The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-01-15
ANOTHER TANGLED
FINANCIAL
STORY
ATTEMPT MADE TO DEFRAuD
WESTERN LIFE OF 100000.
Loss Sustained Is Only $1,000, And
Authorities Of Cooke Co. Will
Conduct an Investigation.

Chicago, Jan. 15-The Chicago Tri-
bune today prints the following news
article:
Another tangled financial story in
volving the Western Life Indemnity
company, has come to light and
brought in its wake a promise of in
vestigation by the authorities of Cook
county.
According to the charges, which
will be laid before States Attorney
Wayman, the life insurance company.
of which General George NJ Moulton
is president, narrowly escaped being
defrauded through one of the most re.
nlarkable transactions on record. The
company which stood TO lose 100000,
finally wriggled out with net loss OF
only $4,000
THE direct violation OF an order
of United States Circuit Judge Kohl
saat to restore 100000 cash to the
treasury of the Western Life Indem-
nifty company. these bonds. purporting
TO be 100000 face value, were substi-
tCted.
The bonds were issued by an ephe-
neral. really an imaginary company,
which was not incorporated till after
the securities had been printed and
delivered to the insurance company.
The bonds were issued on a vacant
lot and an option on the lease hold
Of an ancient office building, the op-
tion never being perfected.
These facts, it appears, never came
to the attention of Judge KoElsaat in
contempt OF whose order the acts
were. but the character of tho bonds
eventually was discovered by outside
parties and the securities were taken
from the insurance company's treasury
and replaced by cash under thrents
OF exposure for the persons involved
in the deal
1.-The bonds, it is assorted, were de-
stroyed Immediately after the discov-
cry OF their character, but samples
and photographs Of the securities are
in existence and will be submitted to
the states attorney.
General Moulton and his associates
In the insurance company declare
that they believe the bonds genuine
and of face value and that they were
innocent of any wrongful intent IN
accepting them as cash. and placing
them in the company's treasury.
"The facts bearing on the transac-
ton are likely to come out in tho
course of hearing before Federal
Master in Chancery Bishop. The at
torneys for the insurance company
were ordered TO bring in their books
next Monday and show the court the
expenditures incident TO the long
drawn out litigation, one chapter Of
which closed last week with Judge
Kohlsaat's decree ordering Moulton,
u. F. Rosenfeld and w. II. Gray to re-
store s2O0.OG0 to the company. The
amount was involved in another deal
entirely separate from the bond affair-
Attorney Sol Levinson. represent
inc the complaining policyholders in
that litigation, announced before the
master that 1t was his intention 10 In
ouire into the circumstances sur
rounding the scheme to re-insure the
Western Indemnity in the security life
and annuity company of Philadelphia.
II this investigation is pursued 1t may
disclose the details OF the bond deal,
"The Investigation to be pressed be-
fore States Attorney Waymap VIII be
a different move inaugurated by other
interests"