New-York tribune., 1908-02-12

tendent should be fully alive TO the exisency end
Mr. Kelsey tcok once on N May Is, 1aos. and has
f [eq M 0T than & oneha b his term @ Al }n1
ne had served for a year and five months He had
nad till opportunity TO show whether he was equal
But the facts submitted establish beyond cavil
mp to the standard which the state must maintain
involved. II is my duty, so far as my power goes,
Superintendent Kelsey has failed properly to
Obvious obligation The work Of The Department ,fI
been branch Of the life insurance companies
IN enforcing the rights of those for whose nro-
tect1on II was supposed 10 exist 1t must han
and TO establish it upon proper basis that thor.
ro5fine uor nI ef ssIf IS i irentions en-
avail to obscure this paramount duty -.
appears thst on2 3hre e Of a his subeTdnat wer
veterans. He has had abundant time But tie
Mr. vanderpoel and Mr.. Hunter. whose retention
ton was made the subject Of Criticism last year
resigned and left the department at the end OF
arinins force has been strengthened by tne 9R-
little has been done to improve the efficiency and
trustworthiness of the organization Ihose & wEoFe i
There been apgs2pTiate effort g tho to icDar FIX re-
Inent and determine by suitable inquiry upon
tendent has also failed to give specific instructions
in order TO guard against repetition or negleGfl
4
occur and have occurred Thus, in the annual
statements filed last year Of December 81 $50.
transactions appeared which, under the ruling OF
the superintendent. were Illegal, but they passed
unnotiCed until AIr F1eInings examination Il. as
now stated, the reports themselves erroneous
COMPANY does the Gepar tiflental
work from the diScredit OF failure TO discover the
transactions which, the face of the reports as
filed, contrary 10 law. So, also the omission
of particulars required by the statute 10 ne made
the annual statement, and other matters which
forth and which plainly demanded IN
quiry, escaped attention.
In the insurance investigation il was urged that
the department of audit only; that It's
business to attest the soVency OF the COM
panies and supervise their management
In testifyfng before Judiciary Committee or
tant matter of audit the superintendent thus de
scribed the work of his statistical bureau tFro-
ceedings. ed 1907. page 43 ed. l09S pages so-so1:
The financial statements turned over 10 the
statistician and he audius them and makes tie
abstracts and ta5ula lions trat appear n the an
nual report
q. What ara the other duties in connection
with that? Is there any audit OF annual state
ments? A ! stated that when was speaking pc
fore they all audited by the statlstcian ana
it requires frequently voluminous correspondence;
various items conditions need explanation or
correction. the putting in Of assets that are not 10
be admitted. and frequently number OF letters are
written back and forth before the account is prop
erly stated and filed. -,
q. Is there any examination with respect 10 the
securities2 A. Yes. sir.
q. What is that? A. AS 10 the veTff1cation OF
it-as the values, the market quotations, the
amount they claim credit for-whether they are
accurate not; all of that is gone through ana
corrected.
denarrue-t7