New-York tribune., 1908-02-03

perintendent Kelsey. for the report says that he
gave instructions that the provisions Of the law
must be complied with strictly. yet failed en-
tirely TO make definite rules Of conduct for the
various employees defining their responsibility
as TO specific things. Because OF this. il is as
serted. the subordinates charged generally with
certain duties failed or neglected TO perform
them in important instances which the report
Specifies
Under the heading ''TrUstfulness and Igno-
rance" the report cites many instances Of lax
ness in the management Of the department
which il ascTibes to those two cha racteristics Of
TIE Superintendent Il calls attention TO the re-
tention in Office Of one man IN the examiner s
bureau who likes TO take things easy another
who gives much OF his time TO political activities
and a third reinstated after having been dis
charged by a previous Superintendent for
drunkenness.
1t Is evident" says the report in this counec
tion. that there are indeed number of men In
the department whom, as Mr.. Kelsey says, he
would not think of employing if he were run
ming z private business. and about whom he
would discriminate a little if he We're hiring
them- He apparently does not realize that the
standard OF efficiency Of public official charged
with grave responsibilities should be at least as
high that OF one managing private bust
ness"
REOPENING OF KELSEY CASE EXPECTED
There is only one opinion among those here
who have seen Mr. FGeming's report TO the Gov
erno--that it means a reopening OF the Kelsey
case. and probably his removal this time. The
general belief is that the Governor soon viii
send another request 10 the Senate for Super
intendent kelsey's removal. with specific charges
based on Mr.. Fleming's findings. Probably also
additional insurance legislation viii be presented
tc carry out some OF the recommendations in the
report. which include increase Of salaries for the
Superintendent and actuary of the reorganized
department and the placing of insolvent insur-
snoe companies in charge Of the Superintendent
OF receivers named by him. with salaries and
counsel fees strictly limited
Mr- Fleming's report recites that on August
l. Of last year certain charges involving failure
. reoreanize the department and failure tY en-
force the law were fled with the Governor
against Superintendent Kelsey. These charges
were.
!. Failure to reorganize the Insurance De
partTent.
Failure 70 enforce the law. specified in
Charges Nos. 3 20 20. as follows:
,. Decrease in deferred dividends caused by
his neglect.
4 Failure TO require an apportionment Of
assets
;. Permitting false bookkeeping by insurance
companies
Z Permitting existence Of '-Nyiic'' d means
"a paying bonuses
Permitting determinations III dividends
aesinsr deferred dividend po!cyholders.
D. Permitting injustice TO small pollcyhoiders
= connect-gn with loans
N Failure 10 require full. true and honest re-
ports from Insurance companies
Il Permitting lying advertisements.
y. Refusing Information 10 policy cyhoideTs-
l& Failure 70 compel sale Of stocks, notes ana
collateral trust bonds.
Il Permitting the Equitable to hold traction.
gas and Union Pacific stocks.
=. Permitting the Mutual to hold ILLINOIS
Central stock % help Edward H Hartman
10 Failure TO look into alleged Use OF com
ranies funds ia the recent insurance elections
L Failure take action on Industrial insur-
aace
surplus
u. Failure TO secure for policyholders the
benefits Of mutually
%. Failure to brand Mr Hartman dis