Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-06-20
PENROSE CHIEF
INSURANCE FOE
O'Neil Blames Failure to
Gain Legislation on
"Unseen Forces"
SENATOR OBSTRUCTIONIST
Measures to Prevent Wildcat
Companies Outlined by
Official

Asserting that the state Insurance De-
partment must be equipped with adequate
laws II it is to safeguard the public from
wildcat insurance schemes. j. Denny
| O'Neil, state Insurance Commissioner, today
! placed the blame for the Legislatures fall
ure to provide such laws directly upon the
| "well-known Penrose Gang"
O'Neil did not mince words, and in his In
dictment against the unseen forces" which
he says are blocking all insurance legisla-
tion charges that Penrose is the chief OBJ
| structionist
NEED NEW LAWS
For several weeks O'Neil has been em-
phasizing the need for laws which will sLfe-
guard the public from fake insurance COM
panles and INSCRIPTIONS hnanciers who
| manipulate the finances OF insurance COM
| panies for their personal profit.
Legislation which he maintains is essen
! tial to curb these evils has been held up oy
! unseen forces"
To-day he trained his guns on these "un-
seen forces" and revealed its identity.
II mean by that term" began the Com
missioner that the well-known Penrose
| gang is standing in the way Of insurance
!
| holders in the State. and which recent events
! in insurance circles have emphasized as I'M
peTative.'
Detailing the legislation which is re-
| duired to check insurance frauds, omen
| said
First. there is the 'blue-sky law. So
| called which would prevent the State OF
| PENNSYLVANIA from being what IT is to-
| day. the dumping ground for the sale Of the
| stocks Of myriads of bogus insurance COM
Danies that are not permitted to show their
| heads in any other State in the Union. Then
| there are laws for the better regulation and
control Of fraternal and beneficial societies
| so as to bring them under the immediate
| supervision of the Insurance Department
which is powerless to reach many OF their
| abuses as the laws stand today
| BESIDES these" he continued. there are
| laws framed for the purpose Of squelchins
! effectually the fraudulent operation or
| legion of small mutual fire companies. which
are springing up like mushrooms all over
| the state They are without responsibility,
here today and nowhere tomorrow, and are
! bleeding the community through an army
| of utterly INSCRIPTIONS organizers, adjusters
| and agents.
! AGAINST SHIFTING CONTROLS
| Another law which ! consider exceed
| ingly urgent" said the Commissioner, rs
| framed to prevent the control OF com.
! pany passing in a few hours from boaru
! Of directors to another board and creating
! such a condition as is now presented by the
| Pittsburgh Life and Trust Company.
Here was a company" said Mr.. ONeil
| "esta blished for over thirteen years, chart-
| cred by the state, with over 10000 policy
| holders and more than $23,OOO,OOO or as
| sets, II had on It's board of directors the
| leading men of the community, some IN
| the millionaire class. some holding high
| civic positions and hOnors.
| "They were men whose names were q
| guarantee to the policy holders that they
would not lightly relinqush the trust re-
| posed in them. The president Of the com
| pany who had organized II, died re"
| months ago one Of the directors assumed
| his position temporarily. Meanwhile 9
| gang of looters was busy in New York
| They had been looking for such conditions
| as now prevailed in the Pittsburgh Lie
| and Trust. They came to PITTSBURGH
| offered double the market price to TIM
| temporary president and as many directors
| as held the stock control for their hold
| ings The offer was accepted. In rev
| hours time the old board OF directors ha'
| resigned and their places were taken b!
| men who were the tools of the looters
! They were handed the keys of the vault
containing the cash and securities OF tn
| nolicy holders They appropriated $1,000,
600 and from this paid the old director
for their stock and left the company in
solvent.
NEW LAW URGENT
"This law which ] consider so very ur
! gent" said Mr. ONei would preven
such a catastrophe in the future. 1t re
| ouires all directors of insurance companie
10 give the department thirty days motto
| of their designations. 1t requires newl
elected directors to give thirty days motto
CT their election with proofs of the sam'
and forbids a new director from eXercisin
his functions till he receives the approva
of the department.
"Then there are III fraternal and benz
| fetal societies at present doing busines
in the State" continued the Commissions
, 'They are the workingman's life insuranC
companies, and as such should be under II
protecting arm Of the State to a muC
: greater degree than the big companies. B'
2 they are not The Insurance Departmel
has virtually no supervision over them.
, "A few years ago." said Mr.. ONeil,
= committee Of the National Convention
. | Insurance Commissioners, In conJuncuC
with a committee of the National Fratern
| Congress of the United States. formulat,
! at Mobile a law for the proper conduct
such societies, including supervision
State departments.
} "Thirty-hve States, including New Yor
Massachusetts and Connecticut, adopt
= this law but not the State of Pennsy
yania. Yet a bill which is exactly slmil
in every particular is being held up he
y in the Legislature through the influence
one man, the head of a fraternal socie
which is at present insolvent.
Complaints by hundreds pour into I
= department, showing in some instances a
= palling abuses