New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-04
Pittsburgh Life
Deal Exposed by
Dummy Director
He Presided When Gilt
Edged Securities Were
Exchanged

William D. McQucsten, vice-presi-
dent and executive head OF the Pitts
hurgh Life and Trust Company while
Clarence F. Birdscye and his associ-
ates were exchanging. it is charged,
the gilt-edged securities Of the COM
pany for lumber bonds Of doubtful
value, yesterday at the District Attor-
ney's office told Of the transactions
which led the company into the hands
of a receiver.
For attending the first meeting OF
the board Ct directors selected by
Birdseyo and his son Kellogg, McQues-
ten said he received S25 in gold. This,
he declared, Clarence F. Birdseye later
made him return, saying that as an
officer Of the company he would be
paid a regular salary. Later he re-
ceived two $50 checks as wages at the
rate of S25 a week. This money he
returned by advice Of counsel.
Jesse f. Phillips, State Superinten-
dent Of Insurance, was in touch with
the District Attorneys Office during
the day, spending last night at Mr..
Swann's home going over the details
Of the case. Deputy Attorney General
Davis of Pennsylvania will confer with
Mr.. Swami this morning.
Case TO Grand Jury Next Week
The case probably will be in shape
for presentation to the grand jury
early next week
In his story TO Mr.. Swami McQues-
ten told of being a neighbor of Kel-
logg Birdseye in Mt. Vernon and Of
being asked to 20 to Pittsburgh to as
sist in the temporary organization of
an insurance company. On the way to
that city, he said. Clarence +. Birdseye
Informed him that he had been select
ed as vice-presiden, of the company,
and Birdseye read the minutes of a
directors meeting to be held the next
day, at which the sale Of the company
assets was authorized.
The following day he said, he at
/ tended the meeting. waiting in an ante
/ room with other dummy directors un-
/ I'll his name was called, and lie was in
! formed he had been elected 10 the
4 board He said he was then elected
Ivice-president and presided over the
meeting at which the sale Of the Wash
/ ington Life Building and the securi-
ties OF the Washington Life Company
D
voted. Previously he had been told
+ that tho sale had been authorized by
Mr.. Phillips
! Birdseye had told him the change was
/ authorized because the real estate, in
Guiding the St. James Building. which
WAS also TO have been sold 20 Thomas
[ A. Crawford. process server IN the
( Office Of Charles W. Bacon. 2oS Broad
way, were not yielding as much as the
/ Insurance Department thought neces-
I sary, and the Is per cent bonds OF the
Dare Lumber Company were 20 be sub
| stituted. This he said, according 70
/ McQuesten, was a company with So
coo, 900 in assets and immensely val
liable pulp contracts.
At the meeting McQuesten said
there were several representatives OF
/ Calvert & Thompson present. Nh. Cal
vert and Frank Ewing, general counsel
to the Pittsburgh Life. remained
through the sessions. lie said Calvert
assisted the elder Birdseye in running
the meeting according to the schedule
prepared the previous day. Calvert. he
was told. he said. really represented
mysterious New York interests that the
Birdseyes refused 10 disclose.
Miles VI. Dawson, an insurance act
uary, and Henry A Rubino. a policy
holder in the Pittsburg Life. were yes
terday selected to head a committee
of New York policy holders formed to
protect their interest A similar commit
tee has been formed in Pittsburgh
where most Of the policy holders reside
Harrisburg. Penn. May al. Denny
O'Neil. State Insurance Commissioner
tonight said that Clarence Birdseye,
charged with conspiracy to defraud the
Pittsburgh Life and Trust Company.
, had agreed 10 give himself up to the
authorities in Pittsburgh on Monday.
This promise. Mr.. O'Neil said. was
made i'm New York 20 Deputy Attorney
General Horace w Davis