New-York tribune., 1908-08-11
SALE PROBABLY MADE
pROYTDENT NEGOTTATION
Inter-Southern SAID to Haze Put Up
Collateral to Bind Deal.

= co. -ba n,,rchase of the controlling
-, % the Frovident Savings Life Assurance
Society by the Inter-Southern Lie insurance
<--,arv or interests representing the latter
arasnst which Provident policyholders from aii
narts of the United states and Canaoa are
making a determined opposition
rrbe ontion on the 1049 shares of Provident
s,ocl, ;n the hands Of several banks which the
1,uisy5ue interests obtained was to expire yes
,.-aax Tn 70 3:15 O'Clock they had not. IL
80 sasa nroduced the S253.175 necessary 10
,ose the deal but shortly after, it is asserted
,h. Tnter-Southern promoters put up collateral
,sr-essnting that amount with the Fourth Ma
.,onal Rank. holding the stock in escrow Inc
hank II is understood. asked for time to exam
ine the collateral
rrba directors of the Provident met in the
morning and adjourned until $3.50 O'Clock Ihey
met again at that hour. and after session oI
a little more than half an hour announcer ao-
1ournuent was taken until this morning ohe
Of the stated objects of the directors meeting
was TO elect officers and several ne" oHeo'oi''
This business left undone.
The sale of the majority stock of the Provl-
Zen, means the elimination Of the seven Phia-
de,nhia directors. of whom five were present at
xesfer5ays meeting The failure to elect officers
and directors yesterday, it was said, indicated
that the board would await certain develop
nents before changing the personnel OF the
directorate the developments" meaning, or
course, the closing of the sale of control to the
Tnter-Southern None of the directors would
tell what happened at the meeting. nor would
they discuss any phase of the situation
Roval Victor. of the firm of Sullivan & Crorn-
well attorneys for the banks holding the stock.
and also a director Of the Provident said that
ne probably would have statement to give out
to-day one Of the Louisville promoters said
the same thing last night
PROBABLY TRUE" SAYS PROMOTER
As 70 the report of the Inter-Southern putting
nm the necessary collateral 10 bind the deal for.
the Proyident stock this man said: If you have
that from good authority, why. then, 1t is prob
ably so"
Timothy l. Woodruff. a Provident director.
was in this city yesterday, coming here from
his Adirondack camp. but he did not attend the
meeting Of the board. The policyholders look
10 Mr Woodruff to help Illustrate the proposed
sale 10 the Louisville people
Notwithstanding that il seemed yesterday
the protests Of the Provident policyholders
would go for nought and that their efforts to
prevent the sale had been defeated, they still
adhered resolutely TO their purpose. S. Herbert
Wolfe. the actuary who represents the Colorado
r,olicvholders and was elected chairman of the
New York committee yesterday, said that 1t
had not Yet been decided what action the pol
icyholders would take. But" he said, the
policyholders will take all necessary steps to
prevent their vested interests suffering by rea-
son OF any change Of the controlling interest Of
stock
Those present at the poicyholders' meeting
yesterday were Albert Fraser. banker; r. P
Taylor, of the General Construction Company;
William s. Opdyke, lawyer; ]. Romano Brown
real estate: r. H Adams. Of the American Lin
seed Oil COMPANY and Douglas Macintosh
architect They asked Mr.. Wolfe to act as
chairman of the committee. Senator w w
Booth of Denver chairman Of the Colorado
rolicyholders' committee, in q letter to Mr-
Wolfe announced that the latter represented
100000 Of insurance in the Proyident- Among
the members are Senator Guggenheim. ex-Rep-
resentative Brooks. W. F r Mills secretary of
the Denver Chamber of Commerce, and John
F Vivian. Of the Republican State Committee.
Protests have been invited from pohcyholders
all over the country. and they are coming in
rapidly, some from Texas, California and Can
ada
IMPROPER USE OF ASSETS"
Mr. Wolfe made the following statement of the
situation:
To those who are familiar with all the facts OF
this attempt prevent the further looting of the
poiicyholders funds IL is needless TO say that
in way interested in having the stock OF the
IroTident Savings sold 10 any other company or
10 any group Of individuals; As a policyholder
am interested solely in having the society placed
every contract at its maturity l shall take every
step in my power TO prevent any further improper
use OF me assets oI me soce5Ny-, ,,.,o a., -
loine ~ the assets Ia holster the tnterins str,cf-
ure Of any iusolvent company, the payment OF
salaries fees TO politicians for alleged services
in appraising real estate or otherwise the use of
the societys funds TO enable group of spectators
recoup themselves for outlays in the purchase OF
Of exorbitant outrageous and indefensible counsel
10 have hack Of me ali of the respectable elements
concerned The significant action taken by the
indication of the way in which the policyhoders
II Is manifestly improper to permit any ire
sponsible speculator who can raise, by hook or
Of stock be custodian Of ss.00oOoO Of assets
belonging 10 the poilcyholdeTs OF an a insurance
thing for their benefciaries This is not new
poration law OF the State Of New York specifically
provides that policyholders. whether or not they
be stockholders shall be eligible to- election as di-
reGtors Of an insurance, ,GorpG0ratloT5, -, 40
posed 10 Mr. KELSEY that he all his power TO
have this permission made operative. and he has
received from Mr. KELSEY assurances Of his ap-
proval Of this idea and his agreement TO use every
representation on the board by four or five proni,
to look after their own interests.
one OF the amusing discoveries" made by some
Of the papers is that the confidential report OF
examination made by me Of the lnter-Southern
Life Insurance Company for the Kentucky de-
partrnent was made use Of by in this fight 10
prevent the reinsurance Of the ProVdent Savings
In that comnanv. All who familiar with in
surance ma fterS are aware that printed copies Of
my report we're circulated months by some
dissatisfied stockholders Of the Inter-Southern
Life. who attempted to use the disclosures made
therein for the enforced retirement Of the men
responsible for the evils
EXAMINING PROVIDENT AGAIN.
It was said yesterday that the amount depos-
tied by the Louisville syndicate for the option