New-York tribune., 1907-07-19
NEW LIFE PROBE DEEP.
after MUTUAL RESERVE,
Investigation Expected to Disclose
Startling Facts.

Superintendent Kelsey in his examination OF ths
Mutual Reserve. a Tribune reporter learned yes
terday. will violate precedent and investigate ths
company's affairs. in certain instances. from "a
far back at least as 1892
This means that the present exarinato win noe
only take cognizance Of the Armstrong Hughes re-
port but will many OF the conpany's affairs
in the Hendricks regime and in Mr.. Hsnd-icks's
last report OF the Mutual Reserve. Nj Kelsey
having been Insurance Superintendent only since
May. 1905
As told exclusively in yesterdays Tribune, Mr.
Kelsey new deputies-Hadley. Of Michigan and
Hughes. Of ConneCtiCUt-bega extaustiva ex-
animation of this company on Wednesday rhs
first examination in two years The first intina-
tious OF its scope however. were only forthcoming
when Mr.. Hadley began an examination Of tha
COmpany's legal reserve" business nom The tins
OF its inception in April, 1902
Incidentally. ever since IT'S inception the Legal
reserve business has been Handicapped By the ab-
sence OF any authoritative ruling 70 whether n
any circumstances legal reserve assets could 90
diverted into assessment policy channels. qIes-
tion OF great Importance 20 legal reserve policy
holders IN this company and one which has inter-
business Il Is expected that the Insurance.
departrent's report OF the present slarn.-arion
will help 10 determine this question. II IL 10 rot
decided in the mean time. as seems probable
Should the examiners probe deeply enough + Is
predicted also that they Will discover new evtdercs
that az least former high Official o: the Mutual
Reserve made unlocked for use OF a personal
OF funds thought to belong only 10 the COM
pany and It's policy holders Sch evidence Is aval'
able in this connection. ii is said as would warrans
the Insurance Departments recommendation thas
either Attorney General Jackson or the Mutual R9-
serve sue for the recovery OF the money.
This evidence. it IS declared. may also involve
directly or indirectly a who IS s-iN connected
with the company
Should the examiners find any new evidence %
criminal II is understood that the InSur~
auce Department Will turn IL over 10 District Al
torney Jerome
According TO close friends OF rchtbald C. Haynes
and George w Harper the rv< entity elected presi-
dent and president OF the company. these men
welcome the chance OF having the examination Oves
in the future. Mr. Haynes Il is said IS con-
Vinced that. while thus far he may have had 10
opportunity To consider perfect all the necessary
changes no disclosures can reflect materially on
his own tncUmbency, and that the company IS IN
trinsically sound
As for Mr.. Harper. formerly the companys
treasurer only, II is understood that he shares MS
chiefs views of the Company's stability and -
convinced that the HayneS-Harper ulanaser1en-
has nothing whatever 10 conceal With the Insur-
ance Departments seal on the conpany's stability
and the drastic changes planned IN actual elect
IL Is believed that the Mutual Reserve, under is
management. Will have promising future
Miles NJ Dawson, IL was learned yesterday, has
been retained by the company as consulting acV-
uary TO George u. Eldridge.