Waterbury evening Democrat., 1908-02-25
KELSEY HITS FLEMING
Insurance Head Replies to In
vestigator's Report.
HE JUSTIFIES ALL HIS ACTS.

Asserts That Hughes Prober Knows
Little About Law and That Recon-
mendation by Governor For Removal
Is Based Upon Newspaper Charges.
Albany, N. u. Feb. 25.-Otto Kel-
sey's reply to the report of Matthew
G. Fleming and the message of Gov
ernor Hughes, asking, for his removal
from the office of state superintendent
of insurance, was sent to the state SEN
ate, ordered printed and laid upon the
table The resolution of the senate
will take Kelsey's answer from the ta-
BILE tomorrow, when vote will be
reached on the governors message.
Kelsey in his reply to the senate an
swering the charges of Mr.. Fleming,
suggests that Fleming doesn't know Il
great deal about law and much less
about insurance law than about the
general statutes. He says that Flem-
ing instead of attempting to get at
facts built up case for himself or for
the governor upon the reckless, ire
sponsible and speculative headlines of
a newspaper"
Kelsey says that the charges o
which the governor seeks to remove
him were made by newspaper, but
that the proprietor, the editor and no
other responsible person connected
with the publication signed the conf
plant. He expresses surprise that a
man calling himself a lawyer should
attempt to investigate charges for
which no person made himself respon-
sible, and then he accuses Fleming Of
ignorance even in respect Of the anony-
nous charges.
He says that the proceedings con-
Quoted against him were never at any
time judicial in character; that they
were farcical because of Fleming's gen.
eral ignorance and that wherever
Fleming did find something to be true
with regard to the charges Fleming
didn't seem to have sense enough to
know that the conditions complained
of existed before Kelsey became state
superintendent of insurance and not
thereafter.
On the charge that Assistant Ac-
tuary Keefer was employed by an in
surance company to do work Kelsey
answers that in the first place the
work was done several years ago and
that charge was passed upon by the
senate last year. He asserts that until
the last two or three years il was con-
sidered legitimate everywhere for ac-
tuaries or examiners of insurance de-
partments to do outside work where II
did not conflict with their official du-
ties. Kelsey says that 1t is character
istic of E'leming's report and tits many
insinuations' that there should be crit
icism OF Keefer because he has three
sons employed with insurance compa-
nies. He calls Fleming's references
petty innuendoes and doesn't believe
they ought to receive further consid-
GRAFTON. He takes up the charge that
the time Of another examiner was CIV
ell up largely TO politics.
Kelsey asserts this man had a leave
of absence when he was doing political
work, that he wasn't paid by the state
during this leave of absence and that
he is not now in the service of the de-
partment. Kelsey admits he reinstat-
cd an employee who had been dis
charged by previous superintendent
for drunkenness. He defends his act
on the ground that the man, who was
graduated from Yale. made a pledge
to abstain from intoxicating liquors
and Is now one of the most capable
employees in the department.
Kelsey sneers at Flemings criticism
that Mr.. Patterson, the chief actuary
of the department. failed to discover
the true condition OF the policy re-
Serve in 1902 and 1903. He said that
if Mr.. Fleming knew anything he
would have learned that the Washing
ton Life deliberately misled the insur-
ance departments of several states
by juggling the reports submitted. and
he intimates that If Fleming intended
10 be fair he would not hold the state
superintendent of insurance RESPONSE
BILE for a matter relating TO the in
tegrity Of life insurance officials con-
nected with presumably solvent cor
poration.
In respect OF the charge that he fall
Cd TO investigate the alleged use of
companies funds in the recent insur-
ance election. Kelsey says that all the
complaints and correspondence were
submitted TO the senate last session:
that. as a matter of fact. he did carry
out the law and that the only com
plant seems to be that he followed
the rulings Of the supreme court in
stead Of the opinions of NJ. Fleming
Similarly. in relation TO his alleged
failure TO take proper action about
dividends. apportionment Of assets and
apportionment u surplus. Kelsey says
that be did what he was advised was
proper BY the attorney general of the
state. who Is his statutory legal ad-
wiser. and that he prefers Tire attor-
ney generals opinion 20 the Judgment
Of Mr.. Fleming.
Ishaess. oidess Native Oe-d.