The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-04-07

BUFFALO, N. Y, April 6.-The Com
mercial publishes a story in which 1T is
alleged that Arthur r. Pennell, who
was killed in an automobile accident on
March 10, was a defaulter to the eX-
tent of from $150,000 to 100000. The
story the Commercial says leaked out
as the result of legal dispute over
two life insurance policies. 1t is al
legged 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, 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 to
him for investment, 1t is alleged, he
spent, and when interest payments fell
due he made the payments out Of his
own pocket.
Wallace Thayer, who was PennelPS
attorney and intimate friend, is re-
ferred to as saying he had suspected
Irregularities, but that he had no proof
of any such wrong doing. Pennell
made provision for the payment to Mrs.
Edwin L. Burdick of 900 out of his
life insurance.
Insurance Money for Restitution.
Pennell carried over 5000, 600 life in
Surance in order that after his death
the Eastern estates to which he is al
legged to have been a defaulter might
be able to recoup the losses which
they sustained through him. In his
will Pennell named as administrator
of his estate his brother, J. Frederick
Pennell. He 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
sustained through his defalcations. The
Commercial adds that Pennell had con-
templated suicide two years, and says
the fact is known that Pennell 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 inten-
tion of committing suicide in that way,
but his nerve failed him. Recently he
told the story of the PeekskilI incident
himself. During the Pan American eX-
position he sought for days for an op-
portunity to commit suicide in man
ner that would make it appear acct
dental. 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.
There were two life policies which
had not been handed over to the ad-
ministFator. One was for $15,0 900 and
the other for $4,000. Those two poll
cies had been assigned by Pennell 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"
Payments Held Up.
The insurance companies took legal
counsel and held up payments. j. Fred
erick Pennell. the administrator of the
estate, was called in and insisted on
having more information before he
would consent to the payment of any
insurance money to Mr.. Thayer as
trustee. 1t was then that the story of
Pennelrs alleged defalcations and his
plans to commit suicide was made
known. The $25, 900 insurance money
assigned 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
PennelI gave prior to his death.
The administrator went to Mr.. Thay-
er to find out the nature of his trust.
Mr.. Thayer would not talk He said
Pennell had left sealed instructions ad-
ViSing him how he was to dispose of
the $4,000, and that, as a lawyer he
could not diVulge the nature of that
lIdHSStCllOli. Il Inc administrator urged
that he was entitled to know the ma
ture of the trust before he could con-
sent to have the money paid over. Mr.
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 more money to Mr.. Thayer The
probability is that the $4,000 will be
Dald INTO the courts Mr. Pnnnnu
this afternoon that if Pennell had
SWindled any estates in the East he
was ignorant of it.
FenneIl's Statement in Defense.
1t is now stated that interesting de.
velopments may be looked for at the
Pennell inquest. 1t is known that Pen
nell left a last statement in defense of
himself. In it he dealt with the Bur-
dick case, with Burdick and with his
relations with Mrs. Burdick. Pennell
said in this statement that Burdick was
Killed at midnight; that an unknown
woman killed him. He protested his
own innocence and said he had nothing
to do with the crime. He told of his
strained relations with Mr.. Burdick,
but insisted that his relations with Mrs,
Burdick were purely platonic
rms statement was finished by Pen.
nell the day before his death. After 1t
was hnished he set to work, on the day
OF his death, on a separate statement
The first statement was held pending
the completion Of the second. The last
has not been found. Unless there is
deliberate smothering of the first state
ment, District Attorney Coatsworth
and Judge Murphy will have it out at
the Pennell inquest Friday.
1t is now pointed out that it will be
impossible to divorce the Pennen in
quest from the Burdick inquest.
Pennell left letters to friends about
the Burdick case, detective reports, de-
tectlVe bills and other documents per-
talning to the shadowing of Rnrdiclx
IN an effort to get evidence against him
upon which to base a divorce case. It
is stated that the authorities have
some of these papers. 80
NHECCIATN nAY noD