The Washington times., 1908-08-04
KELSEY WATCHING
PROYIDENT LIFE
Insurance Superintendent in
New York Looking Into
Proposed Sale.

NEW YORK, Aug. 4.-State Superin-
teEdent OF Insurance Otto Kelsey has ar
rived in the city to investigate the pro-
posed sale of the majority stock OF the
Provident Life Assurance Society to the
Inter-Southern Insurance Company of
Kentucky, which was recently barred
from doing business in this State. OBJ
je.tiCu to the transfer has been raised
by policy-holders here and in Colorado.
They claim that the Inter-Southern
Company. as revealed through a recent
investigation. is weak and in no shape
TO take over the Provident Life.
The contemplated sale was brought
to Mr.. Kelsey's attention by q. e.
Rittenhouse, insurance commissioner of
Colorado, who initiated the inyestiga-
ton last year which eliminated in an
order from Mr.. Kelsey's office forbid
ding the Provident to write any more
risks.
C0nfeTs With Attorney.
Mr. Kelsey conferred yesterday with
Royal Victor. an attorney who has
been conducting the negotiations for
ihe Sc le. Mr.. Victor inii him that The
Inter-Southern Company has been
greatly strengthened by the purchase
of d controlling interest by substantial
hnaneiers In Kentucky and adjacent
States
Among the things that Mr. Kelsey
will look into is the assertion BIZ Mr.
of money of the Provident Life policy
holders has been wasted since last De-
Cember, when action was taken by the
Insurance Department against the COM
pany. He wants to satisfy himself, be-
fore giving sanction 10 any sale, that
no jugglery win occur that will further
impair the interests of the policyholders.
Mr.. Kelsey said last night.
1T may be that ] will be unable 20
stop the sale, but II a transfer is made
to a company that is manifestly unsOund
I shall certainly take measures 10 have
10 set aside. This might require action
in court"
To Sell Thomas Stock.
The stock which It is proposed selling
is that which Z. r. Thomas and Or
lan,:o Thomas put up as security for
loans with the Consolidated National
and the Mechanics and Traders Banks
and the Metropolitan trust Company.
The Thomases bought the stock, which
carried with Il the control Of the com
pany. from Timothy l.. Woodruff. Ia
his letter TO superintendent Kelsey urg-
ing action against the transfer Of this
stock 10 the Kentucky company Mr.
Rittenhouse said
While in the East I brought the mat
ter to the attention of Mr. Woodruff. ]
believe that the disclosure made in the
recent legal proceeding, wherein the
Philadelphia syndicate promised TO de-
post in certain banks $4,000 of the
Provident policyholders' money TO keep
il there under certain conditions. 10 pro-
teCt their personal notes given 20 the
Thomas people. places an additional and
very grave responsibility upon Mr..
Woodruff IL the sale of this company
to those irresponsible and wholly unfit
people was approved by Mr.. Woodruff.
who, in the minds Of the agents. and
the public. stood sponsor for their in
terests" Mr.. Woodruff Is in the Adrion-
daclIs and has taken no active part I'm
the proposed sale. There was a hur-
ried conference Of several OF the Provi-
dent directors yesterday. and IL was
limited that they would go ahead with
the program regardless OF Mr.. Kelsey s
investigation.