The daily morning journal and courier., 1899-05-24
MIR RETTS, STATEMENT


 The statement made by MT. Betts was
 as follows;
 The quadrennial examination of the Aetna Life Insurance company l began in October, 1895 This examination was in charge of William D. Whiting, con- sulting actuary, of New York city. In
 my report to the governor May Il, 1896, the following appears:
 | Tn making this examination ques- tion arises concerning the relation of i the mutual to the stock department and the transfer of paid-up policies from the former to the latter, as well as to some other matters
 T am advised by eminent counsel that the company has no right whatever to transfer these policies. The relations of the two departments are of such a char acter that it appears proper that the company transfer this diverted business back to the mutual department, and I have made the appropriate order with reference thereto. The company claims that it had and has a right to make these transfers, and contends that it has but one department; that the stockhold- CTS have a right to manage the mutual DuSlHtSS dS lllty htNiii pNStf anu ,iidt 'iip commissioner cannot interfere.
 Tn justice to the policy y-holders of the mutual department I deem it my duty to take such steps as may seem advisa- ble to have these questions finally ad iudicated."
 On March 4, 1896, I issued norder to the president and board of directors of the Aetna Life Insurance company or dering them to stop transferring poli- cies, etc., as appears in the insurance commissioner report to the governor May 4, 1897. The company requested the commissioner to give it hearing with reference to the order. The coun- sel of the Aetna Life Insurance com pany and counsel of the insurance com missioner met with the commissioner on several occasions and the matter was thoroughly argued by the counsel of the Aetna Life Insurance company and the commissioner decided that the order should stand, and on May 20 suit was brought against the company. From that date until April, 1898, the official reports of the insurance commissioner to the governor, issued May 4, 1897, and May 4, 1898, show the legal controversy ana the QeclSlOHS Ol tlIe Coul |. LII Apili, 1898, William D. Whiting, consulting actuary, of New York city, who had charge of the actuarial work, reported to myself and counsel that in order to prepare the case for trial he would need two expert actuaries to prepare neces- sary date, which would take them three or four months, at the least and would be very expensive.
 On April 20 I called on the governor and explained to him the situation and told him that my appropriation for le gal expenses was exhausted and that would like special appropriation from the board of control. The governor re- piled that so far as he was concerned l he could not see his way clear to grant ! any appropriation to continue this suit. | He afterwards expressed the same views | to my counsel Knowing the statute in | reference to the board of control, that | in order to have an appropriation it | must be with the unanimous consent l 1f the governor, treasurer and comp | roller, I realized that l could not ex- 1ect any help from that source. l also | wish to state that during this litigation
 endeavored to get old policy holders if the mutual department whom I be- ieved were vitally interested in this to take some action with ne, but l was unable to get any help II any way from these parties, not even .ble to procure the loan of their old | policies
 Previous to April 20 my counsel had l
 FH