New-York tribune., 1907-03-30

sf there were employees who were objectionable
know no reason why they could not be dis
missed n cause were shown.
'IIe said that the matter was in such shaps
shat no did not believe anything would be ae-
ceptable except a radical change. houseclean-
GnE I told him that Il was matter in which
could not. having had no indication that there
was criticism OF the department. be expected TO
make I'd my mind at a moments notice. ana
fhought that IL was not unreasonable TO ask Tor
the tine 20 reflect on the matter and consult
my friends. He said certainly. there was no OBJ
sectien and asked how much time needed.
told him was going 10 New York on matter
with the inspectors Of the two big insurance
companies. that some Of the friends whom
wished TO consult were not within the state and
] suggested couple Of weeks. He said, Let It
stand for a few days Then he said Let US un-
oerstand each other. There is TO be no indef-
fnite postponeunent. ] wish 10 have an answer
within a few days. 1 said If he felt that way
that he was entitled 10 it,"
Just at the end Judge Hatch asked Mr.. Kelsey
81 nc ever had any indication that the Governor
was not satisfied with conditions in the depart
ment.
Not the slightest" he replied. What little
conversation he had with me seemed cordial I
had no idea was the object Of dislike or dis
trust"
Before this Mr.. Kelsey testified that he had
told Governor Higgins about the serious condi-
tion in the Insurance Department. and had been
advised. if he thought best. 10 retain Hunter and
Vanderpoel. and in the testimony he repeated
the certificates Of character he has given to
those men at various times. Able. efficient"
ne termed them and at times Indispensable
One day in May he said. he talked about the
department with Governor Higgins while walk
ing through the park He told the Governor
that affairs were in a critical condition and he
did not see how he would be able to spare
Hunter and Vanderpoel before the enc Of the
year.
He said II was necessary to be cautious"
said Mr.. Kelsey. ''and that he would trust my
judgment to take the safe course. If I needed
these men, he saw no objection TO my retaining
fhem."
HAD LONG TALK WITH HIGGINS.
Again. in June. he had long talk with Gov
ernor Higgins about the critical fire insurance
situation He had told him that many letters
were pouring into the department inquiring
about the stability Of companies. The necessary
information. he had told the Governor, he got
through Hunter and Vanderpool al the New
York Office, who through their long experience
had means Of getting confidential information
Il told him 1 considered them invaluable and
their services indispensable just then said
Mr.. Kelsey. His answer recall it, was
AN right
This critical condition did not appeal alone to
Mr.. Kelsey. About the end of July Governor
Higgins transmitted 10 the superintendent
letter from Charles A. Moore of Manning. Max
well & Moore. in which the writer declared that
conditions were appalling in some companies,
which were lowering on the brink Of failure al
though they still were doing business unchecked
by the department. Mr. Moore said that the
fV,Po- ,-aFo
about these conditions For use in the coming
State campaign, and ne urged Governor Higgins
10 see that the Insurance Department checked
them for the honor of the Republican party. To
this Mr.. Kelsey replied in long letter, saying
that he had received information by formal
statement and through Hunter and Eanderpool
which had not shown any companies in a serious
state Mr. Moore tn two s1bsearent letters re-
peated his charges, Offering 70 cite specific in
stances. The third letter was transmitted 20 ar
Kelsey by the Governor with the comment that
evidence Mr. Kelsey had sent it back 10 tl9a
Governor. similar letter had come from the
Merchants Association. Nr. Z h-isey's ccTarneSS
On Z 10 Governor Higgins was thai "C,aristy
Meads organization was butting n.
ACTS OF TWO COMPANIES PEoBED
Senator Page. IN y series Of questions showed
that though most 9f the ssh F-1ac.s"o claims
were not settled yet no general tuali:ry a. 20
the solVeuey OF the companies hal been made
beyond the routine department custom. Two
compenies had fai.ed end their acts had been
A-r Kelsey testified to-day that he kept the
Armstrong report on his desk and used 4 a
reference hook when questions came -p. This
was 10 offset his testimony before Governor
Hughes that he never re2d the report through.
He testified also that ae had expected 10
make cleaning out IA his department which
would relieve Hunter and VGndercocl OF duty
because Uf the criticism hurled against them
Speaking Of Hunter, he said: 'T had 40 faslt
20 dnd with AIr. Hunter under ne I found him
an energetic. competent man: and in accepting
1lr. Hunters resignation. he wrote cf his per-
sOn2l appreciation OF the service rendered Fx-
Justice Hatch brought up the Interview with
Senator Armstrong and Ar. Hughes In Jcne az
the Bar Association meeting. sIr. Kelsey stfJI
could not remember that ttey then aff--ls-a niro
20 get rio Of Hunter ard Tandsrpc0?. Tye re-
membered that Senator Armstrong at some tir-,a
mad told him strongly 10 get rid cf those men:
and he did not IN the ieazt deny :hat Il might
have been at thai time. He Nes not sure
Referring TO the Civil Service examination to
al Chief Examiner VanderpoeI's place Superin-
tendent Kelsey said that dozen persons had
taken the examination the outcome Of which
was still unknown
DO you know II any Of those taking the OK
animation are capable OF filing either Hunters
or Eanderpoers placer" asked Judge Hatch
''I do not"
Mr.. Kelsey said there was now no such cleri-