New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-04
KELSEY ACTS AT LAST.
Examines Mutual ReserUe after
Tzco Yers-MoUe a Surprise.

Superintendent Kelsey, IL was learned yestcr-
day. had begun an inspection Of the books OF
the Mutual Reserve Somewhat 20 the surprise
OF many Of the insurance officials two examiners
from the State Insurance Department arrived
at the company's offices on Thursday and an
nounced that they had come 70 overhaul the
company's books.
The State Insurance Department has not ex-
ar,ined the Mutual Reserve for about two years;
that is. since before the Armstrong investiga-
ton Although the company's representative
told the reporter that this was the regular BIZ
ennial investigation, the news of the examina-
tion coupled with the present critical situation
at Albany and the fact that President Frederick
A. Burnham and vice-president George D.
Eldridge Of the Mutual Reserve are under IN
dictment for larceny and forgery-George Burn
ham, jr President Burnham's brother having
been convicted-caused great interest in insur-
ance circles last night.
So far as can be learned this is the first ex-
animation by the State Insurance Department
of New York life company since Charles E.
Hughes assumed the Governorship. Speculation
Is rife as TO whether the examination is Mr.
Hughes's second insurance move since he took
office some of the insurance interests seeing in
Il, however the inception OF an attempt the
part OF Superintendent Kelsey 20 vindicate his
department In view Of the recent criticisms.
The company did not appear In an altogether
favorable light before the Armstrong commit
tee, and much OF the evidence which the
grand Jury found indictments against the three
men on March s. 1906 was in the testimony of
James S. Wells, former officer Of the COM
pany, who alleged that these officers had paid
personal judgments against them with the COM
pany's funds
Should the examiners find any new evidence OF
q criminal nature Ct IS understood that the de-
partment will turn it over 20 District Attorney
Jerome. The present examination follows the
filing Of a deferred report.
While the cases are hardly analogous. II has
been suggested, IL IS said TO the two men now
under indictment that they follow the example
OF George w. Perkins and repay the sums in
vOlyed In the indictments. In this connection it
Is pointed out that the fees Of counsel for the
past and prospective. Of George Burnham's de-
fence in the various courts probably will by
far exceed the cost OF the sums involved in the
indictments.
The company's directors seem TO agree that
the Mutual Reserve is to-day intrinsically
TEN of drastic retrenchment which would in
clude the curteiling OF counsel fees the reducing
Of the salaries OF high officials, etc, has still
promising future. Meanwhile IL appears 10 be
conceded that much will hinge on the Insurance
Departments examination and the trial OF the
two men,
The recent increased assessments are ex-
planned by the assertion that from about 1881 20
1895 the company sold insurance at less than
half cost.
who would discuss the examination last night.
Since Mr.. Hughes was elected Governor, it
was learned, he has received many suggestions
that the company be examined.