Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-11-09
WOOD BLAMES
WAR FOR BLOW
AT MUTUALCO.
Stopped Stock Sales,
Insurance Promoter
Declares
MANY TRIBULATIONS N S

The European war, according TO Lyndon
~ wood, Insurance expert, and retered 70
rs the insurance wizard OF America, was
responsible to a certain extent for Grip
pllng the affairs Of the Pension Mutual Life
insurance Company OF Pittsburgh, Pa, for
which a receivershp has been asked by the
insurance Department. This company,
which carried on It's books insurance on mau
carriers and postoffice clerks of this city for
sums aggregating Sl,0s4, 900, has dehcit
OF sl1ss,4226O
Wood today broke his silence since dis
closures OF the inner workings OF the Pen.
son Mutual Life Insurance Company, OF
Whch ne Is president. we're made by an eN-
animation of the company's books by ex-
amners OF the Insurance Department He
named two residents of this city whom he
accused or threatening to drive him out OF
the insurance field as well as out OF this
state.
Il am getting ready to prepare my cud-
gels Of war and at the proper time l will
have something TO say in answer TO these
threats said Wood today. in his private
office OF the Consolidated Investment Com
pany, on the eighth floor of the Finance
Building
Policy holders in the Pension Mutual
Life Insurance Company. whoss home Office
is OVER a small barbershop and poolroom
in the Soho section Of Pittsburgh, Pa. ac-
| cording to Wood, need have no fear OF
| their heirs not receiving tuii payments upon
evidence OF death He said that there was
a sufficient amount in the reserve fund to
meet obligations on all death policies. The
net reserve OF the company. December 81,
| 1914. was S234,445
| The Pension Mutual Life Insurance
| Company, as II is known generally" said
Mr.. Wood. was at its beginning known as
| the Pension Life Society which in turn
| was composed of the American Life and
| Annuity Society and the order of Unity.
| An old legislative charter was procured.
| 81 Of HnN., he fnN.,
and the pension company was drawn and
| finally approved In writing by our State
| Department Of Insurance. Unfortunately
before the approval and as the result OF
| suggestions by various attorneys employed
and by our State Department OF Insurance
II was amended In such a way that II 1:
possible to put two widely different con-
structions upon that portion OF the contract
dealing with the reserves to be established
upon the old assessment business
The company took from the bensior
society $4,000 OF assets, and In exchang,
distributed an equal amount Of its capita
stock among about 900 members of tn,
society who had preferential o. profit-shar
ing contracts. This was done with tn,
knowledge and consent of the State De
partment of Insurance. The company
capital stock was then offered for sale 4
the Pension Socety's policy holders at par
| one share only for each thousand of insur
ance which they had In force and in tina
way a small additional amount was sold
The stock was offered to the public a
$62.50 per share par being $50, and
sufficient amount sold to enable the compan.
to comply with the State requirements a.
to minimum capitalization and a small sur
plus was created.
Mr.. Wood today gave a historical sketc
of the early history of the Pension Mutus
Life Insurance Company. which has ha
its many tribulations within the last fey
years, and whose present troubles. II
said. will lead to some unchronicled dat
dealing with political Tows in which we
known persons are central figures.
STATES ACTION.
"An examination was asked for. and o.
the examination the State actuaries charge
the company with the full legal reserve o.
al! of the outstanding assessment business