New-York tribune., 1908-02-03
In 1906 the Equitable sold the following stocks:

Se"SiN'-
Par Consideration
Stock. value approximate
Commercial Trust Company Of Pha- ,oooo~, ~,
Franklin National Bank Of Philadel- -.
phia (entire holdng .--... i9ofS 500 500 UO ~, ~ ~
Missouri safe Deposit 100000 125ooo 90
Up to September H. 1867. the society had sold the
following stocks:
Par Consideration
Stock. value approximate
Commercial Trust Company of Phia- ooo -,
Fide,ity de'PHA Trust Company Of Newark -
,sRiiTe n.y., 5 @ SS 100 800 500 5 g g
Mercantile safe Deposit Company ., coo ,oo s,s %
Lawyers Mortgage company tentire ~,
OF the Fidelity Trust Company stock F. W. Jack.
bought $500 par value for $3.50 and John r
DRYDEN s2is so par value for ss%1 9f which me ne
ket value December 81. 1896, was reported as
With regard the sale of Fifth Avenue Trust
Company stock it appears that ten shares We're ,
and 500 60 on May .; 1907 to the Mercantile Trust
ported on December 81. 1906. $500 a share.
AS already noted the Equitable acquired $4,000
June - 1886, it purchased 100000 InterbOrough
fanons noS tp Entire 5ongs ON December
81, 1906. of bonds of companies in the interboroqgh
cember g. 1904 They are given in Exhibit No IL
1t appears that although the report of the Equl-
= 1905 was fed on February 25, 1907, and although
Mr. Kelsey had ruled that such an acquisition after
June l. 1866 was illegal neither he nor any of his
ton was called in the of this inquiry
October 9 From the Equitables statement that
the transaction seems perfectly legal, criticism
being that reported in February 1t was Il clear
violation of the Superintendent's ruling, and yet
was not discovered. 1t further appears that In the
August and handed to Mr.. Kelsey in September
his attention was called to the fact that the Iqui-
Mr. Kelsey further states that in his opinion the
above acquisition by the Equitable on June r. 1896
&
was illegal but that he had never heard of It
in the same report aied on February 25, While
looked into this matter. the society states that the
explanation of this transaction is the same as the
one above gwen in the case of the lnterooroush
As it was not until about November I. and long
after the beginning of this inquiry, that he began
to require financial reports from insurance com
not up to October % learned of the purchase and
sale of Mercantile Safe Deposit stock or the sale
was prepared TO say whether a sale of life
trolled by i; would be compliance with the law,
nor whether sale for part cash and the balance
IN Fnp np'T be same reason he did not discover until
October % the sales Of seenres Py the pd
Fahruary 1907 and the large consequent increase
Of that bT G'S the owners Of aory Of
the stock of that company; nor old he investigate
ms rns made of these funds The chief examiner
states that it is reRorted 5nn' eFe that h Pro
dart Savirgs's funds should remain on DEPOSIT , Isl;
Will
srrance company was psi1c
LOAN OF ssOOo1o WELL SECURED.
.s 70 the n6co.Oco loan to the Northern New
yo-L DEVELOPMENT Company, the propriety of
which has been much discussed. the report says
that il is unquestionably well secured. and the
ONLY question is whether the collateral Is proper
collateral under the insurance law. The stats
tician failed TO call the Superintendents f9uc+ 10
any of this question
summing ,Ip all the detailed criticism, the
mort uses the head "Tneficiency." Discrepancies
in reports were spoken of by one subordinate TO
another but nothing ever seemed TO come OF some
of them The statistician 'neglects TO detect or
rerort investments which on the face Of the re-
no-ts fled in February Illegal" The stalls
tician himself says that the department of audit
has never had auditor The value of its audit
is obvious" OF Mr.. Kelsey himself the report
SAYS:
His failure to reorganlze his department which
due to the confidence and trust which are SO
characteristics of m hm In m od I ne t9h tae
and Vanderpoel. that under the changed conditions
no reason to distrust any work done by MI keefer.
These expressions OF confidence are found ire
to Hunter and Vanderpoel he says, Il believed in
the conduct Of the business @ would know What What
upon Vanderpoe He states that he Is satisfied
that Mr. Andrews is an efficient man; that he pre-
to verify valuation sheets in full: that Mr..
Appleton can sign the superintendent name to
checks and that there is no precaution taken TO
prevent his drawing them to persons other than the
State Treasurer to whom they an go: and ,hnt. d
ing a recess in his testimony whether the secnri-
600 COO were registered or coupon bonds any one
of several men in the dtpartnent mas access 20
dispostion appears in the 'fact that while Con-
troller he placed clerk IN coinpiete chaIse on ts
printing. custody and destruction OF negotans