Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-02-11
MESSAGE LAID ON THE TABLE.
Governor Declares That N. Y.
Superintendent of Insurance
Is Incompetent.
Credit of Empire State is Involved,
And With State Senate Rests Re
sponsibility for Maintaining 1t.

Albany n. Y, Feb. 11.--Gov. Hughes
today renewed to the senate his recon-
mendation of last year that Otto Kill
sey be removed from the Office of state
superintendent of insurance on the
ground of ncompetency. Last year the
senate refused by a vote OF 81 to q
to remove supt. Kelsey.
Gov. Hughes bases his renewal OF the
recommendation on the report OF Mat
thew c. Fleming. the governors special
commissioner, who recently investigat-
ed the insurance department and trans
nitted with his message copy of Mr..
Fleming's report. on motion of Senator
Raines the message without comment,
was unanimously ordered printed and
FOR the present to be laid on the ta-
ble.'
MAGNITUDE OF WORK.
While admitting the magnitude of the
work of the insurance department ana
that its task had recently increased,
the governor says that side by side
with these departmental activities there
grew up wasteful and corrupt methods
which scandalized the country and
brought the supervision of the depart
ment with regard TO the important in
terests of the holders of life insurance
policies into contempt"
From the insurance investigation OF
1906 says the governor, lit appeared
that II its energy had been well direct
ed and the department had been ell
cient in the true sense most of the
scandals which were revealed could not
have existed"
The governor says further that he APP
preciates the unusual conditions which
confronted supt. Kelsey upon his tax
ing office but adds
but he had conspicuous advantages.
He took office with abuses ascertained;
with the derelictions of the depart
ment known with clearly defined obli-
cations which were not left for him TO
discover but which were writ large
in the minds of all the people OF the
state. lie was also equipped with adj
ditional powers"
KELSEY HAD CHARGE.
''Mr Kelsey took office on May 10.
1906, and has now served more than
one-half his term. At the time Mr.,
Fleming began the taking of testi-
mony, he had served for year and
five months He had had full oppor-
tunity to show whether he was equal
to his important duties. But the
facts submitted establishes beyond ca
vii that the present superintendent
has not measured up TO the standard
MnfCn the state must llslilldlil anu
upon which Indifference to the vast
interests involved, II is my duty so
far as my power goes to insist, 1t
must have been clear to any one COM
petent to be it's chief and to establish
1t upon a permanent basis, that a
thorough overhauling of the depart
ment was necessary. The superinten-
dent has had free hand; he had had
abundant time but the house has not
been cleaned
STATES CREDIT INVOLVED.
The concluding paragraph OF the
governors message Is as follows:
The matter now presented 10 you
involves the credit OF tho state. The
conduct of the department should ex-
hibit that care, thoroughness and
vigilance which win guarantee ade-
uuate protection TO the interests OF the
policyholders and at the same time
Justly insure the standing anil promote
the success of the companies bearing
the seal of the departments approval.
This, 1 am convinced. can lie obtained
in only one way, and that is by hav-
ing tho department placed In other
hands. The interests OF the state re-
quire that a change should be made.
~ therefore recommend that Otto
Kelsey, superintendent OF insurance
be removed from his office.