The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-02-04
MR.. HENRY C. KELSEY'S CASE.
4N INyESTiG fTION THAT rs DEyELOP-
ING UNPLEASANT FfCTs.

IN INDESTIG fTION IHlT fS DEVEIOP-
ING UNPLEASANT FfCTs.
-
An rn."rance superintendent Accused OF Per-
m"t'nr " Friend to Take E.torticn"te
e'' """"' ,"A'"s money '''" '"e f''e""'
TRENTON, Feb. 3.-The joint committee ap-
pointed by the New Jersey Legislature to in
vcstigWtc charges made against Henry c. kcl-
sey. secretary OF State, alleging improprietes
in his conduct ns ex officio Commissioner of
Insurance. have held numerous sessions in the
last two weeks. II is said that some damaging
disclosures haye resulted The frat witnesses
.allad rranL T. po,,.rson ,Ji,or -, ,h, ~,
'"'e", ii"nN a''Vrsuh' cu''or vi thc NcW-
ARK cOWtT' ana .. a. Beccher, OF the ESser
Kolso,,s c,,dno, ,o,,..x, a., ", -. ,t,,,,,a,
s'onuuV' .oN"iu '"c Now ''rsV' "u'u"i
llic insurance company oil Newark, whose
condition he cp prt fled to be sound md hrnlthv"
L. o,,n,1. ,s-, a., ..,,t,. i ,.',t,..,,
hoc'"per' lo'f anu hgains' whlch ne instituted
proceedings in December. 1876 which resulted
in declaring tho co,,nnrv i,solvep, and 4, tho
,oir,n,a,,, -, t,l .i.'.s s
appointment vi ooci hrhcr "s recolNcr'h renru-
airy. 1877. These papers charged Secretary Kel-
sey with criminal complicity in the first certin-
cate with having taken illegal fecs therefor
and with having been melted to his final
action In tho ma,,.r bv IA. Nu,u,l
m. - -, ' n, u,u"
behcHt company OF newark. MT. helscy
laid complaint against the editors be-
fore the Tssex county Grand Jurv which
80 '""' Ninu ou''' "",'"
ia'led TO hnd indictments. ho then went be-
fore the Grand Jury in Sussex county. where
Il. l,v.s onJ ,har. ,h., ,,r', ,,o,,l ,,,,,,,,,
'''Vs' ""' ,"'ie NV "oiV inu,V'eu pi"i'puS'
On the day when they were summoned to APP
,,r ho,,ro ,hn ,,.,,,,a,f,,. ,,,,,s,,,. y,
Ic'i "'ivI" INC lhNesushtlhs comhiitee III
Trenton. Henry $. Little. clerk OF the Court of
Chanrnrv procured their Indictment for libel
bv IN. Nerrcr oo,,,,,, Cirani Inr,' ais, a,i in
~ Wv .N''-i '"""', Ni""u 'ui' "i9o' anu ia
stead ot appearing before the committee. they
had to busy themselves in finding bail. They
b,1 .,or,l A. I i,,l, ,.,,. - - i,,i,,,,,
.'" ,""'H'" -"'' i.'''e' VINO 10 "n ih'i'nNc
friend Of secretary Kelsey. with taking bribe
from the officers OF the New jersey MUTUAL
III" oh"lp them To another clean biil oi hcalth.
Very early in the Investigation 1t became APP
parent that the majority Of The committee was
on ra s"na"r q MoSrc t6e chrmnn s @ wS sousRi wi
advice from time TO time in Mr. kclsey's room.
! clerk. \ strno.rnpher was subsequently en-
| plovrd tut the clerk is still retained for whom
| there Is no apparent use Mt Kriscy's critics
| say unless il Irto give him the points Of the
| Investigation. which : held with closed doors.
| Patterson and Beecher rsutflrmcd before the
committee thDir belief in thn truth 81 the
charges against Mr.. Kelsey. and hanloI in a
| nst Of witnesses 10 b, cn(l.d Ia sibstnniint,,
| them
! Ex-Gov. Parker testified thnt a check drawn
| by the President Of the drfun t insurance com.
! pany in favor ~ Henry :. Little and endorsed
! hy him. had come into his hands ns ta,.l,.r
| which chrck h. rNhibit.d To the coininttac
! {. n. BrinkcrhuN who was the SECRETARY Of the
| New Jersey Mutual ,e'inei Tint This rhrrE was
paid IL Mr. Litil. a. influence a iaNornhle report
/ bN The Comm l--fp az lu.uruu.sa ltn
! company'- condition. Mr. Lltt,. who was Il
| pfurfi-in., LAWYER before his nrnni ntu.,nt "a
Clerk of Chancery. claims that the 81 900 was
| paid him Tor legal u,lyice
| Il was furth.r proved that the New Jersey Nu-
tuu had paid $500 I, William T. NcNichne
/ vino wis unnoi ntrd hv S.rrrtary kelsav ~ ~,
anime its affairs IN 1874 as the result OF which
rNnmin4lion he gay, the lattrring certificate
the company's assets was an extensive tract OF
barren land in Union county. which was esti-
mated on the basis Of city lots at a fancy price.
t,,t
that other securities which were passed nt this
examination were scarcely less fraudulent
Si,s Il. Merchant the President oi the Mcr-
chants Insurance Company nf Newark tr.ti.
| He'd that Mr.. kelsey hal employed Joseph
! Coult. a lawyer. now OF Newark. hut who was
| formerly "A r-sid"nt II SusssN Mr. krlnny !.
| county t. rximInr Tho tssots OF Tho W.r,nmn,s'
and ordered the COMPANY to pay him s. mort
gage although rrpuianle LAWYERS had offered
= DO tho work Tor 30 cents a mortgage. Mr..
Baker. II the Flr"men's Insurance Company
oi Newark. said that they also had been charged
- mortgage, and the bill brought against
,hrm, Tor ihe eNnmlhatlon wis about $500.
Mr. Horne. of the tirrmania sad that they had
b.rn charged Tor examiners fees 81 400.
although they had only about eighty mortgages
70 examine. Judge Meeks Of Newark. "a we'll
known examiner. testified that he had person
ally offered to Mr.. Kelsey to examine the assets
pi the companies for 81 "A mortgage. for which
Mr. Kelsey aii"rwhrd employed Mr. Cout al s.
mortgage. II appeared that Mr. Coult paid u
part oi the money To MIR. Kelsey, but in explains
tioh II was -tid that II was IN payment OF an oil
delt whl'h Mr. Coui owed him while they were
bvth residents oi sussex
Various 1ioris have been made by those in
iaV3ro an hon,'s INVESTIGATION To- have the doors
but IN vain. ana a consignment II whitewaeh is
expected from the committee this week. II Is
sald ina! ihe brush would have been applied
sislance If Assemblypen Cooper OF Morris and
hhrfl- 81 hulsoh VINO threatened 70 make u
minority report II any Indecent haste was
shown 10 finish the Job. Mr.. Cooper. whose
,ri.n ~ NJ " i,o % ,v,,b n ,l "iopiUanvu iop ~ ~ a