New-York tribune., 1908-03-01
DENIAL BY WOODRUFF
NO FAVOR FROM KELSEY.
Charges Concerning Prouident Life
and Senate TOte Untrue, He Says.

Timothy L. Woodruff. chairman of the Repub-
can State Committee made public yesterday a
letter that he had sent to the editor of "The
World" replying to an editorial which that paper
published in which IL ntmated that Mr..
Woodruff influencing Senators to vote against
the recommendation of Governor Hughes to
Superintendent Kelsey of the Insurance Department.
because of tho lenient way that Mr.. Kelsey treated
the Provdent Life Assurance Society, of which
Mr. Woodruff was at time president
The State Chairman begins his letter with the
statement that the admitted facts completely dis
prove the assertions made in the editorial,
continues:
The votes of four Republican Senator'S from Long
Island, with whom l could be expected to WELD
more influence than with any other Senators.
ernor Hughess recommendation for removal /
this was an not te5 hea strictly to the notion that
dlciai question. and one for each Senator decide
political influence has been exerted in this case
either by President Roosevelt you imply in the
else. is absolutely false
In taking up his relations with the Provident
Life Mr.. Woodruff says that had Superintendent
Kelsey fit to investigate It while he presi-
dent he would have found nothing to critieise and
adds that when the Commissioner of Colorado made
an adverse report on the management of the
ciety, in October. he had been since the pre-
cedEg December. He then says:
You say in your editorial that 1 chairman
of the finance committee of which the two Thom-
ases were members L was never chairman of the
December. 1906 The Messrs. Thomas, who bought
pay the proceeds quarter million
and officers of several banks and trust companies,
and they at reorganzed the board of directors
nostiy presidens of large dnancial institutions to
constitute a majority. This board of theirs then
Thomas chairman and at once elected O. +.
the powers of the president until practical in
surance man could be secured to take the position
not n however insist upon m the aecepanc of my
resignation at once. in order that they might have
with the distinct understanding that 1 was not to
be called to take any hand in the management
Of the society. l then went with my family TO
Europe.
Mr.. Woodruff calls attention to the fact that
sale of the gilt edged securities which, ac-
cording to THE World. were sold by the Thomases.
deposited in their banks and lent to them
selves took place while he was in Europe. He
points out that the securities that were sold con-
sisted of New York City corporate stock which
brought per more than was paid for it;
United States bonds which netted less than per
cent income. Japanese bonds which had matured'
Merchants Exchange Bank stock which had TO be
sold under a provision of the Armstrong law ana
was disposed of at a profit. and other securities
which were later repurchased at price less than
that for which they sold that the meney was
deposited in banks supposed at the time to be per-
fectly sound, and that so far as the borrowing or
the money by the Thomases concerned neither
anything about it. The letter continues:
In these references TO transactions made during
1907 do not want be understood as defending or
accusing any one or passing judgment upon the
transactions. my only object being to show that
there was nothing in my relations to the Provident
threushout et the year 1905 or during my
auas-connection with it, which would justify even
a suggestion that Superintendent Kelsey treated
KELSEY to hush this matter up2' / answer. Not
a word" You say. What favors did you ask of
m and Of h5 snv ne In eW of the
which show that there was nothing IN my
to favors received given constitutes an accusat
ton against Superintendent Kelsey and myself
which ought not to be ignored by either of US. ana
should be resented by every decent cltzen OF "u
The assertion made by 1.-THE Word' that Mr.
Rittenhouse the Colorado Commissioner, deserved
the credit for the examinations Of the society Is 'he
taken up Mr. Woodruff says that Mr.. Kelsey and
Mr. Rittenhouse worked together from the nrst
step but that the Colorado Commissioner published
his report first because he was not conipeHeu 10
grant a hearing before the publication. as was MT
Kelsey. Mr.. Woodruff then refers 10 the fact that
he was induced again TO assume control OF the So
ciety follows:
Immediately following the insurance investigation
not before it, as Tie Syracuse Herald, stated
editorially in commenting on your edtorial.d was
agents greatly against my inclination. and at the
financial sacrifice OF giving up ofices III oon9I n
companies. the salaries Of which We're very con-
siderable, to take the presidency OF the troTldet @
Assurance Society IN OrOer 10 pIotttt
the interests of the policy holders having insurance
amounting hundred millions of dollars; -,
During the year of my presidency | reduced the
expenses of the society more than $2DoVth, HaVlhs
placed the management OF It's affairs on pusanes iL
like and economical basis. | sold the stock Whl,
! had purchased upon the urgent appeal or the
board of directors and officers. | made TINS SAFE
primarily for the purpose of Strengthening the m
st;ution financially, as l was able out OF the the pro pro
ceeGs of the sale pay into the society treasury
500 coo and to lquidate two debts of the society
amounting TO sl55Oo0 which L was under no legal!
but felt / was under moral, obligation TO DO, III
the interests Of the 50 600 policyholders.