Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-08-06

commenced business in 1905 with capi.
tai stock Of $1,000 It transacted
business in New York, Pennsylvania
and several other states. The president
Scranton. Pa, f5kmerly of Buffalo |:
Charles Diebold, Jr.. of Buffalo. first
vice president; Harry Houck, second
vice president; ]. Russell Jones, secre-
tnry, and n. T. Boland, of Scranton,
Pa, treasurer.
Clarence G. Fowler, chief of the
liquidation bureau, insurance depart
ment, OF 20S Broadway, New York city,
was designated special deputy superin
tendent of insurance for the liQuida-
ton.
THE liquidation order provides that
all liabilities on outstanding policies
shall terminate on August IA, 1919, and
policyholders will have no insurance
protection after that date.
This Is the second large liquidation
to take place in Erie county recently. as
Mr.. Fowler has been here for the last
three months conducting the liquidation
of the Polish Union of America, unin-
corporated. formerly located at 781 -65
fillmore avenue"
Bankers here say it was unlikely
the insurance company would have de-
posted such large sums in the North
Penn unless some one exercised the
privilege of borrowing from the insti-
tuition. Whether the men of the in
surance concern made big loans from
the bank and are included now on
the list of debtors in the hands of
the Banking Department is one impor-
tant phase of the failure not yet de-
relopcd.
Examination Made
Superintendent Phillips started an
examination of the affairs of the Buf.
falo concern shortly after the North
Penn Bank failure.
Frantic efforts were made to helm the
company out of it's troubles, All at
tempts to replace the deposits failed,
and the officers of the bank and the
insurance company were found to be
allied. under complicated conditions.
Speculation in the case now deals
chiefly as to who was responsible for
the placing of the money of the New
York corporation in the Philadelphia
bank and rs to whether the additional
arrests will involve those who may have
been the cause of the insurance com
pany's difficulties. The embarrassment
Of this company was concealed with
extraordinar ycare.
Crook" is Blamed"
A man with notorious record is
connected with the insurance company
as an official, according to Banking
Commissioner Fisher. Mr.. Fisher said
he could not remember his name, but
that he recalled him as "A ''crook." This
man, Mr.. Fisher believes. victimized the
bank by definite connection which he
established between it and the insur-
ancc company.
Colonel Fred Taylor Pusey, chief
Investigator in the North Penn Bank
wreck, said he had known for some
time that the New York National In
surance Company was involved in the
crash for n large amount.
81 could not divulgc this fact, how
ever" said Colonel Pusey. because
of another phase connected with this
affair.""
"What phase is this?" he was asked
81 cannot say now. All these mat
tcrs will be brought out in due time
in the course of the investigation, he
replied.
"Are any other companies outside OF
Philadelphia or Pennsylvania. insurance
or other concerns, invoved?' was the
, next question.
81 don't care to answer that at this
time said Colonel Pusey.
THE connection between the bank
and the insurance company is suspicious
if true said Philip A. Cameron
deputy bank commissioner. AS soon as
they were told of the collapse of the
New York corporation. Mr.. Cameron
and Commissioner Fisher conferred In
tn" latt"r's room in the Bellevue Strat
ford. Both seemed excited by the news
of the liQuidation
/ The company was organized in 1905
with capitalization of 5000, 900. It's
president is James J. Boland. of Scran-
ton. former resident of Buffalo. y. T.
Roland, also of Scranton, is treasurer
of the company.