New-York tribune., 1907-11-03
BANKS RULE PROVIDENT
TO NAME n NEW BO4RD
Thomases To Be Eliminated from
Insurance Business.

Working in their own interests as ou 10
that of the stockholders of the Provident 1jfo
Assurance Society. the half a dozen or more
banks which hold almost all the stock of that
company as eohateral for loans made to e R.
and o. F. Thomas will take up on wednesda, !,
the question of naming a board of directors 70
manage the company. One of these directors
Will be made president, some man who is thor
oughly familiar with the insurance business and
can devote his entire time to it, Timothy
Woodruff representing the stockholders will
take part In these negotiations
Edward Lauterbach, who has acted as counsel
for the Thomases in the dispute arising over
their inability 10 deliver the stock of the com
pany to the Philadelphia syndicate which mr.
chased H. SAID yesterday that his clients would
not remain IN the insurance business in env
way Although practically they still own the
stock. they will surrender to the banks bo,di,o,
It for loans the proxies, giving the banks actual
control
The loans are call loans and the banks could
II they wished, sell the stock If the Thomases
should fail to take up the loans But an adiust :
ment will be arranged whereby the stock will,
go to the banks. How long they will keen #
cannot De SAID, but they are not likely to sell
1t IN the present site Of the money market
= 1erDert Wolfe consulting actuary. of No
81 Nassau street, who has been retained nv tho
Colorado
and New York TO investigate the affairs Of tho
Provident Life. said yesterday:
THE insurance departments are NOT ,r+oro..,,
In the personality of stockholders Their solo
concern Is 10 determine whether the interests Of
the pohcyholders are being properly conserved
The proposed change in ownership will NOT oefo,+
the plan or scope Of the investigation in Tho
slightest degree Whatever lines of tnouir, +to
New York and Colorado departments have
hhappsu ouI ior themselves Will be vigorously
continued. -'''
II Il should be found that the policy
holders have suffered in any way STONE MI,
be taken by E. E Rittenhouse. Insurance c..
missioner OF Colorado, and by Superintendent
Kelsey Of the Insurance Department Of No,
YORK 10 do ali in their official power N 600
that the wrongs are righted"
The transactions OF the controlling factors n
The Provident Life for nearly a year are under
investigation. Among other things it has been
learned that IN January and February of this
year, not long after the Thomases obtained CON-
trol about 100000 worth of gilt edge securities
Of the company was sold. II is understood that
some, If not ali, Of this money was deposited in
banks with which the Thonas-Heinze corobina-
ton had affiliations. and from which they were
In the habit Of obtaining loans, it is said.
AS soon as Mr.. Wolfe. who is a policyholder
of the Provident Life heard Of the Dronosad
sale OF stock 10 Philadelphia capitalists he
wrote 10 Superintendent Kelsey, asking that an
examination be made. He had previously corre-
Hponded with Commissioner Rittenhouse who
came East and asked Mr.. Wolfe, as his repre-
sentative, 10 put examiners at work on The
books OF the company.
preliminary examination. started on Oc-
tober ii, brought forth report that a thorough
examination ought TO be made In such an ex-
animation the insurance departments of Col
orado and New York joined. on October q, the
Gay the Investigation was started Mr. Wolfe
strongly recommended that the company lose TO
time in taking some $4,000 Of the funds Of The
company out Of certain banks. This advice
was accepted. The following day some banks
were in difficulties
The examiners Of Mr.. Wolfe. as well as Nelson
B Hadley. OF the chief examiners of the
New York State Department, are still hard at
work on the books of the Provident Life, and
their report will not be ready for a week or two
The details Of the agreement whereby the sale
OF the stock Of the company TO the Philadelphia
syndicate is 10 be rescinded and the latter are
10 get their notes and money back will be ar
ranged Monday Wednesday.