Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-07
Says Three Are in Plot.

howell ueSlSndtlOn was yesterday revoked
by Jackson.
Says Three Are in Plot.
Next Monday the attorney general pur-
poses to appear before Justice Kelly in the
Kings county supreme court and strenuous
ly oppose what he regards an organized
plot on the part of the superintendent of
insurance, the former attorney general and
counsel to sti1e an inquiry.
The looting of the Republic company is
described in the following statement issued
from the attorney generals office last
night:
Attorney General Jackson has ordered a
searching investigation of the proceedings
for the dissolution Of the Republic Savings
and Loan Association.
1T appears that In 1901. on the recon-
mendation of the superintendent of banks,
proceedings to dissolve this association
were instituted From all the sources OBJ
tainable it would seem that the total assets
of the association at the time the proceed
ings were commenced were not less than
1900, 900. The receivers are Edward G.. Riggs
and Otto Kelsey. Their counsel have been
and are Messrs. G. D. B. Hasbrouck &
johnson, Mr.. Hasbrouck being the senior
member of said firm.
20. P. Howell of Port Jervis has acted
as special counsel for the attorney general
under designation by former Attorney Cen
eral Mayer. His designation was today re-
voked by Attorney General Jackson
From all the information obtainable, so
the creditors say, it appears that the cash
now in hand aggregates about $4,000. and
of this amount $6S06 is interest. From
June, 1903, to July IA, 1905, Hasbrouck &
Johnson, attorneys for the receivers, re-
ceived $40, $685. SO in fees in this matter, and
it would appear from the papers that this
enormous amount was paid them for col
lecting approximately $4,000 In 1901 they
received in fees S12,2JO, and these two
amounts did not include any fees which
they received in jurisdictions outside the
state of New York. Their fees in the state
of Delaware were regarded as so excessive
that the court appointed master in chan
Gerry to review their charges, who reduced
the same amount about one-haf.
Receivers Big Fees.
"In matters in Pennsylvania 1t appears
on the face of the papers that the receiv-
ers and attorneys realized $4,000 in fees
and for counsel For services rendered In
the state Of New York, exclusive of the
sums hereinbefore paid said receivers, they
received in 1901 in fees, $4O4O 90, and from
July 26, 1903, to July Ia, 1905, they received
in this state SO, 1921.
"There also appear many items in the &C
count for Office rent for the occupancy by
these receivers or their attorneys Of the
New York law office Of Hasbrouck & john
son, or one of their firm Also several
items for clerks in their Office
1.-THE account and the objections thereto
taken together indicate excessive and I'M
reasonable charges and improvident waste
Of the creditors money and the conduct of
TIE receivers of the business of this asso-
citation in such manner that the as
sets have dwindled from s6GOC0O to less
:han $4,000, which, in the opinion of the
a:tolnoy general, justifies the most rigid
and searching examination Of the proceed
irgS of the receivers in all jurisdictions.
THE creditors are indignant over the fact
that the attorneys for the receivers appear
to have received in fees a sum equal to
fi.ao three times the IF q
dividend which the creditors will partici-
| pate in. Although six years have elapsed
sin &c TIC proceedings were instituted. the
creditors have received nothing
Kelsey Not Disturbed.
When Superintendent Of Insurance KELSEY
saw the attorney generals Indictment he
seemed little disturbed.
1T is true said he, that I have been
and still am the receiver for the Republic
company. Though there is nothing i'm
| proper in holding such receivership stimuli
taneously with the SUPPLEMENTARY of in
surance. I have been trying to get the az
| fairs Of the company settled so I could
withdraw. But delays in the courts in
| many states have prevented final adj
justment.
President Pro Tenn. Raines of the senate,
Senators White, Hooker, Smith and others
Of the upper house. to say nothing of
| Speaker Wadsworth, are still challenging
| the governor to remove Kelsey. The gov
ernor again refused to discuss the PROPOSE
| ton last night. but in view Of yesterdays
disclosures he is likely to act speedily.
Rumors which prevailed yesterday that
Gov. Hughes plans to appoint Robert Lynn
Cox of Buffalo successor to Kelsey appear
| to bear substantial authenticity. A very
| intimate personal friend Of the governor
said:
1.-THE governor believes he has treated
Kelsey with rare consideration. It Is true
| that he thinks highly of Robert Lynn Cox
They were thrown together when Cox was
a member of the Armstrong insurance in
quirS committee, and Cox was the most We
| hement champion of the governors insur-
| ance ideas on the floor of the assembly
/ last winter"