New-York tribune., 1909-01-27
DELAY In WALLIS CASE
SEARCH OF THE RECORDS.
albany Hears What Documents II
Be Sent to Senate Will Shoe.

rBy Telegraph to The TribuneJ
Albany, Jan. H-UntiI the records Of the State
, Insurance Department bearing whatever com
plants charges may have been filed against the
Home Life Insurance Company or Frederick A.
Wallis called for by the Grady resolution, have
been sent to the Senate. nothing will be done tow
ard confirming the Governors nominee for Superin-
tendent of Insurance The Senate Insurance Com
mittee held meeting to-day but Senator Grettan.
chairman. said that a resolution was passed calling
for special session when the documents were re-
ceved.
Acting Superintendent Appleton was going through
the files OF the Insurance Department to-day. The
nature Of the work is such that it is unlikely that
he complete it before the latter part of the
week. Meanwhile he will say nothing about the
results of 1t. E1-Superintendent Kelsey during
whose term OF Office the charges are alleged to have
been made. said that in view OF his recent trouble
with Governor Hughes he did not think It would
be proper for him to take any part in this contro-
versy. he declined to say anything about the
Wallis matter. All the legislative world never
theless, seems to have learned just about what
the documents which will be presented to the Sen
ate will show.
In relation to the rebate premiums referred to
in the Grady resolution. 1t is said such charges
made against Mr.. Wallis by insurance
agent, but that when the attention of the depart
ment was called to the charges MI Wallis wrote to
Superintendent Kelsey that 1t of black
mail. Mr.. Kelsey then, learning that the case had
been carried into the courts. decided to wait for
court decision. That Is the last tnaL was nearu
Of the by the department.
1t was also alleged that Mr. Wallis violated the
insurance laws by issuing misleading circulars.
The Insurance Department communicated with the
HONS Life Insurance Company about this matter
and received the reply from George z. Ide, presi-
dent. that Mr. Wallis had issued the circulars
without his knowledge. Mr.. Ide inclosed a copy of
a letter he said he had written Mr.. Wallis rep
rinanding him for issuing the circulars and or
derng them called in.
Still another item in the gossip concerns records
In the department said to show correspondence in
reference to the request the Home Life to allow
Mr.. Wallis, then head OF the New York Office. to
contract for business in New England. Superin-
tendent Kelsey decided that this would be against
the law. and in connection with this he
dered decision that agents getting a salary
head Of certain territory could not have that sal
ary increased under the form of adding to their
duties.
To get around this law It is charged that Mr..
Wallis Incorporated his New York Office and with
drawing from 1t officer then contracted for
all the New England business he wished to at the
time getting a money return from the New York
Office through the stock he held in the corporation
This is held TO be technical violation of law.
Governor Hughes declined to discuss the Wallis
affair in any way to-day. 1t is known he has taken
it under advisement in all its phases. Up TO date
the material brought out does not seem 10 con-
stitute any very strong against the Governors
choice ana II would be wholly unlike the Governor
to take any action without learning Mr.. Walliss
side OF the case. Those who know the Governor
feel sure though. that Mr. Wallis will have to have
an absolute and complete defence unluestionaole
and unassaable from any point, to satisfy the Ex-
ecutive. That failing, some here would not be sur
prised to see the Governor withdraw Mr.. WalLs's
nomination.
When the resolution of Senator Grady was called
10 Mr. walliss attention on his return from Ken
lucky yesterday. he said II know nothing about
the affair I do not know what they are driving
af