The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1903-04-08
PENNELL A DEFAULTER.
Said to Have Swindled Eastern
Investors.
Secret CT His Lavish Expenditure
With Little Visible Means of In
come = Sealed instructions Left T.
Administrator-Provides For Mrs
5urdick-Dispute Over Two Policies

Buffalo, April THE Commercial
publishes the following story:
Arthur r. Pennell, who was accuset
of the murder of Edwin L. Burdicl
and who was killed in an automobile
accident On March 10th, was de
faulter TO the extent of $150,000 O
100000, according to authentic infor
nation. He swindled estates Of friends.
in the east out of large sums of money
He carried over 100000 life insurance
in order that after his death those es
tates might be able 10 recoup ;ht
losses which they had sustained
through him.
This information comes from re
liable source. which, however, owing
to a pledge which has been given, can
not be divulged at this time.
Incidentally, it has been learned
that Pennell made provision for ;ht
payment to Mrs. Edwin L. Burdick G.
$4,000 cut of his life insurance.
The means by which Pennell de
rived an income that was sufficient tC
enable him to spend in the neighbor
hood of $4,000 a year has been E
mystery in this city for long time
Years ago, Pennell's most intimate
friends, who were familiar with the
legitimate sources of his income mar
veled at the lavishness CT his persona
expenditures. Pennell was carrying
life insurance which was costing hin
in the neighborhood of $1,000 year
His hCme was luxurious establish
ment. He owned an automobile, pat
ronized fashionable tailor, Travelled
great deal, and, in fact, lived like
man Of wealth.
Legal Business as a Side Issue.
He practiced law, but his legal busi
ness was side issue. He never seem
ed to have any cases in the courts
and was not known to be connected
in a professional way with any large
estates or interests Of any kind thai
would require his services as an at
tOrney.
There had been a suspicion among
a few Of Pennells most intimate
friends for some time that a good
part of his income had been derived
through bogus investment schemes
and that his wealthy friends and re
latives in the East we're the victims
But there was no proof that that was
so. Some time after his death it begar
to be rumorej that Pennell had
swindled his friends and relatives in
the east.
1t was stated that they sent money
to him to be invested in bonds anC
mortgages and in various mythical an
terprises at fancy rates of interest
and that Pennell, instead of investing
the funds, had used them himself and
had averted disclosure of his crooked
work by paying the interests on the
fake investments.
This story now has been found to be
substantially true, except that, so fal
as can be learned, he did not swindle
any of his relatives in the East, al
though it is understood that his wife's
relatives are among the victims.
The story of Pcnnell's extensive
swndles leaked out as the result of a
legal dispute over two life insurance
policies. 1t seems that there were two
policies taken out by Pennell which
were not handed over to the admins
traitor of the estate One of them was
for $4,000 issued by the Prudential
Insurance company and the ether was
for $4,000 issued by the Mutual Life
Insurance company. These two poll
cies had been assigned by Penneli
to Attorney Wallace Thayer in trust
In one he was referred to as
Wallace Thayer trustee, and ir |
the other he was designated Wal |
lace Thayer as trustee" There Is |
quite a difference between the term
trustee" and 'as trustee" and the |
insurance companies, which did not |
care to be held liable in the event |
that they pay the money over to the |
wrong person, took legal counsel in |
the matter and held up payments |
Mr.. Thayer and the attorneys for one
of the insurance companies talked the |
matter over J. Frederick Pennell |
administrator Of the estate also was
called in, and Mr.. Pennell insisted or
hat Inf
would consent to the payment of any
insurance money to Mr.. Thayer as
trustee.
Plan to Commit Suicide.
It was then that the story of Pen
nell's heavy 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
Burdick in accordance with the pro
visions Of the bond for $4,000 which
Pencil gave prior to his death, That
is the bond which Burdick found in the
box which his wife rented in the
vaults OF the safety deposit company
Mr. Thayer won't talk about it. II
fact, he has declined to give ever
the administrator Of Pencils estate
any information concerning It,
Mr.. Pennell the administrator
went to Mr. Thayer for the purpose Of
finding out the nature Of his trust, as
it was his duty as administrator tc
do. Mr.. Thayer wouldn't talk He
said Pennell had left sealed instruc
tions advising him as to how he was
TO dispose Of the $4,000 and that, as
a lawyer. who could not divulge the
nature of that trust.
Mr.. Pennell urged that as admins