New-York tribune., 1908-08-12
PROVIDENT LIFE SOLD
BOUTHERN MEN CONTROL.
Plan to Reinsure In or Merge With
Louisville Com pdny.

dent Savings Life Assurance Society to the Inter-
Southern Life Insurance Company. OF louisVine'
or to syndicate composed largely OF men loeh1f
fed with that company. was completed yesteruas.
At the adjourned meeting of the Provident ooard
of directors to-day the Louisville men VIII Dc
placed In complete control of the society
The election OF officers and directors was deferreo
yesterday because the slate of officers and seven
directors the latter to succeed the Philadelphia
members of the board, who will be eliminated oy
the sale had not been made up. II is understooo
that Arthur @. Langham. of Louisville VINO mas
been interested in the negotiations. VIII be eieeteu
president of the Provident When seen iast nsn'
Mr. Langham suavely and smilnsly reIused ~
discuss the purchase or the probaoiiiy thde ~
would become president, except to say IhdI nc
would accept the presidency If it were oHereu u
him.
Mr. Iangham added that he had suggested 70
his colleagues the advisabty Of making soi"7
sort of public statement. There was a CONFER
of the louisville men at the Hotel bellnol'
last night. Some Of those present were = l.
Coffin counsel for the Inter-Southern; b. b. baleS'
general manager. and Floyd Day. directer' VINO
it is said. advanced much of the money WIN
which controlling shares of stock OF the FroNi-
dent were purchased. The conference began al .
o'clock and lasted until midnight but at that
hour the promised statement was not forthcoIllNs-
The Inter-southern group of fnanciers and in
surance men canvassed every phase of the Provi-
dents affairs and made up the slate for officers
and directors Their names will be MADE pupHc
to-day
The men from Louisville obviously pleased
last night the success of their plans, TO winch
there has been much opposition.
What will become Of the protests Of the
Provdent polfcyholders of several states, who or
ganized committees prevent the passing of the
society into the hands of the Kentucky interests,
is somewhat of a problem The greatest opposi-
ton came from Commissioner e z. Rittenhouse.
of the Colorado Insurance Department. and the
policyholders' committee formed Denver. There
is another committee in New York.
S. Herbert Wolfe an actuary who IS chairman
of the New York committee ard representing the
Colorado committee said to a correspondent of
The Tribune Lake Placid n. Y, last night that
he would bring the affairs of the Provfdent to the
attention of the insurance commissioners at their
convention in Detroit the part this month.
He said that Superintendent Kelsey in har
mony with the poiicyhoders movement.
1T is my intention said Mr.. Wolfe. ITO bring
informally to the attention Of the insurance COM
missioners their convention in Detroit on Au-
gust q. the true status of affairs in connection with
this society and I have doubt that they will
take such steps in their opinion necessary
to protect the policyhoIders
To-day 1 am in receipt of telegram from
Thomas B. Love. Insurance Commissioner of
Texas. asking me to represent him Insurance
Commissioner in protecting the interests of Texas
policyholders. My office. at No 1G5 Broadway is
in receipt of great number of inquiries offers
OF cooperation. Since the Armstrong investiga-
ton nothing has been so indicative of the evil ef
feet Of permitting speculative interests to be in
charge Of life insufence company this Wood
rufThonla Coyle Inter Southern manipulation of
the interests of the thirty-hve thousand policy
holders.
You may say that Mr.. Kelsey Is in harmony
with the polcyholders' movement He has as
sured me that reinsurance deal will be approved
by him unless he is satisfied that the parties are
not only acting in good faith, but also 1nan-
cially responsible"
The plan it Is said. is to reinsure the Prov4-
dent risks in the Inter-Southern or merge the two
companies. At present the Louisville concern ha
an application before Superintendent Kelsey for
permission to do business in New York State
which has been refused The Insurance Depart-
ment barred the Provident in January from writing
any new business. If the examination of its af-
fairs now under way reveals satisfactory
condition than existed at that time Superintendent
Kelsey may give permission to resume the writ
ing of risks. Also if the present condition of the
Inter Southern warrants it. tfr. Kelsey may admit
that company to New York State It is likely
however. in the of the PrOvdent that the
new management will first have to furnish enough
money to replenish the reserve.
A we'll informed as to the affairs of the
Provtdent said yesterday that he believed there
was little hope for the policyhOlders to set aside
the deal just made. if that is their intention He
said that they probably would content themselves
with obtaining a representation Of two or three
members the board of directors in accordance
with the suggestion of Commissioner Rittenhouse
The poicyholders would then place their interests
in the hands of the directors and the Insurance
Superintendent
The 1.o49 shares of Provident stock the sale Of
which changes the society's ownership have been
held by several banks as collateral for loans sd-
vanced to E r. Thomas and o. F. Thomas. who
formerly controlled the company They have been
held in escrow by the Fourth National Bank. The
price paid by the Louisville people is said TO be as
share. Whether this has been paid IN cash or
securities or partly in each. was not made public.