New-York tribune., 1907-10-30
DISCLOSED AT INQUIRY,
Providcnt Life Securities Sold
Funds Here IN Thomas Banks.

Albany. oct cat the continuation to-day OF
the investigation into the state Insurance Depart
meut by Matthew Q. Fleming. who named
special commissioner by Governor Hughes. IL de
veIoped that securities held by the PrOvident Saw
inEs Life Assurance Society, of which eX-Lieuten-
ant Governor Woodruff president. were sold
last January and February and the proceeds de-
posted I'm four banks controlled by T. r. and o. F.
Thomas. 1t also brought out that this money
was withdrawn last Monday. following invest-
CATION All these facts were told by Superintendent
Otto Kelsey Of the State Insurance Department,
who was recalled by Mr.. Fleming
In reply to questions OF Mr.. Fleming. Superin-
tendent Kelsey said that about September II he
received information from two sources that there
was something wrong with the Provident Saw
ings Life Assurance Society one of the messages
came from ex-Judge Hatch, who was leading cOun-
sci for Mr. Kelsey before the Senate Judiciary
Committee at the time of the recommendation OF
Governor Hughes for the removal of Superinten-
dent Kelsey from Office Mr. Kelsey said that his
information from Mr.. Hatch came 10 him in
yelled language
superintendent Kelsey said he communicated with
Mr. Woodruff whom he met by appointment in the
Albany railroad station. Mr. Woodruff declared.
according to Superintendent Kelsey that there was
nothing in the allegations" Later Superintendent
Kelsey said investigation was begun, and this
investigation is still in progress.
Mr. Fleming produced a statement which showed
that the Provident Life Savings Assurance Society
had on September 30 last the following amounts I'm
the banks named: The Hudson Trust Company.
Sis OO: the Union Bank of Brooklyn. $1SOOOO; the
Mercantile National Bank. $66.2Si; the Consolidated
National Bank. Sl05.CO.
Those banks are Thomas banks, are they not?"
asked Mr.. Fleming.
Il have been so informed replied Superintendent
Kelsey.
1t also was asserted that the Provident Life on
September IS last redeemed $4,000 of Japanese
bonds.
superintcndent Kelsey. in reply to question said
he had made certain changes among the attaches
of the New York office as result of the disclosures
made at the investigation Of the Armstrong Iesis-
lative investigating committee. He was questioned
in regard to two employees. attached TO the New
York office who are said TO he relatives of Louis
+ Pawn former Superintendent of Insurance.
II haven't hunted up their family relations
said Superintendent Kelsey, so long as they do
their work satisfactorily
1t developed that two of the new examiners were
clergymen.
David X Keefer assistant actuary in the State
Insurance Department. questioned to
loan of 81 500 made TO him by the Security Mutual
Life Insurance Company, of Binghamton while he
was employed in the state insurance department
Mr. Keefer said he understood when he received
the loan il was n personal from President
Turner. but later it was learned that 1t was made
by the company.
'.Did Superintendent Kelsey ask you for
planation?" asked Mr.. Fleming
NO sir; l went to him and made explana-
ton He seemed be satisfied that 1 had done
no wrong"
Mr. Keefer said that of his sons. George o.
was employed in the actuary department of the
Mutual Life; another son. Harry, by the Equitable.
and a third son. Percy. by the Metropolitan He
also said "A brother employed by the Travellers
of Hartford.
Second Deputy Henry d. Appleton and Third
Denutv Thomas +. Behan were examined as to
the details of the Office and it's records and data.
The investigation will be continued tomorrow at
1890 a.