The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1850-01-07

deemed IL his duty TO increase the salary OF that ocer
TO 81 SEQ per annuu IL Is believed, that of the
banks by which the expenses Of the department
paid will object to this increase Of compensation
when they consider the responsibility of the ofice
its incesssnt lsbors and the high qualifications
required TOR the correct and satisfactory dis
charge of its duties. To the chief register 10 con-
ded the custody Of nearly twelve millions of produce
tive securtes the receipt aud transmission OF money
to an enormous amount aad daily Transactions OF tue
utmost Importance to the banks and the public. The
comptroller would deem 1t uawsrrantabls 60 commit
the affairs Of the department to agent whose time Is
Of less value than the compt paid to the present
capable incumbent
The statement an nexed marked N, shows the amount
Of moneys remaining in the hands Of the comptroller
for the redemption Of the circulating notes Of the To-
solvent banks.
INSURANCE COMPANIES.
By the act passed April 10, lsi9 "to provide for
the incorporation Of Insurance companies an i'm
portant and difficult duty was imposed upon this
office. The comptroller regrets the atniuistra-
ton Of the law had not been committed to some
Of the other state departments as the duties
Of thi. ofce already sufficiently mutifarious aud
arduou' The phIsseology Of The act Is in some re-
spects obscure and indeipite and considerable euoar
rassment has been experienced in carrying 1T proyi
siops into effect After prescribing the am unt OF
capital TO be possessed by companies formed in this
State, and various requirements TO the Of
its Investment the law provides that 1t shall not be
lawful for any agent agents of insurance
Of Insurance in this State without first proc ring from
the Comptroller certificate Of authority. This
thcate to be granted only on satisfactory proof that
tUch company possessed Of the actual amoust Of
al required Of companies organized under the Ia US
VI thie StnNe IIt Compauy AppiylDB cSttiuchtc
Is required to furnish statement verified by the oath
OF it's president or secretary shosipg the AMOUNT Of
Its capital; whether the Is and II to
what extent TO determine what constitutes satisfac
factory proof on this point Is attended will much
plexty The real amount and solidity Of ths capital
possessed by remote companies, is not, in all cases
problem Of easy solution The question must be de-
oided upon the information furnished by the oompa
MES themselves Their statements never fail to ex-
hbit the nominal amount required by the law bu. it
must be obvious that In the absence OF any power to
test the accuracy Of these reports By an actual exaui
nGti and adj nf fha vafn of he
AMI erroneous conclusions are sometimes
unavoidable.
Most of the statements heretofore presented are
confined to an exhibit Of the amount Of capital, and
the nature of the securities with affidavit of the
1t has been assumed that the ceracate Of authority
is to be Issued upon mere showing of the assets with
out any disclosure Of losses or liabilities IL must be
admitted that the language Of the law leaves some
room for doubt TO the extent Of the information to
be furnished to the comptroller, as basis for his
tcate Of authority and this doubt should be removed
BY further legislation
brief experience has shown. that IL nothing 1,
quired but report Of the capital Of company, with
out position OF it's liabilities aud affairs tbs Law
must fail TO afford any adequate protection TO the
public and the Intention Of the Legislature will be
frustrated The correctness OF this opinion will be
thown by referring to recent instance Of successful
fraud. On the fourth day of June last, statement
presented by the Protection Insurance Company of
New jersey, sbewng capital Of s1S74u So invested
In stocks and other securities to possess
ample intrinsic value
tary and the certificate Of the county judge Relying
upon the evidence thus produced and believing the
company to be in q sound aud fourshing condition,
the comptroller issued certificate of authority under
which, he regrets to add i'm positions subse
Guentls not only in our ON munity but
in other States. In October the company failed aud
it appears from that possessed ores
capital Its exhibit of securities false aud decsp
tive pfetenting stocks which fictitious, aud u
vestnents which cannot be found The parties to this
fraud ought ana is hoped they may Do SUBJ ecet to
condign punishment. But, as the perjury
nittsd in another State where laws inopsrs-
tive Is not perceived how this offence to be visited
with the penalty 1t deserves.
Many, and Ii is believed most, OF the companies Of
other states, doing business here by their ageat
controlled by of high character and responsibility,
vhote statements Of their condition titled to full
confidence But the law had its origin, and must fad
its Qualification, In the fact that of these
panies are Of different character. Some instances
have to the knowledge Of the comptroller where
such com psnies have been formed, with little
real capital and with no view to the transaction Of
legitimate business at home, but for the speculative
not to say sudulent purpose ofsatherng harvest of
premiums in other States.
hibt Of the assets, liabilities and Affairs OF the CON-
panies creating agencies here under the Law, before
deciding upon the sufhcency of their capital. the
eonptroltr has issued circular Of which copy is
It Is dircolt to perceive how sstisfac.ory deci-
yany Is impaired to what extent without the Ia
formation thus called for Unless the opinions Of the
officers Of the company are to be adopted without fur
to the formation of n correct opinion Some Of the
companies to be Affected by the proposed regulations
amount o their proats losses dividends aud oustand
ing policies But whilst similar returns are required
yearly from our pauies with more miaute de-
tails 1t Is not perceived that any good exists
why ompsnies in other States, seeking to Increase
their PROFITS by extending their business through
acting under the protection OF our laws should not fur
Iith clear and iuteligibe sccount Of their condition.
The manifest design Of the Legislature was to place
foreign companies on a footing Of equality With our
More Than this cannot be claimed on PRINCIPLES
81 justice or comfy The publication Of the state
ments on which the certificate OF authority grated
In all h. fiasu Fahlt
objected to by several companies unnecessary and
expensive It's believed that OF the details fur
nished TO this oce, might be omitted with propsty,
In the published reports careful revision Of
In this particular to define the extent OF the in
iotmstion 70 be published Is respectfully suggested
prestn law might be avoided IL power were conferred
to cake full Investigation of the affairs Of the
psnies by special agent or commissioner to be APP
pointed fer that purpose with the consent OF the
psny Interested.
Since the Law went iuto effect IA May last four hun.
dred and forty I've certncstes Of authority have boon
isued from this Office TO agents representing thirty.
three companies located In the States Of Maine Masa-
chusets Connecticut Rhode Island New Jersey, Penn
sylvanis. Ohio Isentueky, Tennessee and Georgia.
The ooirsspord sbee, entries aud other laoOrs incl
most q the tine Of sddtisssl clerk and 1t is
rectfully recon mepdsd that this extra expense bs
provided fnr by requiring reasonable ties for
nheS's ISSUED 10 Be raia Into the treasury
AUCTION purns.
IL viii be observed the from this source
duti,s, during the lsst fiscal year, S9302j 45,
th0siDg eimnuticn Of slO.S70 % az comPacsi WITH
the previous year. Several caues been assigned
I'm expansion Of the gradual decrvsss o. duties for
stme years past The revenue seriously Impaired
by the act Of ls4i aud the other previous acts red
cling the rate Of duty Articles o. American na1ufac.
ture exempt from the pay nent q daty, and t Is
rspresencd that Increased proportion q this goods
cold AZ auction Of TITS description sder the pre-
cent Law every citizen l. az liberty 60 toe pr
vilego q selling 81 auction approved bud
for the payment "a the duties la ascertsining the
\ MOI 81 al he Of Inf natI
the only evidence Tee urc4 IL to return the
aretionser; aud thus the Law relies, in eeo On the
honor and Int, gritty q the party b. whom the pay eut
Is 20 be made Ia great majority OF this l.
safe reliance The auctioussrs, class enjoy ald
deserve high reputation for nbty aud o5servsnce
ct the code q Commercial morality whiah gorsFas the
transactions OF boGorabe merchants u Il to b. cup.
posed however that this class more than other trades
aud pursuits which open 20 al protect itsslf
from cccssiona intfUdeTs, who are unvorthy Of pub
lie private confidence II IL no disp,rssement Of tas
auctioreerr, ns body, 20 consluie that some Of
doubtful integrity mar choose 20 engage In ptoh-
able calling aud IL u due TO the honorable merchant
that he ,hcud b. protected in hs business aud