Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-04
DEAL CAUGHT
THOUSANDS IN CITY
Philadelphians, Widows and
Cripples, Hold Pittsburgh
Company Policies
PROBERS IN CONFERENCE

~ One thousand policy holders of the in
4 yolved Pittsburgh Life and Trust Company
reside in Philadelphia, aud these are likely
to lose every cent of their investment, ac-
cording to J. Denny ONeil, state Insurance
Commissioner
This became known today at conference
Of insurance officials of Pennsylvania and
New York in the office of Attorney General
Brown IN the Morris Building.
us O'Neil said after the conference that the
alleged specuations would exceed S.
y 100000
Tits the most gigantic insurance swinde
IN the history of the state" he said. ''rhe
men who have emptied the Golfers Of tho
company are worse than burglars
"A This afternoon O'Ncii left for Pittsburgh
and he will be followed tonirh, by Attorney
General Francis Skunk Brown and Deputy
Attorney General kun Deputy Attorney
General Davis left for New York tins after
noon According to O'Nel the purpose Of
the Attorney General visit to Pittsburgh
will he 10 call upon the former directors Of
the company in an effort 20 have them make
UP the alleged deficit Of S-o0o.0o'.
DUMMIES NOT REAL BENEFtrlNEIES
Il am confident" said O'NciL chat the
benefciaries of this gigantic swudle We
will hold conference Monday in Pitts
burgh and make arrangements TO go after
everybody high and low, WHO has had any
thing to do with this robbery. The method
of the dummy directors was To- take money
in blocks of 500 600 from tho treasury uf
the company and go ont on the market and
buy stocks and bonds and sell these SenG-
rites back TO the company ~ "A pI'. trN
times that paid for them In order 'u proc
pf such a zlJirlIp this
State IL is my purpose next week to 'utr1-
duce bill into the Legislature which will
compel insurance companies to obtain per- /
mission from the state Insurance Depart
ment before they can buy securities Sucn
law is in force in New York and other
States. An injunction was issued IN New
York this afternoon restraining clarence
Birdseye. alleged dummy director, from
touching any funds belonging to the conf |
pany. in banks and trust companies We /
understand that Brdseye has notified the |
District Attorney he will give himself up on I
Monday"
Other startling facts were brought forth !
at the conference, revealing the apparently |
shaky financial status OF the Pittsburgh !
Company. Tue capital OF the company has /
been virtually absorbed by alleged high !
hnanciering and stock iobbing" on the part !
of dummy directors for whom warrants ,
have been issued by District Attorney Swan. |
. OF New York 1t was also revealed that |
tfe surplus OF the company. which amounted |
to s2,OO0.0OO, has vanished and the reserve |
has been impaired to the extent Of
S3,000,000.
WIDOWS AND CRIPPLFS
The 1000 Philadelphia polcyholders in
cude PhladephianS of all walks Of life |
living in South Philadelphia, West Phila-
delpha North Philadelphia. Tacony and |
other sections These persons, who are
likely to lose their all in the COMPANY in
clllde widows. CrlnDlps and bg rI- NO
men and women. Some of them have been
po,icyhoders for twelve or fifteen years,
and they had the utmost faith in the COM
pany.
Prior to the conference this morning /
when j. Denny O'Neil State insurance COM
missioner, went to his office in the Com
mercial Trust Building, lie found Il stack
of mail from Philadelphia policyholders.
Many of these letters contained pathetic
appeals from men and women deeply wor-
ried over the situation.
Present at the conference We're J. Denny
O'Neil. State Insurance Commissioner; ".
B. Hadley, representing the superintendent
of the New York state insurance depart
ment; Attorney General Brown, Deputy At
torney Generals Kun and Davis; Il. T.
Foster an actuary in the Pennsylvania
State Insurance Department; Asa Wing
president of the Provident Life and Trust
Company, of Pennsylvania j. q. GLIB, of |
the Penn Mutual Life Insurance COMPANY !
and representative Of the Girard Life In
surance Company The insurance company |
officials were present to aid the State OIL /
cials in devsing some plan for the rehabil-
fation of the company, and the protection
Of the policyholders.
PROMINENT STOCKHOLDERS
O'Neil said it had been discovered that
the company had 74O stockholders many !
of them prominent socially and politically |
in the western part of the State
Asked whether any Philadelphiaus are
likely to become involved ONeiI replied;
81 cannot tell at this time, but il is GER
tain that the thing reaches nearly every
State in the Union and will hit hard at
several prominent groups of high fnan-
ciers. The company was organized years
ago by some of the biggest men Of Pitts
burgh men identified with big banks and
in large financial deals. The assets Of the
company. according to the records Of the
State Insurance Department published
January /, 1917. were $4,000 900.
"District Attorney Swami, Of New York,
Is today preparing to bring this matter to
the attention of the Grand Jury and viii
ask for the indictment of the seven dummy
directors for whom warrants have already
been issued. TheseIue have gone to other
States. 1t. is alleged that the company
turned over the sum Of $1,000 000 to the
dummy directors, and in return all the com
pany received was receipts