Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-02-12
Sends Extensive Message to
Senate, Alleging Incompetency.
work Of Department a Travesty
on State Supervision"

u
"a. refused to concur in the governor ;
recommendation for the removal OF
supt. Kelsey.
There appears to be q marked an
ference Of opinion among the Senate
leaders as to whether Mr.. Kelsey shouli
have another hearing or whether the
Senate should act upon the governor
renewed recommendation without
further taking Of proof, The message
was laid upon the table "for the pres
ent," pending its printing as Senate
document.
The facts submitted" the governor
says, Establish beyond doubt that the
present superintendent has not meas
ured 70 the standard which the STATE
must maintain and upon which. III
Difference 10 the vast interests invoiVcd'
II ia riy duty, so far as my power goes
to insist.
Tho delay IL, instituting reforms thai
arc plainly needed" the governor says
further, THE failure to make fun ad-
vantage Of the machinery provided by
law for the protection of the rights
of policy holders. the lack OF proper
attention to matters, as to which IN"
department Is in a position greatly 10
aid the policy holders in securing the
proper fulilment of their contracts,
are without excuse
The governor says that he appreciates
unusual conditions which confronted
Supcrintendent Kelsey upon his taking
Office He adds, however:
But he had conspicuous advantages.
I
with the direlictions Of the department
known and with clearly defined obli-
cations which were not left for him
to discover but which We're whitten
large In the minds Of all the people
OF the state He WIS also equipped
with additional power.
Mr. Kelsey took Office on May 16.
1906, and has now served more than
one-half of his term. At the time Mr..
Fleming began the taking Of testimony
he had served for year ana five
months. He had full opportunity t.
show whether he was equal to his i'm
portant duties
superintendent Kelsey has failed to
properly rcorsaniZc the department
and thus to met an obvious obliga-
tion. The work of the department has
been travesty on state supervision.
Had It been a branch of the life insur-
ance companies themselves it could
have been hardly less effective In en-
forcing the rights of those for whose
protection it was supposed to exist.
THE superintendent has had a free
hand, as it appears that only three Of
his subordinates were veterans H
has had abundant time. But the hnus,
has not been cleaned"
"Thc only question" said the Gcv.r-
nor in his message, 'is Whether Il -
movml of the officer is N ;hc n rot
Of the service of the state
Il am not unmindful of the labor& o.
the department. Of the multiplicity Of
details with which it Is concerned. Of
the volume of its correspondence. o.
the many questions submitted to it
for decision and its required action
upon great variety Of matters under
the statute. Although to some extent
recently increased. these duties have
existed ard a vast amount of work
has been performed for many years
Yet sido by side with these depart
mental activities there grew up waste
fui and corrupt methods which scan
dallzed the country and brought the
supervision of tho department with re-
gard to the important interests of the
holders of life insurance policies into
contempt
IL became obvious that n DEPART
ment might exist with a large STAFF
apparently busily employed: that it's
iaoors might be represented in vol
uines OF reports: that it might make
recommendations for legislation and
pass upon multitude of questions in
the course of department routine with
ou1 taxing measures Of first import
ahce within its powers for the pre-
Fention OF abuses AMI the protection
OF the poliCyholde-s. There was prob
ABLY no time prior to the insurance
investigation of 1905 when the insur-
ance department could not have mad.
an imposing report Of the dihicultic
whlch It had to encounter the burden
II was required to bear and the in
cessant labors which it performed
But in that investigation. it also
appeared that If its energy had been
We'll directed and the department hal
been efficient in the true sense, most q
the scandal which was revealed. coulS
not have existed"
1T was not until about Noycnbc,
last and after Mr.. Fleming had began
MS Inquiries says the governor "Tha.
the superintendent began to requi--
such ad interim reports and hence ha E
been unfamiliar with important trans
actions and he has failed to make
such inquiry or protest as the nature
Of the transactions required.
THE demand for such supervision IS
'otirely reasonable and an admins
ration which for year and n hal.
mitted il is unworthy of continued
,onfidence"
In January, 1907. the stock coniro,
assed to those who apparently CON
1mplated the improper maniDuIat;on
Its funds. 1t appears that securities
large extent were sold and in.
cad OF being properly re-invested. the
Foceeds were placed in banks in
mich the purchasers of the stock We're
crested. Had the department been
atchfui and had it been its practice
secure reports, it would have hee,,
ny advised of the situation. Instead
\ was apparently in complete irno-.
ABOUT Sept. II Mr.. Kelsey was :,