad
t-
last year at *12,342 a mile. The
wot aaseskbd at 825,949. The Ch!
ana Coal Railway Comp
wh« men
coal field, in order to hare a Chtoago line of their ewa. But tbto venture was aot auooeeaful. Finally the same men bought tbe 0. A E. I. and leased to it the 0. A1. 0. for a rental
i.
iig