New-York tribune., 1908-01-01
ON MUTUAL RESERVE.
MR. KELSEYS ANALYSIS.
Efforts Being Made to Arert In
solUency-ById5c Changes Urged.

Otto Kelsey. state Superintendent of Insur-
Gnce, filed his fnai report yesterday on the Mutt
ual Reserve Life Insurance Company with the
Attorney General at Albany. Advices from Al
hsny say that the report shows q serious i'm
pairment Of the company's financial condition.
At the request OF Attorney General Jackson this
report will not be made public until ne has had
the opportunity 20 examine it carefully and de-
terTnine II IL is OF such character as to require
legal action
The fact that the Attorney General received
The report formally from Mr.. Kelsey consid-
ered significant by insurance men in New York
City yesterday That Mr.. Kelsey would event.
uaily submit his report on the Mutual Reserve
to the Attorney General exclusively told in
The Tribune. The original report OF the states
Insurance examiners on the assets Of the COM
pany Of such a character that its officials
asked for and received several hearings and per-
mission submit briefs. in endeavor to get
Nr. Kelsey 10 modify the report of the exam
Iners and TO put a higher valuation on its
assets
Counsel for the company. in an argument be-
fore Judge Ward. of the Circuit Court, on the
motion to make permanent a temporary in
junction restraining President Haynes and other
orhcials of the company from voting certain
policyhoIders' proxies in their possession to
change the bylaws Of the Mutual Reserve, said
that unless these bylaws were changed permit
ting some $700OO0 OF liens on assessment poll
cies be credited assets Of the company
Instead Of being charged as liabilities the
Attorney General in opinion rendered to MI
Kelsey ruled they should be charged, the COM
pany would be nsolVent
As Judge Ward ruled that there should be no
meeting Of the policyhoders at which these
proxies could be voted until at least thirty days
notice Of such meeting was given, and as. there
fore. they have not been voted yet, and hence
the IylaUs have not been changed. members OF
the policyholders committee and counsel for the
committee said yesterday that they believed the
report Of NSr. Kelsey. when made public. would
show the Mutual Reserve TO be badly involved
Some of them estimated that the company
needed approximately S1.J4n0OO make it SOL
vent on the other hand representatives OF the
company said last night that they felt conf
dent that Mr.. Kelsey would report the Mutual
Reserve solvent. and that his final report would
o. a decided modification OF the original report
Of The examiners
William Hepburn Russell. Of counsel for the
poIicyholders' committee. told Tribune re-
porter yesterday evening that IL had come to
his knowledge that q meeting of the directors
y the Mutual Reserve was held on December Il.
and that al this meeting the directors voted 10
charge liens to the amount OF Sl;E'r''9 against
he assessment policyholders. voting this re-
rardless Of any action before Judge Ward or his
decision" Mr.. Russell said that he wished 10
protest strongly against this action on the part
II the directors and would within few days
take the matter up in his capacity as counsel
for the policyholdeTs.
Another meeting of representatives Of the pol
lcy-holders officials of the company and a few
of the polcyholders. Was held yesterday II
was adjourned at once, pending Judge Wards
official order.
Regarding the action Of the directors Presi-
Sent Haynes said last night: 1t was a pro-
gislonai action only. and dependent entirely
Ipon a.. decision of The Attorney Gensral on
several questions before him and under
ais consideration. I emphasize that fact that
Z was and i a provisional action only
In speaking q ne general situation facing
IL company. NJ Haynes said. The examiners
y the Insurance DeT arrmert have treated this
company IN way IN which ~ other mutual