New-York tribune., 1909-01-03
nEFIES KELSEY ORDERS
U1SE!INGTON LIFE ASSETS
mn RE KEPT IN Pfy'TSBURG.
President BcId7cin Says Fight for
Securities -Nust BE Fought
IN COurts
ra. -cr r-a-r go The Trfharc1

q s-
,..~ f.r - 2-prcsideut William G. Bald
.ra Fft,saa9e Life and Trust Company
v v -.r.,s,a 10 return - New York securities
he9 ra purchased from the Washington
" --.r-.-..a company, ordered by Otto
. ..-...~:rten6eut of Insurance. The books
.,s zysrp removed from New York 10
e. e. - and the bonds and mortgages are
-, ,...-lrr- or the Fidelity Title and Trust
60 If th.s city. President Baldwin said:
- -, N1r- Kelsey over the long distance
- r~iar to your correspondent calling on
a.. arc ,ha best of friends. There IS no
III ,,s+ar,-ir-- SO far as Mr.. Kelsey and L
.-,,,.5 lie Is merely carrying out what
a. T., he his duty We have refused TO
-, the securities he demands
,- ~, 10 aIr Kelsey to place the mat
.,s Attorney General Of New York. and
! - viii he fought out in the courts II
'ie -.,as-;or for his department. TO settle at
i ,-.s5v have three times the amount of
III - ,,ace5 with Mr.. Kelsey than are
'.,-e undar the law. Under the New
80 -...a Law We have only To place S1coO0o
-, ~ securities with the Superintendent OF
Is,,rance Department We have S3ooNt
- os security. We have right TO the super
-, of tl,e remaining securities, and until the
-. orders otherwise We are going 10 mold
- -r.,s amount We have with the Superin-
- : Insurance is far greater than one Of
:, largest companies in the country
a. Baldwin dictated this statement;
--,.,,~,,,a Commissioner otto Kelsey gave
..a reg,,lar notice 10 the officers Of the WASH
-. 7;+a Insurance Company for the return
of hooks and assets The department. anu ''7
of7,e-s or the company understand. one with the
o,rsr that the matter must proceed accoTolhg
:, IL. regular legal requirements in such mat
ters IS this
..7-,e statements that have been made that
49,. .-,7r.7,z--e Of the company had no knowledge
f +5.e transfer of the books and assets OF the
man are not true as part Of the employees
~ -na washington Life Insurance Company as
st..,4 -, moving the same. and are now in the
,.,.,roz- Of the company in Pittsburg. Other
a777rlovez that could not he employed by the
r,f-tsI,,rg Lie and Trust Company were paid
ma rnonrF.s salary instead of being given the
,,eaaI thirty DAYS notice, which IS common
El!siness practice
The hooks and movable assets OF the COM
many were removed necessarily after business
hours and during the night, which is not unusual
with large corporations. As 70 the right Of the
two cornpanies TO carry out the transaction as
il las been, legal advice was taken from emf
nent lawyers Of New York and Pennsylvania.
and the transaction viii. of course be passed
upon by the proper officers Of both states,
THE capital ot the Washington Life lnsur-
snce Company was 100000; the capital Of the
Pttsburg Life and Trust Company was in
creased from S659000 TO sI000000 in order that
the poIicyholdeTs Of the Washington Life Insur-
ance Company might have larger amount Of
stockholders assets TO guarantee the carrying
q their policy contracts. The Pittsburg Life and
Trust Company has in addition TO S1000000 Of
capital, more than 100000 Of unassigned sur
plus. thus giving 10 its policyholders more than
sf.60o,000 a. security il excess Of all legal re-
Guirements.
The directors Of the Pittsburg Life and Trust
Company realize to the fullest extent the fldu-
ciarv nature Of life insurance assets, and in
ranging for this transaction made all provision
for the absolute security Of its pollcyholders
and also 70 give to Pittsburg life insurance
company that would compare favorably with
those f other cities"