Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-11-25
Wizard Hoped to Con-
troll All Compulsory
Insurance
COMPANY IN OHIO
DESCRIBES SCHEME
Charged Promoter Set Out
Deliberately to Wreck Con-
Germs in Good Standing
INNUENDo AGENCY USED

NHe. AO0HOilQhIeu investment 1bilbhitgf "
which he Is the controlling force. although
he holds no Office in It, come from
far west az Dayton, q.
A letter from the manager Of the Ger
City Lifts Insurance Company. OF that city
explains in large part the methods Woo
used 20 gain control of companies he wante
70 bring into the Consolidated 1nvestmen
Company
Wood is the president Of the Pension Mu
tual Life Insurance Company, OF Pittsburgh
Tor which Insurance Commissioner j. Denn
cNeil expects the Dauphin County court
90 name a receiver on Monday. He ais
Is the controlling force behind the Unloi
Cnsualty Company. for which n receiver
ship hearing will be held next Wednesday.
1t has been charged that Wood deliber
ately set out to ruin life, fire and casualt
companies In good standing, and thus gal
control Of them. his purpose being TO merg
tnem all and get their stockholders to trad
I'm their stock for stock of the Consolidate
Investment Company.
LETTER OF OFFICIAL
II. r. Stapp, general manager of the Ger
City Life Insurance Company, writes to tn
EVENING LEDGER as follows
A representative of the Consolidated
Investment Company came to this city
and after first failing to align the ac-
tive management of this company with
q proposed plan to secure controlling
Interest of Its stock proceeded to at.
tempt to create distrust In the minds
OF the trustees for the stockholders
and the directors OF the inability of the
company to continue to operate sue
cessfully Also falling In this, Mr..
Wood personally tried the same plan
with the largest stockholder without
success.
After that. plan seems TO have been
made to inaugurate campaign OF
Misrepresentation OF the company's
condition among the executives of other
insurance companies operating in this
territory and insurance journals For
tunately, in every instance, we believe,
the matter was referred to us before
any reports received from that source
were published and the other insurance
companies approached made Inquiries
direct to this company before accepting
the reports made by the Consolidated
Investment Companys representatives
Among the specific statements made
were that this company was making
no progress, that Its surplus was Sprac-
tically depleted and that 1t was seek.
Ing a source of reinsurance. all OF
which were unqualitiedly false, We are
pleased TO inclose herewith a copy OF
she statement of the condition of this
firming this statement.
You will note the items that bear dl-
rectly on these points are the net assets
the life reserves and the net surplus.
the first two of which show splendid
increases, considering the limitations
of the company's operations, and the
third of which shows healthy margin
of safety, although small decrease,
which is a natural condition in the
Aarlv Of ppmnnnV'g nnvPl-
opment. This decrease, virtually ALL
was incurred in the first two months
Of the year. a readjustment of over
head expenses having been made as of
March /. the beginning of the COM
pany's fifth year, which since that time
has resulted in it's operations being
carried on with progressive increase in
its business, assets and reserves, with
virtually no expenditure from surplus.
Thanking you for referring this sub
Seet to us, and trusting that your eff
forts will be of material assistance
In relieving the public from the activi-
ties of the type of blue sky promo
ton that the activities OF l.. d. Wood
as represented by the Pension Mutual
Life Insurance Company and the Con-
Rolidated Investment Company repre-
sent. we are. yours, truly,
II. r. sTAPP,
General Manager.
OTHER COMPANIES HEARD FROM
There Is among other letters ono froT
Robert ]. wynne president OF the Firs
National Fire Insurance Company OF tn
United States. Washington. d. c., VIII
writes to the EVENING LEDGER from Wash
hgton. D. C. He says in part
Mr.. Lyndon d. Wood and his asso-
cates consplred with certain former Of
hclals Of this company TO secure con-
troll as early as last January.
Fortunately. after the expenditure OF
a large sum OF money, their attempt
resulted In a dismal failure. We do not
anticipate any further annoyance, in
view OF the fact that We judge from
your articles their operations have
been uncovered in several cases.
We believe that their actions in con-
neetion with this company. as well as
these disclosed by your articles, would
warrant criminal prosecution and Sc
we're punishment for all involved.
The subject matter in the letter from
Dayton corresponds to that described II
the equity suit between the Home Life In
auranee company, OF this city and SOM
atoclxholders. now pending in the Delaware
courts.
The Consolidated Investment compan,
would send out what 1t called its scouts,
either placing them in a job with the com
pany It wanted to get control OF or getting
them In positions where they could see anC
hear what was going on. Meanwhile somt
u Ihe eompany's stock was purchased. ant
If the Consolidated Investment Company
sat hold of something that II could fright
en stockholders with. as described In ths
letter from the manager Of the Gem Life
Insurance Company IL proceeded TO stil
Up trouble.
Equity suits would be begun. the matter
seuld get into the newspapers the stock
holders would get frightened. the credit Of
.ha company would be injured, and In time
.aa opportunity to purchase would present
liaelf
Tha scheme failed in Dayton and Wash
nEton as has been told, IL succeeded In
'he Union Casualty here.
The men back of the Consolidated IN,
Eeatuent Company planned. when through.
= he entirely dominant in this particularly
critic field for compulsory insuFanee-they
gaEa going to control All Federal State and
aaalcipal business SO far IS insurance
nfefed. and through the enormous profits
mich would accrue therefrom. reward the
IHceholdefs who went along as sell as
s. slooknolders IN the Consolidated In
aeat Company In which Lyndon d.
Esd The master mind. the Insurance
lard. as they called him. always retains
eeniSoliIug Interest, although ne IS care
& a4s 3 hold any office.
HES Aas been freansnt reference to
aa sm ee eQnsoltdating seventy