Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-04-07
WAS A DEFAULTER.
Another Chapter in Tragic Life
of Arthur PenneII.
Said to Have Been DefauIter to Ex-
tent Of $4,000 to 100000.
Insurance Gives Mrs. Burdick $25, 900
and Provides for SteaIings.

Buffalo, N. Y, April 6.-The Com
merciai, this afternoon, publishes a
story in which it is alleged that Ar
| thur r. Pencil, who was killed in an
automobile accident, March 10, was a
defaulter to the extent of from $3.50, 900
| to 100000. The story, the Commercial
says, leaked out as the result of le-
gal dispute over two life insurance
policies and is to the effect that Pen
nell induced friends in the East who
had known mis- family and the family
of his wife to place money in his hands
for investment. He acted, in fact, as
their financial agent. He would inform
them of some good investment which
he had come across which would pay
an excellent rate of interest, and they
would send him money. The money
which was sent him for investment,
it is alleged, he spent and when in
terest payments fell due he made the
payments out of his own pocket. WAL
lace Thayer, who was Pennell's attor-
ney and intimate friend, is referred to
by the paper as saying that he had
suspected Irregularities, but that he had
no proof of any such wrongdoing.
Incidentally, it has been learned that
Pennell made provision for the pay
ment to Mrs. Edwin L. Burdick of $685.
900 out of his life insurance.
Pencil carried over 100000 life in
surance in order that after his death
the Eastern estates against which he
is alleged to have defaulted might be
able to recoup the losses which they
had sustained through him.
In his will Pennell named as admin
strator of his estate his brother, J.
Frederick Pennell. He left to his adj
ministrator sealed instructions that up
on his death he should make good in
full out of his estate all the losses
which had been sustained through his
defalcations.
The Commercial adds that Pennell
had contemplated suicide for two years,
and says the fact is known that Pen
nell planned two years ago to throw
himself in front of a train at Peeks-
skill, and to make it appear that his
death was an accident. He stopped
off at Peekskill on the way back from
New York with the intention of COM
hitting suicide in that way, but his
nerve failed him. Recently he told the
story of the Peekskill incident HIM
self.
During the Pan-American EXPOSE
ton he sought for days for an oppor-
tunity to commit suicide in a manner
that would make it appear accidental. |
He had an idea that he could be run
over in some way while at the Expo
sition, but he never could nerve him.
self up to the point where he could |
throw himself under train or drop
under the wheels of trolley car.
1t appears that there were two life |
policies which had not been handed |
over to the administrator. One was for |
$4,000 and the other for 10000 |
These two policies had been assigned |
by Pencil to Attorney Wallace Thayer
in trust. In one he was referred to |
Wallace Thayer, trustee" and in the |
other he was designated wallace |
rhayer, as trustee The insurance
companies took legal counsel matter |
and held up payments.
j. Frederick Pencil, the administra-
tor of the estate, was called in and in
sisted on having more information be-
fore he would consent to the payment |
of any insurance money to Mr.. Thayer
as trustee 1t was then that the story
Of Pencils alleged defalcations and his
plans to commit suicide were made
known.
The $4,000 insurance money, as
signed to Thayer by Pennell in trust, is
supposed to be paid over to Mrs. Bur-
dick in accordance with the provisions
of the bond for $4,000, which Pennell
gave prior to his death. Mr.. Thayer
declined to give the administrators of
Pencils estate any information con-
corning it.
Mr.. Pennell, the administrator, went
to Mr.. Thayer for the purpose of find
ing out the nature of his trust, as it
was his administrator to do. Mr..
Thayer would not talk. He said Pen
nell had left sealed instructions advis-
ng him as to how he was to dispose
Of the $4,000 and that, as a lawyer,
ne could not divulge the nature of that
transaction.
Mr.. Pennell urged that as adminis-
rator he was entitled to know the
nature of the trust before he consented
o have the money paid over. Mr..
rhayer still refused to say what the
rust was.
Thomas Penney, attorney for the