The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-30
Jerseys Former Governor
Tells of Bankers Life In
surance Troubles.
STOKES BROTHER CALLED
Former Executive Volunteers to
Appear When He Hears That
jerome Has. SubpoenOed
His Old Associates in
Financial Circles.

NEW YORK. Jan. S0.-Former Gov
ernor Fotser NJ. voorhees,, of New Jer-
sey, former president of the Bankers
Life Insurance Company; w. H.
Stokes, former treasurer. and w. H.
Coombs, former secretary of the corn
pany, appeared today before the Grand
Jury. Mr.. Stokes is a bl other of ex-
Governor Stokes, Of New Jeresy.
The investigation was called because
of discoveries which the present Off
GERS of the Bankers Life made after
the recent change in stock ownership.
Informal information was laid before
Superintendent of Insurance Otto Kel-
sey, which purported to show that an
impairment of capital in the Bankers
Life, existing at the end of several
previous years, had been concealed by
means of entries in the company's re-
ports to the State Insurance Depart
ment.
Subsequently the facts were brought
to the attention of District Attorney
JEROME by Mr.. Kelsey. and Mr.. Smythe,
Mr. Jerome's assistant, decided that
here was case which called for ac-
tion by the district attorneys office,
The summoning of some of the former
officers was the result.
The charge that there were irreg-
qlarities In former reports made by the
company to Superintendent Kelsey, of
the State Insurance Department, was
made to the superintendent by the new
management and by him was referred
to District Attorney Jerome. Assistant
District Attorneys Smythe and Apple
ton made careful investigation of the
accusations, and what they found de-
rided them to place the matter before
he special Grand Jury.
II is charged that the reports to the
State Insurance Department gave
wrong figures as to the financial stand
ing Of the company at the end of the
year 1906 as we'll as for some preced
ing years. Mr.. Voorhees, was not sub
poenaed as a witness, but when he
heard the other officers had been sum
moned he said he desired to be heard,
and he was taken before the Grand
Jury and was questioned by Mr.
Smythe. Mr.. Coombs was en- hand, but
he was not called as a witness.
In his last annual report Superintendent
Kelsey embodied an extensive memoran-
dunn dealing with the Bankers' Life Insur-
ance Company. This memorandum is dated
August Is, 1907. The concluding part Of
the memorandum is:
Upon the evidence furnished in the re-
port the superintendent at once conferred
with the district attorneys office bf the
county. of New York as to instltutlng
criminal proceedings against certain per-
sons apparently implicated in violations of
law In conducting the business OF the COM
pany and in making an official statement
OF its financial condition TO the State In
surance Department for the year ending
December 81, 1904 The superintendent was
advised that by reason OF an immediate
pressure of criminal business upon tha
district attorney that matter so received
could net be acted upon until the month
of September next d90O, when the owl
dence would 10 presented to a Grand
Jury
It is known here that Mr.. Kelsey turned
over to the district attorney of New YorS
County all the incriminating evidence as
sembled by the department against certain
officers of the Bankers Life Insurance
Company, reference 10 which was family
made in the last annual report by aste.-
isks, indicating that omissions had been
nurposely made So as not to defeat the
euds OF justice by publishing the specific
allegations upon which Mr.. Kelsey desired
that criminal prosecutions should be based.