New-York tribune., 1908-02-09
MUTUAL LIFE PROTEST
President Peabody Objects to for-
tions of Fleming Report.

>, letter addressed yesterday to Governor
r4,,sbes Charles A. Peabody president of the Nut
nal Life Insurance Company, took exception to
certain things in Matthew G Flemngs report On
Superintendent Kelsey's conduct OF the insurance
Department President Peabody objected to the un-
;,,a ,,roninence given by Mir. Fleming TO matters
pertaining to the Mutual Life
While he die not charge Mr.. Fleming with a d-
rect intention of attacking the Mutual Life, MI
Peabody said the facts elected from the company
in furtherance of his examination had been mace
,ba basis of comments which gave an erroneous
impression and OF insinuatons which were dls-
tnctly hurtful An ordinary reader he asserted
would gain an impression that the Mutual Lile
had been guilty of repeated violations of the IN
surance law which Superintendent Kelsey failed
10 detect though Mr.. Fleming did not undertake
TO give single instance of violation OF the LAY"
In the first place President Peabody pointed out
a considerable portion of Mr. Fleming report uedI'
with the subject OF various loans on collateral Sc
curity made by the insurance company or loans
made during 1906 1907 FIVE singled out Tor
mention. though only one came in for speciSa com
nent-that of s. etoGeo TO the Northern New fork
Development Company After quoting Mr. t1em-
ing's statement that the loan was 'unquestonaoy
we'll secured. and the only question IS whether
the market value of the collateral Is such as to
render valid under Section 100 of the insurance
law" President Peabody suggested that there Is
neither in that section nor in any other secuon Oh
the insurance law a provision which makes the
validity of investments by life insurance companies
In bonds or obligations. which makes the validity
OF loans upon such bonds obligations. dependent
upon market value.
Execution was taken also 10 blr. F1enings IN
timation that Superintendent Kelsey ought TO have
investigated to find out whether. in making some
of the loans the trustees Of the Mutual Life had
violated Section IS OF the insurance law thron&h
pecunary interest in purchases. loans or SAFES
''If ground OF suspicion exists that this stat
ute has been violated he wrote. lit is no doubt
loot f-ya
Attorney" The section referred to. he added, does
not touch any corporate action that comes within
the scope Of the powers OF the Superintendent or
Insurance
Mr.. Peabody objected that portion cf the re
pert that makes it appear as If the Mutual Ltes
accounting officers were still negligent in report
ing certain profits made during the year by the
sale of securities. He said that it was made 10
appear that this practice, which is condemned oy
the present administration Of the company, was
stiI in vogue. though Afr. Fleming really con-
| demned Mr.. Kelsey for not dscharging an old en-
ploye for not detecting the practice in 1904
Closer familiarity with facts from which he
| supposedly found reason 10 praise the insurance
commissioners of Michigan. kentucky and Tennes-
in the matter of the recent contested eectlohS
for trustees of the Mutual Life would, he wrote,
have prevented Mr.. Fleming from censuTing by In
timation the action of the conlpany's officials IN
these states. Mr. Peabody said also that Mr. Elem
! ing should have been less ambiguous in HIS eX-
pressions concerning the dividends OF the various
companies.
With the controversy pending as to whether
! or Mr.. Kelsey should be ret aimed IN office
| said Mr.. Peabody, this company has no concern;
but. in view of the injustice that has been done
TO It in the course OF the controversy. I feel i'm
! PEELED protest against the tse which has been
: made Of insuuation. and with no specific charge
! against the transactions of the company He
added that the grounds FOR complaint which ne
found in the report due probably to the fact
that the original charges referred TO Mr.. Fleming
for investigation showed extreme prejudice against
| the Mutual Life.