The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-07
pENNELL WAS A DEFAULTER.
ROgBED ESTATES or FRIENDS
or LARGE SUNS.
carried over 100000 Life Insurance
80 That After Ills Death the Defalca.
lion Could he Made Good--Had Con.
tenplatcd suicide for Two Years.

BrrF.Io. April 8.-On the grave OF Arthur
R,ed P,nncl another charge, that Of de-
laulting. was cast to-day. He is said to
have swindled friends in the East out Of
nearly 100000 and to have provided In
,npers found after his death that reparation
,hould be made with his life insurance
moneys
This information appeared o-night in an
extra edition OF q &C nservative newspaper
which enjoys very close relations with
Thomas Penney. who was Pencils law
,artncr before he became District Attorney,
and who has acted for the Pennen estate
since Pencil and his wife were crushed TO
death by their automobile in the stone
quarry at kensington.
From the same source came a statement
confirming the rumor that Pencil left
$4,000 Of his insurance to Mrs. Alice Hull
Bmdick. whose relations with him were
exposed at the inquest into the death Of
her husband Edwin l.. Burdick, the victim
Of a murder for which Pencil would have
leen arrested had he lived.
The story of Pencils alleged swindles
came out because OF dispute over this
provision for Mrs. Burdick. One Of the
poiicies was for $4,000, and was issued by
the Prudential company, and the other.
ofsiO,OOO, was written by the Mutual Life.
They were assigned by Pencil in trust to
Attorney Wallace Thayer, trustee, who was
Pencils close friend and counsellor. The
money was intended to be paid by Thayer
to Mrs. Burdick in accordance with the
provisions Of the bond which Burdick dis
covered in his wfe's safe deposit box.
in one OF the policies Thayer was referred
10 as wallace Thayer, Trustee" and in
the other he was designated Wallace Thayer
as Trustee There is quite difference
between the term trustee" and -as trustee
and the insurance companies, which did
not care to be held liable in the event chat
they paid 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 COM
panies talked the matter over. j. Freder-
lex Pennell, the administrator Of the estate.
also was called In, and Mr.. Pencil insisted
on having more information before he
would consent to the payment OF any in
pranee to Mr.. Thayer as trustee.
il was then that the story OF A. X. Pencils
swindling came out, for ]. Frederick Pennell
undoubtedly had learned all there was
about il. having received from his brother,
Il is said, sealed instructions to make good
his defaloations.
To-day's revelations appear to explain
why Pencil was able to live 30 we'll without
any visible income except a small law prac-
tice, and why hs could pay 1000 . year
insurance premiums. Even before his
death stories were circulated as TO his source
Of money, the most absurd OF these being
that he acted as a go-between for the police
and the gamblers. The absurdity Of this
lay in the fact that Pennen spent more than
all the gamblers In town were able to spend
and because he was utterly unfamiliar with
gamblers and their methods OF buying pro-
lection. Another report had Il that he was
Interested in q get-rich-quick scheme.
There had been o suspicion among a
few OF Pencils most intimate friends
for some time that a good part Of his in
come had been derived through fraudulent
investment schemes. and that his wealthy
friends and relatives In the East were the
victims. But there was no proof that that
was 40. Some time after his death II be-
CANT I've rumored that Pennell had swinded
bis friends and relatives In the East II
was asserted that they sent money to him
10 invest in bonds and mortgages and In
various mythical enterprises at fancy
rates OF interest and that Pennell, instead
Of investing the money. had used IL himself
and had. averted disclosure Of his crooked
work by paying the interest on the fake
investment.
II is not supposed that Pennell swindled
any Of his own relatives, but 1t In said that
ZONE Of his wife's relatives were among
the victims. These and others, as the
tiory goes, were induced by Pennell to
place money in his hands for investment.
lie acted in fact, as their financial agent
lie would inform them Of some good
thing which would pay an excellent rate
ofintorest and they wo uld send him money
He sold them fake bonds and mortgages
and fake stocks. The money which was
When interest payments fell due on the
lake Investments. he made the payments
cut Of his own pocket. In that way his
sTlndes were never discovered by his
victims.
The informant says that Pennell real
end OF his rope, planned to kill himself and
reimburse his victimized friends with
Ile insurance, and he took out nearly
$4,000 in various life and accident COM
ianies' making policies payable to his
In his will Pennell named a. adminis-
na'or OF his estate his brother, j. Frederick
rennell, He left to his administrator
Iaeu INSTRUCTIONS that upon his death he
M1uid make good in full out Of his estate
~ The losses which had been sust aimed
h,ough his defalcations.
rennell had contemplated suicide for
so years. The fact Is known, and II was
Iart OF the revelations made to-day that
w Two years he had been endeavoring to
nerve himself 10 take his own life. Pennell
Pahned Two years ago to throw himself
mHont Of a train at Peekskill He wanted
make II appear that his death was an
ttNSdent He stopped on a train at Peel&- |
NJ with the intention OF committing sui |
pae IN that way. but his nerve failed him. |
secehtly he told the story OF the Peekskill |
INCIDENT himself
Ourlng the Pan-Amercan Exposition he !
nSush, Tor days for an opportunity to COM /,
~. su lde IN manner that would make |
APPEAR accidental. He had an idea that |
could he run over In some way while at |
H. ~ opposition but he never could nerve |
het up 10 the point where he could |
bnow himself under train or drop under |
az wheels OF trolley car. Pennell told all |
aortl that himself before he died
n, ,hat was the story that was brought out \
s,a we result Of threatened legal difficulties |
NJ TWO 81 Pencils insurance policies. |
49, not been for the provision for hrr. |
nuck, the matter undoubtedly would |
neen settled privately. Such were |
'heh : instructions TO his brother On
-. - L. I-la