New-York tribune., 1908-02-03

registers of the company in his department and
/ investigated 1t.
AS to Mr.. Keefer, soon after the Super
intendent took office the assistant actuary hand
ed him statement of his connection with the
Binghamton Insurance company, saying that his
work for it was done at home; that both Henry
d. Appleton, the second deputy. and Mr.. PateT-
son urged him to accept the place: that there
after he did examine this company cal
culate its reserve, and that a $1,000 loan OBJ
| tanned from 1t was collateral and was repaid
in 1903. Mr.. Kelsey, hazy about details of this
connection. expressed himself satisfied, and
| did not inquire further.
Inquiry would have revealed says the re-
| port, that while Mr. Keefer was receiving this
salary he had charge of the registered policies
! of the Security Mutual in the department. cal
culated the reserves on these policies and had
| charge OF the correspondence relating 10 that
company; that when Mr.. Paterson was away
he was the head of the actuarial bureau and
that collateral for the 81 800 loan he de-
posted S1.J0 in stock of the Park Slate Com
pany which had just been organized, had never
paid dividend and for which there was no
market, far s Mr. Keefer knows Mr.
keefer also has three connected with in
surance companies.
JOHN ]. CUNNINGHAM EXAMINED
Mr.. Kelsey did examine John ] Cunningham
who used to live with Andrew c. Fields and found
'hat this empioye was only office clerk in the
New York office. He did not examine specially
the examiners to ascertain where Law the fault
tor past laxness. One these men saws the re-
port is sxty-ive years old and has been away
considerable length of time; another likes to
take things easy" according to Nelson B. Hadley
special examiner of life companies. recently ap-
pointed by Mr.. Kelsey: another gives much time t,
politics. to the detriment of his work, a fourth
is former employe discharged for drunkenness.
The acting first deputy in charge OF them says he
might get better service from others. The report
continues:
Whether. had Mr.. Kelsey chosen to inquire into
cases ike those above mentioned facts would have
developed resulting in the removal of any empoye
fact that during almost a wear and a half he has
faIed to MAKE these very obvious Investigations is
ton For he states that while there may be men
employing If he were running private business
the the matter is is not serious enough to make him feel
c,r i,e mere are men about whom he would dis
evidently considers that he should not @ njnre them
by dischargng them unless they commit some
Taking up the charge that Superintendent Kelsey
failed TO Investigate the alleged of insurance
companies agency forces and funds IN the recent
insurance elections the report details activities
Of Commissioners Barry of Michigan and Folk and
Prewitt Of Tennessee and Kentucky. who. without
being able TO prove their cases. made exhaustive
Investigations of similar charges. with elaborate
taking of testimony. while Commissioner Prewitt
even tried to revoke the license of the Mutual 10
do business Kentucky.
The fact that insurance commissioners remote
from the scene of action and dealing with COM
panies not OF their own states. however were un-
able to prove that the of managers were at |
thorized by executive officers of the companies
nishes no criterion of what Mr.. Kelsey might have
accomplished had he conducted effective inquiries
promptly, comments the report. Mr. Kelsey il |
says. was in an extremely strong position" but |
seems to have contented himself with forwarding |
tc the companies copy of the charges and asking
Tor an explanation Not a single person |
examined under oath, although one of the agents |
complained of resided in Albany and when officers
Of the Mutual objected furnishing affidavits Mr.
Kelsey did not compel them to do
DIVIDENDS FOR ADVERTISING EFFECTS |
OF the superintendent's fAlure to take proper
action regarding dividends and the apportlonment |
of assets and surplus, the report says:
While it was Mr. Kelsey's impression that his |
actuary Is looking into the question of dividends.
Mr Paterson states that he is not engaged, al
matters should be et fr nf een tha' ma tau sgc
sibly be dividend earned at the end of the frst
opinion of tho officers and directors of the COM
panies. and that some would be more Inclined |
The advertising effect of IT.
Certain technical information necessary to a
proper handling of this question it goes on never
mas been called Tor by the department. Policy
holders therefore have received light as 20 why
the deferred dividends had grown smaller This
whole subject "is with which a properly
equipped insurance department is peculiarly adapt
ed to deal" The New York department now can
obtain all the information necessary for proper
and render great public ser
vice in stating conditions after thorough inves-
tiGation.
OF the recent sales of securities owred by the
insurance companies the report says:
ctpclyr hold
81 1905, set forth In exhibit No IL OF these
the company sold the following during 1906
Par Consideration
Chicago. Milwaukee & pre-
Morris Tsex Railway 5oSoo S5s4.s as4!s 81 81
Pennsyyania Railway. ........... 25O01 l. rs ss4 -
Bank tent:re holdInsl.. 100000 5is3Is ss
Mutual Alliance Trust Company
Lawyers Mortgage Company 80. 80 600 SS594 90
Between January and September T.. 1907 the
Mutual Life sold the following stocks:
Par Consideration
Astor National Bank centre hold
-awysrs Mortgage Company centre '.O'''O s'-"l %
Fifth Avenue Trus, Company zen
The last named stock was sold on Nav II. 1907
cember 81, 1896, being reported $685. 000 The
States Mortgage ard Trust Company stock to Mr.
George M cumming.
The stocks held by the Equitable Life on Deeern-
ber 81, 1865 are given in Exhibit No. Il;
Its report for the year ending December 81. 1906
Rapid Transit Company stock for $685.
rborough Meropolitan coiiatera trust tl Us
due 1856 both of which It held on September a.
s2e65o ico shaTss of Mereantiis
$3.50 of the collateral trust 4i2s. all Of which il
500 sos # Z" received through Chicago NorthWesern
rights in 2323 shares Of the common stock Of that
said stock. The society states. how