New-York tribune., 1907-10-26
LOANS BY MUTUAL LIFE
Insurance COmpany's General So
LcitOr AnSUers Criticisms.

The following letter has been written to the State
superintendent of Insurance by ex-Judge James
NdcAeen' general solicitor of the Mutual Life In
SuTahce Company, regarding recent testimony con-
SeIIiHs certain loans made by the Mutual given
al albany before Matthew c. Fleming special
commissioner appointed by Governor Hughes to
investigate the Insurance Department:
OTTO Kelsey. Superintendent OF Insurance, Albany.
explanation 10 certain loans made by this com
Pany during the present year which appear to
been n;,t ~ II certain questions Purporting to have
We have furnished Nj, Fleming, pursuant to his
4i dT4Iiesl' lists Of the loans made by the company
to to urge Mr Fleming. IN the event that there ap-
suggested any criticism, to ask for an explana-
fiI pei0ge Lnakns them subject Of attack and
StH1iid a M ieI mad reason 10 suppose this course
nata6 have a. not s seen MI Fleming since this exam
mC6 ex1eriany o rihtDany t3ok place and have had TOO
p4ohcatlon to hold him responsible for the meth
papers. The various reports. however. corroborate
eat eaen other in making it appear that in
sumed, or at least intinated that several Of the
or Illegal and that the facts about them 6usht G to
fIIrt r0i,le TO your knowledge and there IS the
III IN mol ascertaning these facts and in not taking
sure Won that o., SHDJeHI, Deg ~, dS-
yyhatevar am uIitble 70 discover any Jhng
timatio4s n 6n any such assumptions or in
II is quite true that several loans amounting in
the aggregate several millions of dollars have
been made 10 the Illinois Central Railroad and
some OF these loans have, from time time, been
renewed All these loans were upon ample col
lateral They all unanimously authorized by
me hnance committee of the company The rates
OF interest were advantageous.
a similar loan made during the year TO the
southern Pacific company, also amply secured ind
at favorable interest rate.
The failure on the part Of the company 10 avail
itSelt OF an opportunity TO make advantageous
loans Of this description might have been the sub
Jtcl OF proper criticism by those interested in the
That these loans had anything whatever to DO
WIN me recent controversy as TO the control of the
do with the promotion Of Ny. Harriman's personal
interest or the personal interests OF any one
hected with the Mutual Life, is absolutely unwar-
Another loan which is made the subject of wrong
IuI presumption or lnimation in the questions re-
ported is q loan OF Sl6JJOl0 made to the Northern
New York Development Company This loan
originally made by the Mutual Life on November
y, I9b II was paid off, but renewed on June
Z, 1907, FOR year, at per cent on this loan the
principal and interest are guaranteed by the Della
ware X Hudson Canal Company. 1t Is secured by
bonds.
AS is well known. the Hudson Valley Railroad
ware and Hudson Canal Company. Its net earnings
under present management very largely IN
cess OF lhe interest on these BONDS Ihese bonds
have been sold in large numbers at figures ranging
above par There would not be the slightest difll-
Guilty even at the present time. In dspoSing Of all
Lies loan. At the time this loan made and
at the time II was renewed IL was not only ma Ie
upon ample, adequate security, but there was She
superadded guarantee OF the Delaware & Hudson
Canal Company.
Apparently the only criticism made upon this loan
not actively dealt in on the Stock Exchange
and not there quoted day by day. j am very sure
that YOU yourself would not regard this as just
ground for criticism
II there be anything in this matter MS 20 which
you may desire further enliehtenmenJ !. VII XIV
me pleasure to furnish f. JAMES MKEEN.
New York. oct. -. 1871.