Evening journal., 1897-04-27
INSURANCE SWINDLE.
New Game of Pittsburgers Nipped
In the Bud.
The NOVEL DEVICE FOR DffRAUDlNG
The Combination Made Use of Old Men
who Were Out of Work and Seeking
Employment as a Means of
Furthering Their Ends.

Furthering Their Ends.
New York. April 27.--Lieutenant Ed
ward S. Farrow the retired United
States army officer who was arrested
al the Grand Central depot upon his
arrival from Canada. was taken to the
district attorneys office. He was taken
before Extradition Clerk Valentine and
mgned Il waiver Of identification, after
which he was turned over to State
! Agent Perkins Of Pennsylvania, who
started with him for Pittsburg
After eluding the vigilance Of de-
/ tectives for more than a week, during
which he was chased over 1,60O miles Of
erritory, Farrow was cleverly enticed
to New York and arrested.
Farrow is under indictment at Pitts
burg, charged with conspiring with c.
! Lynford Woods to defraud the Mutual
! Reserve Fund Life association. Woods
/ is now awaiting trial In Pittsburg.
Lieutenant Farrow formerly lived at 67
Seventh avenue, and detectives watch
ed the house until an indictment was
found and extradition papers obtained.
Farrow slipped away. however, through
the back yard, and then an extraordi-
nary chase began.
To Philadelphia, Pittsburg. back to
this city. and TO New Buffalo, where
he left the train and went across to
Canada at Niagara Falls, the sleuths
followed hot upon Farrow's trail. Then
the hunted man went to Montreal and
Toronto. finally stopping at Cornwall,
in Canada. There he received decoy
kilograms, which eventually brought
him to this city, where the detectives
were awaiting him.
Farrow is said to have been sending
in as much as $4,000 Of insurance risks
a day, and his commissions amounted
to many hundreds of dollars daily.
President Burnham's story.
President f. A. Burnham graphically
described the methods Of Woods & Far
row when seen at his residence. sc
East Seventy-eighth street. as follows;
"The partners started business as
bankers at Pittsburg," he said, under
the title Of c. Lynford Woods & Co.
Woods never was a banker, and the
whole business was a scheme To de-
fraud insurance companies. Their
method was to insure the lives Of old
and diseased men and then claim to be
creditors, with the expectation Of real
izing upon the life policies.
1T was a clever and deep laid scheme
which was operated in this manner:
They inserted advertisements in news
papers. stating that they required col
lectors men, between so and 60 years
; of age easy work.
This attracted hundreds Of appli-
. cants, who were all told that before
{ they could enter upon their duties the,
! must supply a bond. Most of the men
5 Of course, could MT get bonds. Wood
i ] 4 4~r~
e life insurance In place Of a bond w
g have ample evidence that those VIII
t were willing to supply bonds were toll
7 that they were not suitable, and thei
d services were rejected. Hr.-f
e The prospective collectors were the
made to sign an application for life in
surance and a promissory note. Thi
note was left blank, ready 10 be file
in. Then the application was forwarde
= to us, signed improper form by a doctor
and the policy was issued. The blanl
e promissory notes were then filled I'm 70
Y the sum of the policy, and the schem
- was complete.
e 1--WE have, however, an inspection de
[ partment, and in the regular course O
y business our inspectors reported tina
/. the large majority of the clients O
b Woods & Farrow were old and disease
e men. the very worst class of risks.
n For instance, one man named Bail
@ was described as 81 years Of age and
- glass manufacturer. He was insure
e for $4,000. We found that he was bro
d ken down war pensioner. who befor
o the war had worked as a glassblowe
d but since had done nothing but drin
e whisky. draw his pension and slee
e wherever they would let him.
faI fr,a
r mediately fell in a dead faint Whe
d he revived, he made a full written cor
fession, TO which he swore before
magistrate In this he described th
whole scheme and claimed that ne wer
j. into IL at the suggestion Of Farrov
y, The lieutenant fled to Canada and we
le only captured yesterday"
r. Farrow's Statement.
el When Farrow was arrested he mao
Sc sweeping charges against Presidei
Id Burnham and the Mutual Reserve con
as pany, alleging that he was sent
as Pittsburg to do dirty work" and figl
~ some battles for the association.
he In reply to these charges Presidei
lie Burnham said;
A. "The man is driven to desperate
and now makes charges against
which are all rot If we knew abo
his transactions, why should he ha'
IN been arrested?
or "Three other companies issued po
T. cies on the same class of lives obtain
10 through Woods and Farrow, but tn
~ got their policies back and said not
~ ing So long as 7 am president Of &
,b Mutual Reserve 7 think 1t my duty
~ see that my company is not defraud
~, and TO punish those who attempt IL.
There are three doctors in Pittsbu
Il. who signed these applications, and
FAR as we knew they were all reputat
men. They may have been imposed u
on. for they knew nothing of the iden
ty OF the men brought to them. al
III substitutes may have been examined
ei After Woods arrest his offices we
ch searched and papers found which e
ne posed the whole scheme There we
5h letters from Farrow, respecting app
~ cants. containing such notes as thes
~ John Smith. As years. Looks health
iu' Let him go Thomas Jones. So yea
es' Heart disease. Good to hold on to-