Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-02-19
Gov. Hughes Talks to h.
surance Supt. Kelsey.
Asks Why Certain Conditions
Exist IN His Department
And Why He Has Done Nothing to
Correct Them.

Albany, n. Y, Feb. 1S.-For over two
hours today Gov. Hughes examined
Supt. Otton Kelsey of the state insur-
ance department as to his acquaint-
ance with the revelations made before
the insurance investigating committee,
regarding abuses in the life insurance
business; as to his reasons for retain
ing in the department officials and en-
ployes whose conduct was brought in
question during that investigation as
to his appreciation of the need OF
drastic house cleaning" in the de-
partment, ana as to his preparations
for the election of directors of the
Mutual Life Insurance Co.
Supt. Kelsey admitted that he had
never made a thorough study of the
report of the Armstrong committee,
reading it only occasionally as specific
matters made particular portions of it
of timely interest, although he said
that at one time and another he be-
lieved he had read it ALL
He admitted that he had removed
no one from his department as a re-
suit of the legislative investigation, al
though he intended eventually to dis
pense with the services of First Depu-
ty Supt. Robert Hunter of Poughkeep-
sic and Chief Examiner Isaac Wander
pool Of Albany, when the work of the
department was in such shape as to
make 1T, in his judgment, practicable
to spare them. Mr.. Vanderpool re-
signed few weeks ago. but it ap-
peared that, aside from his resignation
ana those of three minor employees.
the personnel of the department is
pract1cally the same as when Mr. KEEL
sey assumed Office last May.
Mr.. Kelsey admitted that he had
never examined the roster Of his de-
partment in the light Of revelations
before the Armstrong committee as to
the Affiliations Of certain employees
with officials of insurance companies.
who We're involved in the insurance
exposures
Supt. Kelsey admitted that rot unti,
two days before the election of direc-
tors IN the Mutual companies last De-
cember. did he appoint the inspectors
VINO were to have charge Of the cleo
ton and that he finally left to n firr, of
expert accountants engaged COR the
purpose the details of the plan under
which the votes were to be received
and canVassed. He had prepared no
plan of his own, he said
In the course OF his answers to the
governors questions, Mr. Kelsey de-
cjarel that while he realized that
Messrs. Hunter and Vanderpool were
discredited by the insurance investipa-
ton intended to dispense with their SER
vices i'll due time when conditions per-
mitted. but without the humiliation of
summary dismissal.
Supt. Kelsey also emphasized the i'm
merse amount of detail work imposed
upon him under the new law the pres
sure Of which. he said. made it impossi-
BILE for him sooner to get at the reor-
ganization of his department.
AT the close of the examination Gov.
Hughes told Mr.. Kelsey that he would
be pleased to receive any additional
statement of facts which would show
his idea of any attitude toward the
work and needs of the department or
his action upon the various weighty
matters upon which the investigation
haG thrown light. The governor said he
did not want an argument. He merely
desired to get at the facts in the mat
ter and he said: $50 much has appeared
in the public press regarding the mat
ter and your letter was published this
morning and the subject is regarded as
one of SO much public concern that it
seemed to me most desirable that we
should get at the facts and put them
beyond the possibility of dispute
The examination of the Superintend-
tnt of insurance was conducted across
the governors big desk in the executive
chamber Mr.. Kelsey sitting at one
side facing his queStiOner. The fact
that the governor had summoned the
superintendent OF insurance became
known about the capitol dun ing the day
and many heads OF departments, depu
ties and employees and members of the
Legislature We're among the audience
which crowded the chamber.
Gov. Hughes said tonight that he
could not tell definitely whether the
matter would be ready to submit to the
Senate tomorrow.