New-York tribune., 1908-02-03

stock transfer stamps amounting to large sum
al in 'na a to 8e Ss derk alone had
access. although they were practically as good
burned by this clerk With no proper precautions
to he M %t he5 1oN 1 os % M
this procedure was careless. he would still trust
issues his certificates extending the time In which
insurance companies must dispose Of their real
effect that they satisfied that the interests Of
sale ' Of the property at this time saying that he
has mo reason to doubt the good faith in which
elections the explanations OF the companies IN
reply to the and pro Protests OF 5ns policy
At the beginning of his testimony Mr. kelseys
partment drawn and checks to his order are
deposited Ute was vasge his FIRST mp Pe1ng
urer as they come in He was uncertSi, as 70
or coupon. although in March he stated at page
As of the proceedings before the Senate Judiciary
resentatves of the companies come up to take
ON ohe 0cre6e % hfer nqu he tested later that
they were all registered and assigned to him as
that Mr. mp Paterson is investigating the method en-
pIoved H bv Insurance Companies in calculating
idends and that this has been considered part
states that he has had occasion to look into
this question. the departments position being that
At page i3 OF proceedings before the Judiciary
ing the annual reports of insurance companies.
verifes the market values OF the seGuries thsg S
has been instructed to do so IL 1ufther APP
pears that on July ysige - @ fS the pDces of the
Bankers Life Insurance Company as OF DeceIn-
cordance with section ST of the insurance. law.
and not mentioning t FeGt9n r nremnms % we're there
by valued as one year terms WIN WIN sfifnd II
at all by section & 25 re ft HAT his attention had
tn be ne sd1isabiiity Of stating in
certificate that the valuation was as4 3il IN tbe r
anired reserves on these policies were largely re-
duced one pocy FOR FOR ms hs'dnTe daGertnents sctI
aries and the actuary of The COMPANY ra tnas nn
this valuation may ne tusted aier Gy Of insurance
experience it is Inadequate Il,
FauIRE. TO ISSUE DEFINITE INSTRUCTIONS /
To q large extent the failure IF his suoordnates
To Ike proper action in various nlittes s,iorC -
the fact that he has issued no definite S
with regard to these matters He seems 20 @ nav
contented himself as in the case OF n + verifV
give Specific directions TO his examines ne 20 sI
the policy registers and sheets kept IN the Gepae
os r. the effect that there be the strictest
compliance with the provisions OF law. ne eH
and to report anything Importance or out OF the
way of which he hears but mas heer iiise' "a
vic late the provisions of the law. As
consequence several of these which their face
in Mr. Kelsey's opinion Illegal remained am, t.n
aries nave been instructed 10 keep their eyes
open" but not told to look out for suspicious E
lapses and restorations such as occurred IN the
Washington Life. although IT Is admitted that IL IS
GENUINE Mr. Kelsey has not formulated any rules
for his examiners, but Nh Hadley has simply been
should be taken care OF And. although he thinks
that the examiners. under the amended insurance
trust companies in which the funds of the Provi-
dent Savings Life Assurance Society were deposit
ed, to discover for what purpose these de-
posits were made he had not up TO October % sug-
gested that such information be obtained.
Attention has already been called TO the fact that
up to about November ], lSJ7, the department
ignorant of the fact that the Providen Savings
had sold many OF its securities in January and
February Of that year ard had deposited the pro-
ceeds OF these sales in financial institutions con
troled by its officers. This Ignorance was due to
the fact that no effort was made by the department.
tions Of insurance companies. Mr.. Kelsey says
that there matters in the Provident Savings
that needed attention" but then thought that this
persons who had purchased control OF that
pany from on Mr. Woodruff 10 70 Tepudiats that pur-
Albany said that there moth
IN wnre end nn a Nh ms kesex States tba
he then told Mr. Woodruff that he had been
and that Mr., woodruff told him to go
ahead.
The matter seems to have rested until october
T. 1907 when Commissioner Rttenhouse of Colo
RADIO wrote 10 Mr.; Kelsey that he had learned of
IF this company. and had employed 5. II. Wolfe
sey wrote that he had for some time been eonsid-
ering the advsablity OF examining the company.
and various other matters had been occupying the
time Of the department. On October I6 Mr.. Ritten-
a blished the necessity for a full examination and
n answer to which letter Mr. Kelsey wrote on the
18th that there objection his part to
Mr. Rittenhouse's examination. and that the New
York department might assist Mr.. Wolfe in certain
lines after he had begun As result Of this
partrnAnt began their work on October q
Mr.. wolfe's report of this examination. dated De-
of re chief examiner OF the New York department.
verified January is, 1905 has been served upon the
company, which ha. asked for tho hearing to which