The sun. [volume] (New York [N.Y.]) 1833-1916, 1908-08-09
NEW PROVIDENT LIFE DEAL
SALE TO SOUTHERNERS LIKELY
TO FALL THROUGH TOMORROW.

Expects to Make an Improved Showing
Its Merger With the Columbian Ma
tiOnal OF Boston Seems to BE Probable.
There were indications yesterday hat
the plan Of the Southern syndicate to close
the deal for the majority stock Of the Provi-
dent Savings Life Assurance Society when
the Provident Life directors meet to-mor-
row afternoon will fall through for several
reasons.
Even II the syndicate is able to raise
the 1858, 775 which it must deposit with the
Fourth National Bank on Monday to bind
the deal, and the banks holding the stock
decide to sell in spite of the determined OPP
position OF the policyholders. IL is expected
that some legal move will be taken by the
policyholders to hold up the deal pending
the suit begun by Judge Norman @. Kittrell.
a Texas p~olicyholder. who contends that
the policyholders lave an interest in the
majority stock held by the banks. and that
It cannot be sold without the consent Of
the polioyholders.
Furthermore an announcement was made
by the Provident Life which is calculated
to encourage the ~polioyholders to fight to
prevent the company from being sold to
another concern. This announcement said:
The company has been notified that Supt.
Kelsey has instructed Nelson II. Hadley. the
chief examiner of the department, to examine
further into the affairs Of the company. espe-
cially on questions relating to the efficiency
and economy Of the management.
Last December when the company was
instructed to cease writing new business Mr..
Hadley's report on the examination criticized
the management and stated:
IF it tthe company hopes to repair It's
condition so that 1t can do new business It
must be controlled honestly. economically
and efficiently. 1t must have something be-
sides names on its directorate"
Since the date OF the examination the SOM
pany has improved its position by nearly
s200. 900. 80 that the opinion expressed by
Examiner Hadley In his report. that by
economy and good management the society
will eventually be In a position to be per-
mitted to issue new business. is being rapidly
confirmed by the results.
The powers Of an examiner in circum-
stances like these are very broad and are
defined by the insurance law, which author
ICES the Superintendent to make exapina-
tions as often as he deems e~xpedient, and
upon such examination any person authorized
by him may examine under oath the officers
and agents Of such corporation and all per-
oSaS SSheS ~ AeN - - hAS 70
garding the company's property or business.
All books. papers and documents called for
by such examiner must be r.oduced. In
view of the recent discussio'I and agitation,
this action by, the Superint endent will give
policyholders confidence that their interests
are being properly safeguarded. 1t Is UNDER
stood that Mr.. Eadley will start his investiga-
ton Monday.
Word was received here Yesterday from
Insurance Commissions Rittenhouse OF
Colorado that he has received replies to
the kilograms sent by him to Timothy L..
Wooorur. Supt. Kelsey and Sullivan 4
Cromwell regarding the plan 10 turn the
company over to the Southern syndicate.
A telegram received at the Office of s. H.
Wolfe. the insurance actuary. Of los Broad
way, said:
Representatives OF Colorado policyholders.
committee should. be admitted to, present
society. In answer to my telegram urging their
assistance 70 secure an agreement for liberal
Society soe a1 sapt. R Ss%@l ssss. lfh IN" aep sals en- VII Viii
do 'T eyHsr e! Moosr pSss. aSSi. TO f ss %iIl ' 81 s plsn;-
thing he can in conjunction wit h the Colorado
eGmmittee to protect policy holders. Royal
sentative policy holders and use every .iniu-
In any manner indicated by the committee.
s.. II. Wolfe has been authorized to act as
representative of the Colorado policy hold
ers' committee. Mr.. Wolfe and all members
will serve without pay.
P~olicyholders took these kilograms to
mean that there had been a decided change
Of attitude toward them since last Monday.
On that day Supt, Kelsey conferred with
the representatives of the Southern syndi-
cate and with MIR. Victor, and policyholders
who weat to the office Of the Insurance
Department COUNT get in. ~
There was a strong feeling yesterday
that in view of the recent good showing |
of the Provident Life and the probability !
that the I~nter-Southern is out of il, the
Provident Life would he merged with the
Columbian National Life Of Boston, a strong |
company which madea bid for the Provident
Life stock only a little below that OF the
Southern syndicate.
Supt. Kelsey was at his Office at II Broad
way all day yesterday and saw several of
the officials Of the Provident Life and one
or two Of the stockholders. Mr.. Kelsey
Life case thoroughly and had learned much
about the proposed deal with the Southern
syndicate. He ga id that the p~olicyholders
had no reason { o fear that any act of his
would be detrime ntal to the best interests
of the Provident Life.
Those who call ed on Mr.. Kelsey got the
idea that the new examination of the Provi-
dent Life has been decided on in order to
give the Insuranc g Department authority
while the examination is on. BY this means.
il the Southern syndicate manage to get
the stock Supt. Kelsey will turn his atten-
ton from the society to the syndicate n
find out al ] about the deal.