New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-21
KSEELSCY'S REMOVAL
Continued from first page.


roitcvEo'ders has been conserved by the char
acter - lis management in ne past. believe
the time occupied in esta bhsnin6 TINS fact was
Ever. fa~.iity wss afforded bv the companys
officers ana the heads II its several departments
70 thoroughly accomplish the work "nlcn mas
feeu materially expedited by the adn1lrable
methods in vogue at he home oflce IN the mana
ling Of accounts, and keeping o. books OF initial
or final entry"
1904 the same examiner reported:
The result Of this work ! believe amply 5uSu--
hes tae conclusion that all disbursements found
10 have been made incidental To the expense o.
conducting business were III =" sense eA''z9'.''
.l.-lasona BILE or not warranted.
5ho officers and Representative ~ INC con-,
pam gave -our aminers fun and free access -
ali RS records ana aided them in every Ndt III
their culeayor 10 accomplish the work It4oi'
oushly ami expedltiousiy.
,Ttoee res t,-ara presented TO The Legislature
IN the repor, OF its committee, which concluded
its review of the work q the department win
@aIost Of The evils which have been disclosed
by the investigation would have been lmpoSslDIe
had there been vigorous performance OF ll!e
duties already laid upon the department. a Nlgi-
lent vatchfulncss in the interests of policy mold
ers and courageous exercise OF the powers
%hicn Inc statute COnfeTS.
When Mr. Kelsey took Office there was just
and nsistent public demand that the insurance
Department should be purged of those reSpoiIlSl-
bic for its dere1ctions. ana thar men S'IiI Sa
nut in charge Of its important work IN whose
capacity and fidelity the people could conhde.
The superintendent Of necessity mas peel S"i ~!
PEELED largely to rely upon the reports "I nl9
sUbordinates and il was patent 'haI lf!e pa sa
mount duty Of the new superintendent III "iueI
70 insure efficiency i'm the work Of the depart
rneut was 70 remove those who had either Neeh
willing 10 countenance, or had been too lnefIl-
cient to discover. the abuses the existence OF
which had brought the department supervision
into disgrace
and the report Of the legislative committee: he
was not left i'm the dark as TO the conditions
which had existed In notable instances ne i,'u
specific information as 10 those WITHIN me &c
failure.
The examination work in New York city for
some years had been in charge Of the first dep
urv Il IS uncomfortable that had he performed
his dury the conditions obtaining in the compa-
MES from time time under examination couid
have remained undiscosed. The improprlety
OF continuing him in office was apparent Ter
nine months have elapsed since Mr.. Kelsey
appointment. and the officer in question stllI re-
mains first deputy.
The extraordinary reports above referred to
upon the examination Of the three great compa-
mics were made by the chief examiner His tes-
timony before the legislative committee showed
that his examinations SO far as they We're A
test Of the character Of the mana cement. We're
q farce and vet his reports clearly permitted
the Inference and in one case distinctly stated
that this matter had been thoroughly examined.
Nevertheless. the chief examiner was retained
by Mr. Kelsey for about eight months and until
his voluntary resignation in January 81 TINS
Mr. Kelsey gives the barren excuse that he
had large amount Of work on hand and needed
the services Of these men while he was familiar
izng himself with the details Of the department.
This attitude shows his entire failure TO grasp
his duty He was justified in relying on the
reports Of those who had been so conspiCuously
unfaithful nor could he properly permit him
self to depend for information as TO depart
mental needs upon those who misled former
superintendent and could not he supposed 10
have any sympathy with necessary efforts 70
reform the department. 1t is difficult to eXag-
eeraIe me great lIlp'I lance OF me "oIh WIN
which those holding these positions are en-
trusted - investigating transactions OF vast
magnitude under conditions calling for the
highest degree Of confidence. 1t requires the
most sCrupulous fidelity. The State Of New
York IS not lacking in men qualified TO take
such positions II one has a mind to seek them.
Mr.. Kelsey had right to condone the faiings
Of those who had been proved inefficient. for he
owed a duty 70 the people Of the state TO put
the department beyond the reach of just CTiti-
ciern ans 10 re-esta blfsh the confidence which
had been so seriously shaken. 1t not his
official function TO commiserate or 10 protect,
but il was his duty 70 take vigorous action
which would assure TO all that the great bust
ness Of life Insurance in the State Of New York
was hereafter 70 be conducted under yigilant
supervision.
The position Of first deputy was exempt FROM
Civil Service restrictions II could have been
filed at any time. but Mr.. Kelsey made no suit
able effort 20 fill i. II appears that he intended
10 have a reorganization, which he supposed
might be effected IN the early part ~ this year.
possibly br new legislation hut has not vet
been effected and which incidentally would dis
pose Of TIE first deputy by abolishing the posi-
ton as il had existed. Meanwhile he thought ~
Increased vigilance ne could use the present in
cunbenf II appears from his testimony suo-
mitteG herewith that he did not desire 10 repri-
mand Or dismiss him.
The position Of chief examiner was in the
competitive class. No definite request was made
for examinations TO provide an eligible list un-
I'll about the time the chief examiner resigned:
nor was there any effort 10 procure permission
TO I'll the place temporarily pending such ex-
eminations permission which doubtless would
have been instantly granted.
Not only did Mr.. Kelsey fall promptly to re-
move these subordinates who had 50 ENORMOUSLY
failed IN their duties, but he made no effort TO
determine the responsibility Of other employees
Tor the grave defects which had existed in the
work Of the department. He should have con-
Quoted a searching examination 10 find out
whom he could trust, TO determine who had
been faithful and who faithless. He evidently
had no adequate conception OF his duties in the
premises.
Despite the evidence adduced before the legis-
lative committee to the efforts Of the COM
panies 10 control legislative and departmental
action. and their lavish expenditures Of moneys
Tor this purpose, Mr. Kelsey made no Inquiries
10 determine the relations Of the men i'm the
department in order that he might be advised
whether they were under any obligations inc0n-
slStent with their duty 70 the state The legis-
latiNe committee in its report. commented upon
the fact that one Of the clerks IN the department
had heen appointed az the instance Of Andrew
c Fields who had been in general charge OF the
legislative enterprises Of the more important
companies. This clerk is still in the deparf-
nent, and although his testimony as 10 his re-
lations taken by the committee II appears
that Mr. Kelsey has not read it,
There is no satisfactory evidence that Mr.
helseE endeavored 10 master the situation and
10 put the department upon proper basis.
with the exception two or three trihng
changes ~ MINOR positions having relation
IN this object, all the officers and employees
whom he found employed in the DEPARTMENT
When he took Office he retained until the end Of
the year. and understand that UP to the pres
ent Time no dismissal has been made for cause
Undoubtedly tne work Of the department ba .
neen onerous and has required large expendi-
ture OF time and thought Nor do I seek to i'm
pugn Mr.. helsey's integrity.
But the more important the work of the de-
psItment the greater the need of makin2 II
sfifclent ana trustworthy. The assiduity Of