The sun. (Wilmington, Del.) 1897-19??, 1901-01-11
ACCUSED OF FRAUDS.
Conspiracy Charged by the
Colonial Insurance Company.
NEW JERSEY MEN ARRESTED
Accusation Made Tbnt Citizens OF
Union Hill Were In n Plot to
Fraudulently obtain In
supnnce Policies.

Jersey City. Jan. 10.--Three men have
been arrested one a physician in good
standing at Union Hill, n. j.; one an
EDITOR and the other prizefghter of the
same place, charged with being implicat-
ed in a conspiracy to defraud an insur-
ance company.
The prisoners, who were taken to po-
lice headquarters in Jersey City, are Dr.
Edward Jahr, Thomas Martin, editor of
the Union Hill Daily Dispatch, and
William Kelly, known to the fistic world
as Spider Kelly.
A warrant is out for one other man OF
Union Hill, who is said to be implicated
in the alleged fraud. He is William
Necker, an undertaken.
1t is said that the first information in
regard to the affair was obtained soon
after the death of Thomas Moran, who
died of consumption in October last.
He had policy for 1919, which was
written in February, 1900, by William
Kelly, who was agent for the insurance
company.
DIR. .Iahr, who was medical examiner,
attended Moran in his last illness. The
money, it is said, was paid to Editor
Martin. Necker the undertaken, paid all
the premiums on the policy.
Word reached the officers of the insur-
ance company that all was not right. An
investigation followed, and other frauds
nre said to have been discovered
II was customary in the case of death
for the alleged conspirators to place bod
les in evidence. These bodies, it is said,
were obtained from Bellevue hospital.
A thorough investigation is being made,
and other arrests may follow those for
which warrants have been issued.
MIR. Martins Story.
Mr.. Martin said to reporter
.''rhe story of an insurance fraud is q
surprise to me. 1t is the first | have
heard Of anything of the kind. All ]
know about the Colonial Life Insurance
company is this;
My wife's brother. Robert Brennan
who had been living with ms for some
time, took out what they call an indus
trial policy for $2I0. paying u cents Il
week in premiums. He first proposed to
4 have the policy made out in the name Of
my wife, but She said better be the ben
efciary. Mrs. Martin paid some Of the
premiums, and last October Brennan
died. He was only IL years old. The
company ut once paid the money 70 me.
/ Il hold policy on my little girl, bu,
\ after what has happened ] shall cancc
! it, This is all | know about the insnr
ancc company.
Il know Mr. Necker, the undertaken
but | never heard his name mentioned il
connection with fraud of any kind. ! dc
not know DIR. .Iahr. ] have heard of vii
| liam Kelly as the representative OF thu
4 Colonial company, but am not acquainted
with him.
Il want to say most emphaticaly thu
know of no insurance fraud whatever
nor did ever hear before of any 50 call
ed wholesale traffic in bodies at Bellevue
hospital"
Undertaken Necker was in Orange con
Quoting funeral At his place of busl
ness no one knew of any warrant out t.
his arrest.
Statement by omciaI.
An official of the Colonial Insurance
company said that il was discovered tina
Kelly had been writing bad risks. and h
was discharged. In several cases. it |
i said, he grossly misrepreSen!ud the fact
concerning the persons whose lives he III
sured
The examining physician of the con
pany, the official said, is not believed t
have any guilty connection with th
frauds. Their opinion is, rather. that Il
was the innocent tool Of the swindlers.
The official interviewed said that tire
cases of fraud had come TO the know
edge Of the company. and il vas suspee
ed that many more would he ilnearthe'
In the three cases referred 10 all the pc
sons insured died soon after the polici,
on their lives had been issued
The official said that he did not kno
of any bodies having bet~ secured fro
Bellevue hospital and palmed off as tho'
of persons insured who had died. II
had heard, however, of IA patient havil
been taken to Jersey City from Beleyl
and insured, although nj the time he ";
in critical condition.
Hanging In Pennsylvania.