Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-07
GRAND JURY PROBE
IOF LIFE
New Warrant for Birdseye,
Chief. Promoter of AL
legged Fraud
O'NEIL NAMED RECEIVER
Insurance Commissioner Put in
Charge of Insurance Com
pany's Business

The Grand Jury in Pittsburgh. Pa, this
afternoon is hearing details of the con-
spiracy through which II Is charged the
Pittsburgh Life and Trust Company. of
Pittsburgh Pa was looted Of more than
$4,000 600. Clarence +, BirdScyo, chief of
the New York promoters who are accused
of wrecking the concern, failed 10 appear
for the preliminary hearing before Alder
man Kirby, in Pittsburgh today. When
Birdscyc's absence was discovered by the
State Insurance Department new warrants
were issued against him on charges OF con-
spiracy
j. Denny o'Neil, State insurance Commits
sioner of Pennsylvania today wa named
received for the Pittsburgh company
The appointment was made by the Fed
eral court in Pittsburgh No dissolution
order was made by the court. il being uu-
derstood that O'Neil and his assistants will
take charge of the affairs Of the company,
Investigate thoroughly the prospects Of re
habilitation, and at the end OF two weeks
report to the court.
Insurance men, men connected with
reputable companies, say thai again the
lax insurance laws of Pennsylvania, which
have received no attention iu the present
Legislature. are directly responsible for the
footing of more than $2hUu,uUJ out or the
Insurance company.
The smash Of the Pittsburgh Lii" ana
Trust Company. which is otliccrcd 10y some
of Pittsburgh's best.knowu huaucicrs, close
ty rOllOWS the seaman OF inc ltllFl'I h Ntlhl
Life Insurance Company, also Of Pitts
burgh. and the Union Casualty Insurance
Company, Of Philadelphia, both Of which
Companies were exposed several months
ago by the EVENING LEDGER
Months ago when this newspaper
brought to light the methods used by the
Pension Mutual Company, representatives
of leading Pennsylvania iusuraHc" COM
panies urged the state Insurance Depart
ment to have laws enacted similar to the
stringent insurance laws now enforced in
the state of Now York The Pittsburgh
smash could not have happened If Penn
sylvania had insurance laws similar 10 those
OF New York state
Both the Pension and Union Casualty
companies were wrecked through the ma
nipuations and mutual Juggling of the poll
Icy holders funds When the disclosures
of the inner workings" Of those two COM
panies we're aired in the courts it Wgs the
consensus of opinion of officers Of leading
Insurance companies that such thing could
not have happened If Pennsylvania had
taken precautions of the kind adopted in
New York following the Hughes nNestiga-
ton of insurance companeS many years
ago,
The state Insurance Department says al
legged dummy directors Of the Pittsburgh
Life and Trust Company did wha; they
pleased with the securities and bonds owned
by that company The chief feature Of their
operations was to remove bonds and securi-
Ties ana exchange them for other bonds Of
the same value and later sell them to their
own company for larger amounts. This
operation continued until the treasury Of
the Pittsburgh Company was relieved of
more than S2.OGO.0OO.
Seven warrants have been issued for
seven of the dummy directors. all Of whom
have fled from Pittsburgh and are now in
hiding in different parts of Greater New
York.
The present scandal is described by the
State Insurance Department as one of the
most gigantic insurance swindles that has
ever taken place in this State It was to
prevent similar scandals, the kind that fol-
lowed the expose of the Pension Mutual
Company, that the EvESING LEDGER called
upon the State Insurance Department and
members of the present Legislature to
enact more stringent insurance laws
First of all under adequate laws it
would have been necessary for the Pitts
burgh Life and Trust Company to present
their proposition to the State Insurance De-
partment before any of the bonds or
curities could have been turned over to
the directors.
State Insurance Commissioner O'Neil has
announced that a bill will be introduced in
the present legislature making II compul-
sorry for any company in the insurance
business to consult with the Pennsylvania
Insurance Department before il can turn
over any Of it's bonds to its directors. This
bill is scheduled to be introduced in the
Legislature next Monday.
Attorney General Francis Shunl, Brown
and his assistant Deputy Attorney General
Kun, are in Pittsburgh today looking into
the affairs of the Pittsburgh Life and Trust
Company. IT is understood that $22 ,0OO,-
900 will be necessary 10 rcnsure the COM
pany.