New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-23
THE KELSEY HEARING.
HIS DILIGENCE SHOWN.
armstrong ReceiUed Fee for ASSIST
Gnce Given Superintendent.
~ Telegraph . nc TrIsnne.1 !

almost down to date without the slightest sus-
picion Of startling disclosures It proved what
Governor Hughes. who demanded his removal
for failure to perform obvious duties Of tho
first Importance, has never denied-that 8Ir.
Kelsey was diligent and faithful as any man.
ager OF business house In answering CORE
spondence and supervising details. Nowhere
was evidence submitted that he struck out on
any policy Of reform or reorganization as the
forceful proprietor of a business would do
AT times the hearing degenerated almost into
a farce Pile after pile Of correspondence taken
from the records Of the department, was offered
in evidence. In one batch were $40 letters. "alI
written by Superintendent Kelsey" By the end.
| OF the day eighty-seven exhibits had been Of
fered by his lawyers For the committee 70
examine these exhibits even cursoriIy would
! take weeks. Mr.. KeIsey's lawyers have hun
dreds more to offer during his examination
Then they expect to put other witnesses on tho
stand. They feel perfectly confident that this
privilege will be granted by the committee; in
deed, ex-JUstice Hatch to-day asked the COM
mittee to hold a session in New York City soon
/ 10 hear witnesses there
Questions were asked and answered most og
the time in words of one syllable" Letters
We're read and questions asked dealing with af-
fairs of veriest routine. until members OF tho
conmittee. wearied beyond endurance, turned to-
newspapers or private correspondence for soIace-
| The only humor manifested. though. was when
Julius NJ. Mayor spoke ''in the interests Of brew
ity. and Judge Hatch declared that he ami his
client did not desire to delay one instant" Yet
they expect the examination of Kelsey will take
Thursday and Friday Of next week; and then
hope 20 begin with other testimony concerning
the fire insurance situation, which they consider
even more favorable for his case than the wOrbs
concerning the life companies.
MR.. KELSEY NAMED THE AMOUNT
One feature OF the hearing to-day which ex.
cited some comment was the statement that
Senator Armstrong had accepted 500 and SIG SO
for expenses for acting as special counsel for
Kelsey IN the preparation Of standard forms.
Senator Armstrong went to New York from
Rochester on December g. 1906. aTs5 his SER
vice according 70 che bill in the Controllers
Office ended the next day. He said to-day that
he felt some doubt as TO the propriety Of taking
the fees. but Mr.. Kelsey himself had named the
amount.
Comparatively little interest was show in the
/ proceedings Senators Raines and NicCarreu
4 were not at the hearing. Few spectators attend
/ ed. Half the members of the committee were
1 not in their seats most of the time Speaker
WadswOrth. though. sat faithfully through It al.
listening to the testimony Of Superintendent
/ Kelsey who is his friend.
At the morning session the questions took UP
i
ard form of policy. Forms and blanks and let
ters were examined and read and offered in evi-
dence Mr.. Kelsey said that in october he sent
copies OF the standard forms and contracts 10
Mr. Hughes but never received any reply about
them. He sent copies also 70 Senator ARM
strong with the same result.
He never had heard any criticism OF the
forms Further examination brought out the
fact that he made rulings on the Interpretation
/ of various sections of the Insurance law. Under
Section 1O1 there had been ffty-foUr rulings.
All were offered in evidence. All were the prod-
uct Of his personal judgment he said Many
rulings concerning Interpretation of sections of
the Armstrong laws. he said. were made after
consultation with Attorney General Mayer. No
precedents existed for the Interpretation OF those
laws.
PRELIMINARY REPORT KELsEY's IDEA
After adjournment for luncheon. ex-Justico
Hatch took up the regulation of fraternal and
mutual companies. which had occupied good
part OF Kelsey's time. a draft of the annual
report was offered in evidence to show. accord
iaE to Mr. Hatch. that Superintendent Kelsey
possessed some initiative" II was entirely his
ides that a preliminary report was offered to
the Legislature as early as January, Mr.. Kelsey
testified This he had written out "in his own
hand and submitted 10 The Governor. A day
or two later he had asked the Governor tf he
had found anything heterodOx in it, and was
told no When he asked then if he should 60
ahead and print ii. the Governor answered. no
said. 'Yes: it is a good memorandum"
Taking up the preparation OF the forms for
annual reports by Insurance companies, which 2
had to be prepared in great detail because oe
the Armstrong laws. Justice Hatch brought out
a few more exhibits and much more testimony
At one point he asked;
Are you able 10 say that you examined ami
passed on every statement to be contained IN
these blanks?
Il am: every line replied Kelsey.
What part was the product of your own
mind?" inquired Senator Hinman
principally the passing and determining
about the work of others" Mr.. Kelsey replied.
Sometimes this work was presented in three
or four forms"
did you ever make changes from the forms
in which it presented?"
in numerous cases. In one entirely reversed
the proposed plan My action stood in the end.S
MAYER PRESENTS $40 LETTERS
His action he went on. was on the advice ee
a consulting actuary named Wolfe. Some ffty-
six letters and ty-six rulings under the Sec
tion relating to the annual statements were put
IN evidence. and later correspondence with
tventy-fnur companies in the investigation OF
fraternaI and mutual concerns which Mr.. Kelsey
maintains brought about better conditions among
those companies. Still further along the limo
Mr.. Mayer presented $40 letters relating to COM
plants against the New York Life, made by the
international PCIicyhoIders' Committee in the re-
cent election.
When the session came to an end ex-Justics
Hatch suggested that while KeIsey's eXamina-