The sun., 1907-03-14

IlTe was Intensely acute. 1 nat MI Messy
was confronted not alone with the fire in
surance situation but with the difficult
tasks presented by the new law including
formulation and adoption OF O) stand.
ard forms Of policies, consolidating into
four the more than 800 forms there
tofore in use in this State, w OF addi-
tlonal standard forms, (3) OF the annual
financial statements and az also includ.
ing the elections in the mutual Insurance.
coutpanies.
THAT these unusual and novel problemt
required incessant inquiry and consultations
surance companies aud others, with the
law department Of the State, with the chair.
man OF the Armstrong COMMITTEES: in brief
complete supervision and final decision.
That the questions arising under the
new insurance company, elections were
out the method OF bllottRg for directors
the total entitled 10 vote Id the New York
and Mutual Life oompAniee alone being
about one and one-half millions Of people
and about thTee-quarters of a million people
having actually VOTED in thsss two CON-
That during On this time he work Of
the INSURANCE. Department, involving in
finite detail. bad TO be kept up[ That in
qIIiries both from within and without the
TO the neceessity OF properly cpnstruing
and administering the new law.
THAT Of the more than l6,oAo COM
Inunicatons sent out by Mr.. Kelsey. in
ten months the great majority required
the attention Of Mr.. Kelsey by reason Of
the fact that these communications In the
main were not routine. but concerned the
policy and rulings OF the Superintendent
in regard TO the new law and the fire in
surance situation.
THAT thus overwhelmed with problems
requiring attention, tact, deliberation and
NDn6fT1lCfiyQ aHnrfa Mr. KAlaav k0an
in his appreciation of the pressing cares
resulting from the San Francisco fire.
That Messrs. Hunter and Vanderpoel
were not only equipped with technical
knowledge. but through their long, &C
quaintance with the responsible heads OF
fire insurance companies and writer's and
editors Of fire insurance journals were
able to obtain reliable Information quickly
as to the condition Of the fire in
suranoe companies, to follow up this
rumor of a disquieting nature as to the
stability or solvency Of companies.
THAT formal and indiscriminate exami-
nation of FIRE insurance companies was not
practicable and would have led inevitably
to general distrlst and destroyed public
confidence in a business upon which $780,
100000 Of credits depended. That. under
all the circumstances, Messrs. Hunter and
Vanderpoel were peculiarly fitted for this
emergency in the fire insurance situation,
and It was not possible to obtain new men
who would have had the knowledge and
dition.
That Mr.. Kelsey was not unmindful OF
what was believed 20 be the public i'm
preston created by the investigation and
report Of the Armstrong committee. but
that it was his duty to take such course
as he believed was for the best interest
Of the State, and. indeed, Of the commercial
world OF the entire country. That he pre-
sented all Of the facts and the consequent
problems to Gov. Higgins, who concurred
with and approved of his plan TO temporarily
retain Messrs. Hunter and Vanderpoel
until about the first of the year 1907, when,
IL was hoped, these problems would be
solved
That his judgment has been proved wise
in the highest degree by the results at
company has gone into the hands Of a re-
ceiver. Only three and those compare
lively small companies, have ceased do
ing business. and that the fire insurance
business at large has remained stable. and
possible panic and disaster have been fully
averted.
That the highly difficult tasks of Sc
lecting four standard forms from among
over 800 existing prior to the new law, and
Of also selecting thirteen additional forms.
have been so ably performed that these
forms have not only failed to evoke criti-
sponsible quarters. That the same is true
Of the new and complicated forms OF annual
financial statements required from the life
insurance companies.
THAT the history of the Insurance De
partment since the incumbency of Mr..
Kelsey shows that he has contributed to
all Of these grave questions and problems
not merely close attention but constructive
work and discriminating judgment
That the final result challenges scrutiny.
THAT the sole reflection OF the Governor
Is that Mr.. Kelsey failed TO discharge inn
mediately two subordinates-a very small
matter in comparison with the whole
problem-but that in regard to this matter
he was in sympathy with the Governor
then in power, and that, as a matter OF
fact, his course in that regard was sound.
as shown by results.
THAT for the Senate 10 remove under
these circumstances would be to exercise
not judicial and carefully formed judg-
ment. but merely an arbitrary power.
That the exercise Of such a power would
affect not only Mr.. Kelsey but be a grave
menace TO the State. and set a precedent
whereby any Executive for whatever cause
could disgrace faithful officers whose tenure
was fixed by law,
THAT such policy would be wrong and
IL the heads Of great departments OF the
State, dealing with the business of the
State. are to be removed at the will of the
Executive, the law should so provide, but
as long as the law is as 1t is, then such
removal should be only upon grave cases
appealing to the conscience Of the Senators
sitting as judges.