Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1874-11-21
~, mud ...e,.. and thai there the duty Of the


it'll aud assets, and that there the duty Of the
commissioner ends, leaving the business with
those who want to insure their lives TO
decide what company they will insure IN, ano
10 what manner they will insure. Among the
forty companies that have failed, every con
ceivable manner Of doing business has been
adopted by some Of them except the manner
adopted BY this company, viz small fixed
sum for doing the business and payment OF
claims for death losses. None of those com
panies that ever heard of were refused Ii
cense in any State on account OF the manner
that they adopted for doing business; seven
teen of those companies were licensed IN our
State. If tie question whether company Is
likely to succeed in business has been con-
sidered and acted upon by tile commissioners
either in favor or against giving license, the
fact that forty companies have failed within
four years, shows that the judgment Of COM
missioners on that question is good for moth
ing, and think comes up without any force,
against a company that is four years old aud
doing more business the present year than any
company ever did in this country in its fourth
year of business transactions. You re II a
commissioner has a right to refuse license
for the renson given in this case, or for any
reason whatever he may please to give, IL
makes State supervision complete despotlsn
He may keep out of the State the best compa-
ny in the country. 1t is saying to people III
this case who wish to insure their lives by
paying only what is necessary for current ex-
penses of the year that they shall not nave
the opportunity of insuring in that way, but
if they insure at all they must pay each year
at least four times as much money as is need
ed to pay death losses and trust to the com
pany to manage it for the interest of the as
sured or spend it fer unnecessary expense.
The Chronicle of New York and some other
Insurance papers have come to the conclusion
that State supervision has proved to be DO
protection whatever against imposition upon
the public, by humbug companies that the
country would be better with it than with il as
people then would look out for themselves,
instead Of being imposed upon by license
which is used by companies as letter OF
credit, to introduce themselves into business
whether they are reliable or not.
shall want to show to tie Legislature how
much of the money that has been paid to some
of those companies that are called good COM
panies now doing business in our State, say
New York, Continental, Equitable and some
others, has been used for expenses, and what
proportion it 10 to money returned for death
losses, during the last ten years, as is repre-
sented by w. w. Byington's ten years chart,
the accuracy of which l never have heard
disputed. l think that exhibition will ex-
plain why those interested in other compan-
les are 50 decidedly opposed to the admission
of this company. ! have notice from two
10 our place that they shall oppose any atten-
ton of the law that will admit this COM
pany. There are however exceptions, two
General Agents have said, that they did not
see how Mr.. Nye could refuse license, if
the company has complied with law of the
II .ss G,a a!
A. to what intend to publish being per-
sonal, you see / must refer TO the Commits
sioner, and state what has occurred between
him. and me in making application for Ii.
cense. My complaint is, that Mr.. Nye has re-
fused to give license for reason that was
not contemplated by the Legislature as being
. reason for refusal, and therefore, if the Leg
islature think best to continue State Super
vision, want to have an amendment to the
act that will definitely prescribe the duties of
the Commissioner, and also granting an ap-
peal to one Of the Justices Of the Supreme
Court, In case company is dissatisfied with
the decision of the Commissioner and that
would relieve State Supervision from any
despotic character which it seems now to
have, if Mr.. Nye's view Of the Law is correct
Now / DO not wish to misrepresent Mr.
Nye in anything that has passed between US.
went to Augusta on purpose to get him to
state to me definitely the reason why he
would not give license, so as not to make a
mistake in what l intended to publish as to
his reason am willing to have you show this
letter to him anu inquire if what have stated
10 correct; if it is, of course he cannot object
to its publication.
If you decline to publish what want to
present to the Legislature, please inform me
so that can make arrangements in another
way. NATHANIEL FRENCH.
Lewiston, Nov. Is, 1874.