Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-11-29
Union Casualty Denies
Insolvency and Declares
Receiver Isn't Needed

In answer to State Insurance Com
missioner j. Denny O'Neil's request of
the Dauphin county court for a re-
ceiver for the Union Casualty Insur-
ance Company. Philadelphia, r: c.
Bowers, president, denied that it is
insolvent and declared that there is
no necessity for a receiver. Attorney
Henry ]. Scott, Philadelphia, filed the
answer. The court has fixed De-
cember 19 for the hearing.
The Philadelphia Company and the
Pension Mutual Insurance Company,
Pittsburgh were made the subjects of
the insurance commissioners investi-
cation as he contended that the two
corporations were part of q gigantic
insurance combine that is being pro-
NOTED by Lyndon D. Wood. The
court fixed December Is for hearing
the Pension case.
The Philadelphia concern accord.
ing to President Bowers answer had
been authorized to transact a casual
ty insurance business and has trans
acted such business in Pennsylvania
up to and including May 1, 1916,
since which time it has written no
new insurance in this State or else
where. Not only does he deny that
the company is not insolvent but ADDS
that further transaction of business
will not be hazardous to policy hold
ers, creditors or the public"
Willing to Have Actuary
With the remark that he is per-
fectly contented that Lyndon II. Wood
shall place an actuary at work on the
books of the Pension Mutual Life In
surance Company, whose report shall
be made a part of the testimony for
the company at the hearing of the re-
ceivership proceedings November 2S
in the Dauphin county courts, State
Insurance Commissioner J. Denny
O'Neil to-day dumped upon the desk
of Attorney General Brown another
bundle of documents and reports from
the files of his department relating to
irregularities of Wood and his various
insurance schemes. The Insurance
Department officials believe that the
report of an actuary of itself would
be sufficient to cause the court to ap-
point a receiver for the company even
without the bulk of evidence which
it is the purpose of the State to
present.
Insurance Commissioner O'Neil says
IL would be folly for him to begin
criminal proceedings at this time. He
must await the outcome of the re-
ceivership proceedings to take any
formal action, but 1t is known that
already the Attorney Generals De-
partment has begun to move in that
direction.
O'Neil says there is no ground for
the assertion of Wood that the De-
partment officials took no exceptions
to his methods until the exposure
which brought on the present court
proceedings Deputy Commissioner
Samuel McCulloch and Chief Inspec-
tor w. ]. Roney repeatedly brought
the affairs of the Pension Mutual to
the attention of the head of the De-
partment and Commissioner Charles
Johnson on several occasions reported
conditions to the Attorney General.
Neither was Pennsylvania the only
State to question the operations of
Wood. Commissioner O'Neil has
turned over to Attorney General
Brown letters and reports from st.
Clair Allison, actuary of the Insur-
ance Department of Rhode Island,
and from the Insurance Department
of Indiana, where the Pension Mutual,
because of the Irregularities of its
MANAGEMENT, was rescinded as early
as 1915.