New-York tribune., 1903-04-07
PENNELI. A DEFAULTER?
CHARGES or FRAUD Made.
4mount InUOlUed SAID To Be about
5000 900.

Buffalo. April 6.-"The Commercial this af-
ternoon publishes story in which it is alleged
that Arthur r. PenneI who was killed in
automobile accident March 10. de-
faulter to the extent of from S150.Oo0 TO 500,
ONO. The story The Commercial" says. leaked
out as the result of a legal dispute two
life insurance policies, and is to the effect that
Pennell induced friends in the East who had
known his family and the family of his wife
to place money in his hands for investment
He acted, in fact their financial agent. He
would inform them of some good investment
which he had come across which would pay
excellent rate of interest, and they would send
him money. The money which was sent to him
for Investment. it is alleged. he spent. and when
interest payments fell due he made the payments
out of his own pocket.
Wallace Thayer. who PenneTs attorney
and intimate friend. is referred to saying he
had suspected irregularities. but that he had no
proof of any such wrongdoing.
1t has been learned that Pennell made pro-
vision for the payment to Mrs. Edwin L. Bur
dick of $4,000 out of his life insurance. PEN
nell carried over S2OOOOO life insurance, the
paper says. in order that after his death the
Eastern estates to which he is alleged to have
been a defaulter might be able to recoup the
losses which they had sustained through him.
In his will PenneI named as administrator Of
left to his administrator sealed instructions that
upon his death he should make good in full out
of his estate all the losses which had been sus-
tanned through his defaIcations.
THE CommerciaI' adds that Pennell had con-
templated suicide for two years. and says the
fact is known that "Pennelr planned two years
ago to throw himself in front of a train, at
Peekskill. and to make it appear that his death
was an accident. He stopped off at Peekskill
+,a
tention of committing suicide in that way, but
his nerve failed him. Recently he told the story
of the Peeksk incident himself. During the
Pan-American Exposition he sought for days
for an opportunity to commit suicide in man
ner that would make it appear accidental. He
had an idea that he could be in some
way while at the exposition, but he never could
nerve himself up to the point where he could
throw himself under train drop under the
wheels of a trolley car
1t appears there were two life policies which
had not been handed over to the administrators.
One was for Sl5WD and the other for 100000.
Ihose two policies had been assigned by PenneIl
70 wallace Thayer in trust, In he
ferred to as Wallace Thayer. trustee and in
trustee"
The insurance companies took legal counsel in
the matter and held up payments. J. Frederick
Pennel, the administrator of the estate,
called in. and insisted having more informa-
ton before he would consent to the payment of
1t was then that the story of Pennells alleged
defalcattons and his plans to commit suicide
were made known. The $4,000 insurance
money, assigned to Thayer. by Pennell in trust
is supposed to be paid to Mrs Burdick in
accordance with the provisions of the bond for
S5o.ooo which Pennel gave prior to his death.
Mr.. Pennell. the administrator. went to Mr..
Thayer for the purpose of finding out the nature
of his trust. Mr.. Thayer would not talk. He
said Penne had left sealed instructions advis-
ing him how he was TO dispose of the S23,UOo,
and that. lawyer, he could not divulge the
nature of that transaction.
Mr.. Pennel urged. that administrator. he
entitled to know the nature of the trust
before he could consent to have the money paid
over but Mr.. Thayer still refused to say what
the trust
Thomas Penney, attorney for the Pennell
estate, accordingly charged the insurance COM
panies to pay over no money to Mr.. Thayer
The proba bty is that the $4,000 will be paio
into the courts unless the insurance companies
take chance on paying ii either to Mr. Penney
or Mr.. Thayer.
Mr. Penney stated this afternoon that if Pen
nell had swindled any estates III the East he
was absolutely ignorant of it.