Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-12-28
WOOD VOLUNTEERS AID
IN INSURANCE INQUIRY
Offer to Forget Differences"
Not Seriously Regarded by
Commissioner O'Neil

HARRISBURG, Dec 2s--Lyndon D.
wood, chief figure In the Pension Mutual
Life Insurance and Union Casualty Com
panIes, who up TO this time has fought
every effort Of state Insurance Commis-
sloner J. Denny ONell to protect the in
terests Of the stockholders and poiicyholders
in those corporations today sent letter
to the Insurance Department offering to
forget differences and 10 cooperate with
the department without charge even for
expenses incurred" In the work OF straight
enlnR ont the affairs which oNell says he
did 20 much to tangle
Woods letter ls not taken very seriously
al the department Commissioner O'Noll
smiled as he made the communication pub
lie IL Is 80 different from Woods former
attitude that the officials are inclined 20
believe there is something beyond g. as
there has been In every move that Wood
has made since ONeil fret began 20 ques-
ton tho condition OF the two companies.
Just what II is wood has in mind is not
known. but those who are going over the
books are not Inclined to accept his as
RiBtance. They have been instructed to
make a full, unbiased Investigation, and
Commissioner O'Nell said today that moth
ing would be permitted to Interfere with
the 1ling OF a report covering not only tho
accounts but the methods which led up TO
the conditions which caused the receiver
ship proceedings.
Woods letter. dated Philadelphia. De-
cenber %. Ia as follows:
I'm regard to the affairs OF the Pension
Mutual Life Insurance Company and their
adjustment through the Department of In
surance Of this state as receiver I take this
means of expressing TO you my desire 10
do anything possible within my power TO
assist in the solutions OF the problems con-
fronting the stockholders and the policy
holders Of this company Any service may
he able to render at any time VIII be given
without charge, even for expenses incurred.
My knowledge Of tho company'B affairs Ia
30 intimate that II ] can be OF any service
] hope you may sec your way clear To for
get differences and permit me TO render any
service | can. Sincerely
LYNDON u. WOOD"
BOOKS IN BAD SHAPE
Receiver Thomas +. Donaldson haa writ
ton the department that the books OF the
Pension Mutual are in even worse shape
than was suspected. and has asked for
assistance In untanglng them.
We are sending an actuary to Pittsburgh
today to assist In the Pension Mutual in
vestgation," said Commissioner O'Noil, ~
worked over the books several days myself
and can vouch for the truth Of the agser.
he two weeks at least before we are In
n position to make public summary OF
our findings The accountants at work on
the books have been instructed to exam
inc closely for any evidence OF crooked
dealings so that we may be In full pos
ressIon of the facts In case there appears
Justification for criminal proceedings"
The Investigators have already found rea-
son TO suspect that the minutes of the com
pnny were doctored to meet the necessity
49,
volving the payment Of large sums to in
terested parties for services which the In
surance Department regards az Of doubt
ful value.
Agreements and expenses OF the Pension
Mutual Company entered into and con-
tracted for since the application OF the
Insurance Department for n receiver will
not be approved by Commissioner O'Neil
without n specific order OF the court
PROCEEDINGS COSTLY |
THE recoIvorship proceedings in Phla-
delphla and Pittsburgh brought In an effort |
TO prevent the Insurance Department from |
acquiring control OF the companies I'm all |
likelihood will cost the pollcyholders and |
the stockholders of the Pension Mutual |
and the Union Casualty several thousand |
dollars in lawyers fees and expenses, re-
1elvership fees and bond charges
These expenses, to my way OF thinking. |
the bills until I am ordered to do so by the |
Court, after | have made the facts part |
II tho receivers report"
The commissioner called attention today |
o the fact that I'm both the Pension Mutual |
md the Union Casualty applications, as
He'd In the Federal courts by stockholders
Wood and his associates, the
liabilities of the companies were admitted
% be greater than charged by the Com
in the Dauphin County court
proceedings.
THE fact that Wood and his friends ad-
nit the insolvency OF the companies to be
,ven more serious than the State charges
= ample vindicaton of the State Insurance
Department" said Mr.. O'Neil. I'VE intend
% go right along with the investigation, and
hose In charge OF the work have been in
tructed to look especially for anything that
nay have the appearance OF criminal
regularity. We do not want to do any
hing that will unjustly lnJure anybody;
,ut we are determined to make life insur-
Ince a safe Investment In Pennsylvania
md TO that end we will endeavor to have
punished to the extent of the law any
rlmnal offenses that may come 10 light
we Will not be able to do anything In
he Union Casualty case until after the
tearing in Philadelphia on January Q,
when the State will ask TO have the Federal
curtis receiver discharged and the action
4 the Dauphin County court thereby sus-
aimed Until then we can do little but
mark time"
KIDS TO SAY