New-York tribune., 1907-08-30
MAKES REPLYTOKELSEY
DENIES ALL CHARGES.
Secretary of Bankers Life Says
Com pany Was Not InsOlUent..

4 reply to the charges Of Superintendent Kelsey
of the State Insurance Department, who said he
had reported to the District Attorney Irregular
ties in the financial management Of the Bankers
Life Insurance Company, was made by Secretary
John Napier behalf of the company yesterday
afternoon. Superintendent Kelsey said that during
the year 1903 there was evidence that the company
was insolvent and that he lat conferred with
the District Attorneys Office of the county of New
York TO instituting criminal proceedings against
certain persons apparently implicated IN violations
OF law in conducting the business of the company
and In making official statement Of its hnan-
cial condition 10 the State Insurance Department
for the year ending December 81. 1904"
Secretary Napier admitted yesterday that at one
time the companys finances had not been all that
they should. bat he denied emphatically that II
had ever been insolvent within the meaning Of the
law. He said that the conditions referred 10 oc-
CURED during the regime Of Foster NJ. Voorhees,
former Governor Of New Jersey. who was for sew
eral years up to last March president OF the in
surance company. Mr.. Napier said that at that
time the stockholders, dissatisfied with the man
agement elected new set of officers and deposed
the old rulers. The president. who is still in
office is William Hanhart. secretary of the Saw
ings Bank Branch Of the American National Bank
ers Association Eugene Van Schack is vice-pres
ident and general counsel. while J. B. Docharty
jr is treasurer.
Superintendent Kelsey. reported in The
Tribune yesterday. pointed out discrepancies be-
real condition during 1904. When the matter was
mentioned yesterday to Secretary Napier ct the
Office OF the company, No. 81 Nassau street, he
said:
''Of course. I think It would be unwise for me
TO go into the details of Superintendent Kelsey's
report. All can say however, Is that at no time
has the company been insolvent. We now have a
surplus OF $4,000 To be sure. December =.
1896. our capital impaired 10 the extent Of
1885 81, but this was made good and the fact
verified by the State Insurance Department
April 4. 1866. In March. 1906. set of officers
was elected, and since then the company has had
a thorough housecleaning AS indication OF the
reign Of economy, it might be interesting to know
that the cost Of management in 1866 was s2'31sf j.
while in 1906 the cost Of management only
s11e 5n So This is a saving of s15SS75 50 in year.
''I do not to discuss the management Of ex-
Governor Voorhees, or Of his fellow officers. ANY
investigation by the District Attorney could nos
possibly affect the present officers or the company
since Superintendent Kelseys allegations have 30
do with the period Of the old regime. No reflection
is cast upon present management OF soivency"
Mr Napier said he had not been informed by
any representative of the District Attorneys office
OF an investigation "Our books open" lie
went on, land we have nothing 10 conceal"
Assistant District Attorney Mott who is in charge
OF the office during Nr Jerome's vacation. said
yesterday that he had heard nothing Of Mr.. Kel-
sey's reports except what he had read IN the news
papers '"The superintendent" said Mr.. Mott, de
cares that he has reported the matter 10 this office
and very probably he did 10 Mr.. Jerome per
sonally. I inquired Of Mr.. Krescl who has
handled most OF the life insurance work, and he
knows nothing OF it. Mr.. Jerome Will return on
Tuesday"
Telephone inquiry at the home Of ex-governor
Voorhees, in Elizabeth. n. j. resulted IN the in
formation last night that he was out. and nobody
knew where he could be found.