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Show ANOTHER TANGLED FINANCIAL STORY ATTEMPT' MADE TO DEFRAUD WESTERN LIFE OF $200,000. I Loss Sustained Is Only $2,000, And Authorities of Cpoke Co. Will Conduct an Investigation. - Chicago, Jan. 15. The Chicago Tribune Tri-bune today prints the following news article: "Another tangled financial story involving in-volving the Western Life Indemnity company, has come to light and brought in its wake a promise of investigation in-vestigation by the authorities of Cook county. "According to the charges, which wiil be laid before State's Attorney Waymau, the life insurance company, j of which General George M. Moulton is president, narrowly escaped being defrauded through one of the most remarkable re-markable transactions on record. The company which stood to lose $200,000, finnllv wriggled out with a net loss of only ?2.000. "The direct violation of an order of United States Circuit Judge Kohl-saat Kohl-saat to restore $200,000 cash to tho treasury of the Western Life Indemnity Indem-nity company, these bonds, purporting to be $200,000 face value, were substl-I substl-I tuted. ' The bonds were issued by an ephemeral, ephe-meral, really an imaginary company, I which was not incorporated till after j the securities had been printed and delivered to the Insurance company, i The bonds were issued on a vacant lot' and an option on the lease hold I of an ancient office building, the option op-tion never being perfected. to the attention of Judge Kohlsaat, In contempt of whose order the acts i were, but the character of tho bonds eventually was discovered by out side parties and tho securities were taken ' from the Insurance company's treasury and replaced by cash under threats of exposure for the persons involved In the deal, "The 'bonds.' it is asserted, were dc-stroved dc-stroved immediately after the discovery discov-ery "of their character, but samples and photographs of the securities are in existence and will be submitted to, the state's attorney. "General Moulton aud his associates i:i the insurance company declare that they believe the bonds genuine and of face value aud that they wero innocent of any wrongful inteut In accepting them as cash, and placing them In the company's treasury. "The facts bearing on the transaction transac-tion are likely to come out in tho course of a hearing before Federal Master in Chancery Bishop. The at- torneys for tho insurance company were ordered to bring in their books next Monday and show tho court the expenditures Incident to the long drawn out litigation, one chapter of which closed last week with Judgo Kohlsaat's decree ordering Moulton, B F. Roscnfeld and W. H. Gray to restore re-store $200,000 to the company. The amount was Involved In another deal entirely separate from the bond affair. "Attorney Sol Lerlnson, representing represent-ing the complaluing policyholders in that litigation, announced beforo the master that it was his intention to inquire in-quire Into the circumstances surrounding sur-rounding the scheme to re-insure the WeBtern Indemnity in the security life and annuity company of Philadelphia. If this investigation is pursued it may disclose the details of the bond deal. "The Investigation to be pressed before be-fore State's Attorney Wayman will hn a different move inaugurated-brother-I interests." ' |