New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-26
NEW-JERSEY LEGISLATURE.
THE KELSEY INVESTIGATION.

THE kEI.SEI IN V EollOAlION
CONCLUSION OF THE TESTIMONIAL MAJORITY RE-
PORT FAVORABLE TO MR.. KELSEY EXPECTED.
TRENTON, Feb. 25.-The special committee
investigating the official conduct OF Secretary Kelsey
concluded its labors this evening. The tet timony and
naners in the case will be printed and with the report
viii be presented to the Legislature on Monday night or
Tuesday OF next week. 1t expected that the majority
report will Mr. Kelsey from all the charges
10 the examination, to-day, Mr. Kelsey proposed 70 ask
certain questions Of Asseinblyman Harris' u
member OF the committee and author OF
tho resolution calling for the investigation DIT.
Harris insisted that he should not DO considered
"A the prosecutor of Mr. Kelsey and said that Mr. KEEL
sey had no standing before the committee except wha
tho committee chose to give him. Mr. Kelsey testified I'D
answer TO questions from Mr. Harris that he teiegaphed
Senators Kirk Hobart and Moore that 1t would be ds
graceful for Legislature to send committee 70 New"
York TO take the testimony Of fugitive. In answer 10
question how he knew the testimony OF iusit'e was
sought Mr. Kelsey replied that he judged so from Judge
Fuertos letter asking for the committee TO come 10
New-York az Judge Fullerton is Mr. Baldwins counsel
John Y. Foster testified that he had had coh'ers"n
with Mr. Kelsey about IL 900 dollar cbecA receiver W
Chancery Clerk Little from the NewJersey MUTUAL hie
Insurance Company that Mr.. Kelsey SAID no hao See
such statement IN a New-York paper and asked MI.
Little what it meant that Mr.. Little replied no received
certain counsel fees and that Mr. Kelsey said ne
told Mr. Little the answer not entirely satisfactory
Henry s. Little Clerk i'll Chancery, testified that no re-
ceiyed from President Stedwell. OF the NewJersey
Mutual Life, cneck for 81 0O0 which was To pay Ior
legal opinion questions growing out OF reinsurance by
the New-Jersey Mutual. That was his only employ
ment nothing was said TO MIN ABOUT eAeroishS H'' IA
lueuce Oh Mr. Kelsey.
Mr. Kelsey again desired to place Assemblyman
Harris on the stand. Mr.. Harris declined and said ne
would not lower his official position so much as 10
answer the questions he not Mr. Kelseys prose
cutor Mr. kelsey then addressed the committee, ana
said wanted it the record that he asked the
mover OF the resolution calling for the lh'esu3a-
ton to 20 on the stand and tell all he knew
about the matter under investigation, ana
that he declined to do so. Mr.. Kelsey tDen
read letters from Messrs John j. Anderson ana Dahel
j. Noycs, denying the printed statement ttt tGI , ne
80 900 10 - 900 for the examination OF Insurance
companies. lie also read aihdays rom the same re-
iterng the contents OF their letters Mr heSey ue
sired that these papers be entered as part OF the reco
Mr. Harris denied tina: lie had said Messrs. Anderson
and Moves told him Mr.. KELSEY received from $1,000 70
$4,000 for examining eacn company. re su ~ 400 ~
eraphes notes would show that nc .ad nom %oVU ~
- had been eyactCd. He desired that MessIs Noyes
and Anderson be subp9nacd. a..
orrrations OF tho New-Jcrscy Mutual Life Insurance
Company was that Wednesday Of James H. Cannln.
formerly cashier ot that company LIS testimony Mas
In several important pdrcu ara, dICct CONTRADICTION
tnre lie fSs,ti,d SUBSTANTIALLY that during the
examination o that company In 1874 condi ted py sec
Commissioner OF helstF'
he was present that he handed j. II. sued Well then
resident OF the COMPANY, $500 ia bills, which was paid
hy NJ. Sicdwpl 10 william McMIchlcl, one OF the ex,
anincrs appointed by Mr. Kelsey. IN the assets passed
by the examiners at that tine was the i'e OF ollis
rrcr, able S27JO3 81, which the examiners ana not
examine or have IN their hands The company at that
time hal this amount bills receivable bat they were
not good All Tie notes policies were carried llO hs
ffru Of bills receivable, bat all OF tile notes
were upon policies il force The examiners uid nor
examine the policy registers o The COMPANY III tnc tA'
,,u,I> had rxal ned the notes and then examined TIE
pucy register OF the company, they wpuid nave asccr-
famed The ct that very large amount Of tntse nocs
were worthless because the policies upon whch they
were given iapsed The examiners ala hOC exam
inc the books the company had the SlsS257 90
Of outstanding and deferred premiums, as lc-
ported. In the item OF mortgaxes-Sloo,,
passed were not even assigned TO the company
nj the time passed them the property
Of the company. Of these ortgages, winch were
pa 4el b. examiners of MI Kelsey were hIcTWali
or 10 profit and loss, owing to the fact that hcy
we're V.lueles supposed 10 De ydueless During the
examination ~ 1874, made by MI Relseys examiners
10 ascertain whether any Other Liabilities existed
IN addition 10 the items Of "calms,' "cipihi,
and Preserve" II Mr.. Kclseys examiners had
examined the books ut this time, the BOOKS
would nave shown that other liabilities u the amount O
from $4,000 80 $4,000 existed in addition 70 tr
items claims capital AID reserve. After Mr. helseNs
eXamu, = had pace" upon Iae1 'ne as't , Inc '',
Tie. ~ tile company their brauce tEct showed L
cheney on the part OF company, and one Of the exam
lnrrs chen asked thr president the question: cannot you
else tlI, words 10 tnal
effect An item ~ asset, then adeu under the head
of agents balances 10 show the company 10 be solvent
and when t!s item lad been added IL showed The coL-
plny to have surplus "u paper 81 "uy Tl''o? 20 M.
ci~y under date OF October T. 1874, wiOic lrttCr 10
Ar b. ukero the secretary OF TIE company, saying that
the examiners had faithfully carried ont his ln>rur-
tons: that the result entirely satisfactory 10 hm
ANA hat tie company was shown DE- IN sound and
healthy condition.