New-York tribune., 1907-07-18
SUPT. KELSEY ACTS.
AFTER MUTUAL RESERVE.
Institutes ErhGustiUe Investigation
Of Insurance Company.

Acting under instructions from Superintendent
Kelsey. Deputies Hadey. Of Michigan, and Hughes.
Of Connecticut, began yesterday what promises to
be exhaustive investigation of the Mutual Re
II is understood that the investigation will
last anywhere from to six months. that II viii
occupy the attention of the bulk of the State In
suranCe Departments staff of life insurance exam
iners. actIares and other experts, and will cover
the entire financial status Of this much discussed
company.
1t is believed that the present examination will
decide and for all the seemingly veXed ques-
tion OF the Mutual Reserves soundness, although
the company's officials all along have been en-
phatic in their declarations Of the company in
trnsic stability In view of the still critical insur-
situation a Albany of the recent crowded
happenings in this company, and of the fact that
ex-President Burnham and Actuary Eldridge are
under Indictment for larceny and forgery, tho
news of the examination caused great interest in
insurance circles last night 1t also caused some
perpleXity.
y told exclusively in The Tribune of April T. two
examiners from the State Insurance Department,
with forewarring. arrived tho company's Of
fees on the Thursday preceding that date and an
nounCed that they had come TO overhaul the COM
pany's books. The examiners arrival followed the
deferred filing OF the Company's annual report. APP
parently the two men, far could he learned
YESTERDAY examined then only the unpaid losses
item in the company's report remaining at the
Mutual Reserves offices for two or three weeks
The unusual reticenCe of the cOmpany's officers
when Tribune reporter sought informant ton YeseT-
day as TO details OF the investigators lent color 10
the rumor that the examiners report on the "un-
paid bosses feature had led TO the present exam
inatton. According to the Companys official view.
howeN er, this is merely of the trienniaI cX-
amnations provided for under the new law, the
Mutual Reserve being examined at this time purely
by chance and TO relieve the congestion which any
attempt at simultaneous examinations OF many
companies would engonder.
The April incident excepted, this Is the first eX-
animation of the Mutual Reserve for about two
years, that is since before the Armstrong Hughes
investigation, with its sequel in the conviction of
George \. Burnham jr. (snce reversod, the IN
dictment Of F. A Burnham and q. d. EdridEe
and the recent supersession of President
Burnham by Archibald {. Haynes. lnaSmuch,
especially. Mr. Hughes. the inquisitor, since his
election Governor has received many sugges-
tions that the Mutual Reserve examined. certain
insurance interests in the examination
Governor HuEhes's second insurance move since he
took ofioe Others however see in II another at
tempt by Superintendent Kelsey TO viudicate his
department.
Indications that the present examination will be
far from a formal affair forthcoming, seem
ingly from the fact that instead Of two there will
be probably ten experts engaged in IT, in charge Of
the deputies appointed week or two ago
by Mr.. Kelsey ana whose appointment met with
general approval
The Mutual Reserve scarcely appeared in an en-
win ble light under Mr. FInghes.s gruaung cross
diCtment Of the three officers. ex-oftiCcrs. in
March. 1905. based allegations that these
men had paid personal judgments against them
with the companys funds.
AS for President Haynes who only assumed Of
flee on May 22-less than two months ago-lt IS said
that he personally views the examination "ith en-
tire equanimity. confident in the company's in
triusic soundness and in the knowledge that al
ready he has executed or planned economies 10 the
tune Of nearly $4,000 a year. and. possibly more
important still. has announced that hereafter the
Mutual Reserve purposes TO pay It's death claims
and virtually 20 chloroform It's investigation de-
partment
Tho Mutual Reserves admitted assets a; the
close OF 1906 according to It's report amounted 20
S4ss2.33l. and the surplus increased $32 500
in that year. On December 81. 1906. however. the
Mutual Reserve showed a relative loss of than
si700000o in the amount OF insurance In force that
year with total OF $77.I54 S36 insurance IN force
on that date.