Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-10-17
GOVERNOR ACTS ON LEDGER'S
INSURANCE FRAUD EXPOSURE
osntlnsed IRON Pase On.

lantinued from Paee One
had been the subsequent fate Of the rejected
policies
Mr. coyls was said. at his offices to be
out OF town.
Robert NJ. Coyle Is fifty-seven years Old
He entered the Towne Scientific School OF
the University OF Pennsylvania with the
class Of 1881. but left before GRADUATE
70 enter the importing business, in which
he remained until 1883. when he began the
fire Insurance business with his father.
James Huston Coyle. on his fathers death,
In 1892, he succeeded TO the control Of the
hrm He is chairman of the Fire Insur-
ance Underwriters Association. member
Of the British Fire Prevention Committee.
and Identified with many local and national
Insurance organizations He Is member
Of the Union League. the University, the
Hamilton. Belmont Cricket, Philadelphia
Cricket and Bachelors Barge Clubs
Edward Augustus Woods. of Pittsburgh
r. now fifty-two years old. He is a grad
uate of the Western University Of Pennsyl-
vania and entered the insurance business
as an Office boy. He became connected
with the quitabe Life Assurance Society
In 1880, and in 1890 became its district
manager for Pittsburgh. In 1911, he In
corporated the Edward A. Woods Agency,
20 handle that companys business. He l.
a director in the Union Savings Bank Of
Pittsburgh the National Union Fire In
eurance Company, and the Western Ma
tional Bank. He Is member OF the
DuQueSne, Union, BlttSDuTEn country anu
Edgeworth Clubs. the Pittsburgh Athletic
Association and the Lawyers Club Of New
York He is regarded as an international
authority on insurance matters, ana Is
prolific writer on the subject
In an interview published in the EVENING
LEDGER on November 81 last Governor
Brumbaugh declared that he intended y"
recommend TO the Legislature that tnsur
ance laws be enacted which would meet the
present needs OF the situation laid bare by
the Pension Mutual scandal
EXPOSED BY EVENING LEDGER
The insurance scandal had been exposed
several weeks previously by the EVENING
LEDGER. and on November g, 1915, lnsur-
Ance Commissioner J, Denny ONell IN
stituted receivsrShip proceedings against
the company. which was a Pittsburgh cor
poration. on the following day arplica.
tion was made through Attorney General
Francis Skunk Brown for decree OF as
solution before the Dauphn County Court
The hearings on Commissioner ONciIs
petition began on December lS
on December 10 Judges McCarreil and
KunkeL in the naUphn County Common
Pleas Court, appointed Commissioner Neu
receiver for the company, while the Federal
Court in Pittsburgh. named Joseph Ii.
Thompson also receiver for the company
Commissioner O'Neu was also appointed re-
eeiver for the Union Casualty Company by
the Tauphn County Court while Samuel
W. Cooper was appointed receiver ny the
Federal Court in Philadelphia. The pau
phin County Court held that the Federal
Courts had no Jurisdiction Both the Pen
sion Mutual and the Union Casualty were
controlled by the Consolidated Investment
Company Of which Lyndon u. Wood was
the dominating power.
Wood once a humble insurance solicitor
dreamed Of himself as the head of giant
company in which were to be consolidated
eeventy-eight insurance companies. In 1914
he launched his spectacular campaign by
reorganizing the Pension Mutual whicf
had as the bulk Of his po.icyhoderS Phila'
delphia letter carriers and postoiice clerks
as well as many policemen The company
Il was said was made the football Of high
finance"
PLANNED BIG THINGS
Back of the troubles Of the company was
n scheme by which II was expected. through
the possession OF the assets OF the Pension
Mutual and the gullibity Of too-credu
ious public assisted ny political schemers
20 lay hold OF the treasures OF some sixty
or eighty other life insurance companies.
The company was incorporated in 1861
and little was known of II until its reor-
ganIzation in 1912 by Wood, who was then
president and well-known in New York
Philadelphia and Pittsburgh. In the report
on he in the Insurance. Department at
Harrisburg for the year ending December
81, 1915 the gr ss assets of the company
we're shown sl.42l3s2.14 and the net as
sets $l.34T,452.55
year previously the company had beer
under suspicion, Chief Insurance Exam
liner William J. Rooney having made ar
examination. His report indicated that the
department suspected that the bonds which
the company held did not belong to the
company.
Wood, said Commissioner oNeil later
paid himself $4,000 year salary from
the Pension Mutual and $1,000 from the
Union Casualty Certainly no one would
accuse Wood OF being piker' said Com
missioner oNeil.
The probe which was asked by the In.
surance Department in 1914 was stopped
by John c. Bell. then Attorney General
Commissioner ONeil later alleged that At
torney General Bell received $500 yearly
as a retainer from the Union Casualty
Company. Mr.. Bell retorted that he was
retained by the company only after his
term Attorney General had expired He
had received about $4,000 he said not
1880. for professional services and con-
sdered the money we'll earned,
The Pension Mutual scandal brought tc
light the relations between that company
and the Police Beneficial Association OF
Philadelphia. whereby Seth H Whiteley
''the mysterious phlanthrop'st," an in
surance broker, paid the premiums on the
lives OF 1900 policemen in this city, giving
the Police Beneficial Association 800 fol
each policeman who died and finally col
lecting the death claims himself He re.
eeived nearly $4,000 in commissions
through the group insurance plan. Wood
charged Whiteley. John J. McCay and
Hiram Horter. Jr., secretary and treasurer
OF the Police Beneficial Association, will
q conspiracy 10 defraud the Pension Mutual
In January Of this year Commissions
O'Neil Issued a statement asserting tina
the Pension Mutual and the three fraterna
societies closely allied with 1.-THE Pen
siou Life Society, the order Of Unity anC
the American Life and Annuity Company
were insolvent to the extent of nearl!
31,s00,000 the three fraternal organiza
tions being insolvent to the extent o
100000.
Plans for liqudating their affairs wer
discussed. 1t was suggested that the Phila
delphia Life Insurance Company shOult
send out letters CT assumption. taking owe
ali policies of the Pension Mutual withou