The daily morning journal and courier., 1903-04-07
AR. PBNNBLL A DEFAULTER
SHORT TO ESTATES FROM $780,
 900 TO $200,00O.

Facts Leak Out as Result of Legal Dis. pute Over Two Life Insurance Policies The Provision to Pay Mrs. Burdick
 S25,O0O-Carried S20O, ,0Oo Insuranc ce in
 Order to Make Good His Shortages- Contemplated Suicide for Two Years. Buffalo, April 6.-The Commercial this afternoon publishes a story in which it is alleged that Arthur R. Pen 1 nell, who was killed in an automobile accident on March 10, was a defaulter to the extent of from $150,00O to $2O0,000. The story, the Commercial says, leaked out as the result of a legal dispute over two life insurance policies, and is to the effect that Pennell induced friends in l 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, as their financial agent. He would inform them of some good investment which he had come across which would l pay an excellent rate of interest, and they would send him money. The mon ey which was sent to him for invest ment, it is alleged, he spent and when interest payments fell due he made the payments out of his own pocket. l Wallace Thayer who was Pencils attorney and intimate friend, is refer red to by the paper as saying he had suspected irregularities, but that he had no proof of any such wrong-doing. Incidentally, it has been learned that Pennell made provision for the pay ment to Mrs. Edwin L. Burdick of $25, 900 out of his life insurance.
 | Pennell carried over $200,000 life in- surance in order that after his death the eastern estates against which he is alleged to have defauIted might be able to recoup the losses which they had sustained through him. In his will Pennell natied as administrator of his estate his brother, J. Frederick Pennell. He left to his administrator sealed in- structions that upon his death he should make good in full out of his es- tate all the losses which had been sus- tained through his defalcations.
 1 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 train at Peekskill 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 committing suicide in that way, but his nerve fail- ed him. Recently he told the story of the Peekskill incident himself. During the Pan-American exposition he sought for days for an opportunity to commit suicide in manner that would make it appear accidental. He had an idea that he could be run over in some way while at the exposition, but he never could nerve himself up to the point where he could throw himself under a train or drop under the wheels of trolley car. '
 It appears that there were two life policies which had not been handed over to the administrator. One was for $15,o00 and the other for $10,000. These two policies had been assigned by Pen nell to Attorney Wallace Thayer in trust. In one he was referred to as Wallace Thayer, trustee" and in the other he was designated Wallace Thayer, as trustee"
 1 The insurance companies took legal counsel in the matter and held up pay ments. J. Frederick Pennell, the ad- ministrato'r of the estate, was called in and insisted on having more informa- tion before he would consent to the payment of any insurance money to MT. | Thayer as trustee. It was then that the story of Pennells alleged defelca- tions and his plans to commit suicide were made known. The $25,000 insur- ance money assigned to Thayer by Pen- nell, in trust, is supposed to be paid over to Mrs. Burdick in accordance with the provisions of the bond for $5000O which Pennell gave prior to his death. MT. Thayer has declined to give the administrator of Pennelrs es- tate any information concerning it.
 Mr Pennell, the administrator, went to Mir. Thayer for the purpose of find- ing out the nature of his trust, as it was his duty of administrator to do. MT. Thayer would not tell. He said Pennell had left sealed instructions ad- vising him as to how he was to dispose of the $25,O0O, and that as a lawyer he could not divulge the nature of that l llfdHSdCllOll-
 Mr. Pennell urged that as admins trator he was entitled to know the f1a- ture of the trust before he could con- sent to have the money paid over MT. Thayer still refused to say what the trust was.
 Thomas Penney, attorney for the Pennell estate, accordingly charged the insurance companies to pay over no money to Mir Thayer. The probability is that the $25O00 will be paid into the courts unless the insurance companies take chances on paying it either to MT. Penney or MT. Thayer.
 MT. Penney stated this afternoon that if Pennell had swindled any es- tates in the east. he was absolutely ig- norant of it.
 l Estate of Mrs. PenNeil.
 n lL@,, .ss.sr