New-York tribune., 1908-08-09
KELSEY ACTS AGAIN
TO RE-PROBE Proficient.
WoOdruf Promises to Do Al He
Can for PoIcyhOlderS.

Superintendent Kelsey of the New York In
animation into the affairs of the Provident Saw
ings Life Assurance Society. The company ,'e
ceived the notice yesterday that Mr.. Kelsey
has assigned Nelson B. Hadley. chief examiner
of the Insurance Department, to make the ex-
animation. Mr.. Hadley will begin the work
tomorrow. He will proba bly, go especially into
the questions of the efficiency and economy
Of the manag cement of the Provident.
The Insurance Department ordered the Provi-
dent last December 10 cease writing new busi-
ness. Mr.. Hadley. in his report of the first
examination, criticised the cement, say
ing, among other things
If it Ghe company hopes TO repair its con-
ditions so that it can do new business, it must
be controlled honestly. economically and eff
Ciently. It must have something besides names
on its directorate.
Since the date of that examination when the
impairment reported was $4,000 the com
pany has improved its condition by nearly
100000.
pressed in his report that by economy and
good management the society would eventually
be in a position TO be permitted to issue new
business is rapidly being confirmed, it is said.
The powers of a state insurance examiner
under such circumstances the present are
broad and far reaching. The Superintendent
of Insurance has the authority to make exam
nations of companies as often as he deems It
expedient, and upon such examination his rep
resentative may examine under oath the officers
and agents of such corporation. He has also
the authority to examine all persons whom he
believes TO have material information regard
ing the company's property or business. All
books. papers and documents called for by the
examiner must be produced.
The action of Mr.. Kelsey, it is said, especially
in view of the recent agitation and discussion
over the Provident is likely to give the policy
holders confidence that their interests are being
safeguarded. The examination will probably
take three or four DAYS
Timothy l. Woodruff, who is director and
stockholder in the Provident sent a telegram
TO an official of the company yesterday from his
camp in the Adirondacks saying that he al
WAYS and under all circumstances would do his
best to serve the interests of the pocyholders
Mr. Woodruff il is said. has placed his stock
with that held by several banks which
irving to sell it Commissioner Rittenhouse of
the Colorado Insurance Department had sent
telegram TO Mr. Woodruff. asking the latter if
he would do all in his power to prevent the sale
to the Inter Southern Insurance COMPANY of
Louisville of the controlling stock of the Provi-
dent The influence of Mr.. Woodruff is expected
to keep the company intact He will he in New
York tomorrow, and probably will attend the
meeting of the Provtdent directors scheduled for
then
Superintendent Kelsey came to this city yes
terday but had not yet decided what le would do
with regard the opposition to the sale Of the
Provident to the Louisville concern.
One OF the promoters interested in the latter
deal said yesterday that the money necessary
10 make good the option the stock tomorrow
would surely be forthcoming at that time So
far as is known. the promoters of the deal have
been unable to obtain the money which is about
S253Oo0 The option expires tomorrow.
S H Wolfe actuary for the Colorado Insur-
ance Department, received Yesterday the follow
ing telegram from Commissioner Rittenhouse:
Representatives of Colorado policyholders'
committee should be admitted to be present at
negotiations for sale of Provident Society. In
answer TO my telegram urging their assistance
TO procure an agreement for liberal represen-
tation the board of directors and finance
committee in any sale Of the society. Superin-
tendent Otto Kelsey said: This department
will do everything possible to further this plan"
He believes it right that policyhoders should
ganize to watch their interests. Timothy L,
Woodruff advises he viii do everything he
in conjunction with the Colorado committee to
protect policyholders. Royal Victor, OF Sulli-
van & Cromwell. wires he will welcome oppor-
tunity TO confer with representatives of the poll
cyhoders' committee and use every influence to
obtain policyhoders representation in any
ner practicable indicated by committee. s. II
Wolfe has been authorized representative of
Colorado policyhoders' committee. Mr.. Wolfe
and all members of the committee will serve
without pay.
The telegram received by Commissioner Rt-
tenhouse from Mr. Woodruff is similar 10 the
one that Mr. Woodruff sent 10 an official of the
Provident Society YESTERDAY II also prac-
tically answers the question that the Colorado
Insurance Commissioner put to him regarding
his position