The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1877-05-22

sons Hate ana Fear.
STATE OF OHIO, INsURA NOE DEPARTMENT, |
OFFICE OF SUPERINTENDENT,
COLUMBUS, May l8 1877.
Il. Simpson. Esq, Cincinnati, Ohio;
My DEAR SIK--On my return to Columbus
find the following "open letter" addressed to
me by yourself;
"oPKN LITTER
.To the Insurance Commissioner OF the State
OF Ohioi
"DEAB SIR--By reason OF the failure Of the
Security, Continental. st. Louis Mutual,
New Jersey Mutual and American Popular
LILO Insurance Companies within the
past year, the people Of Ohio have lost
largo sums OF money and public confidence
has been very much shaken in Lilo In
surancu Companies generally, as we'll as In
the value and eificioncy OF State supervision OF
the Affairs Of Insurance Companies. Wlthln
few days the announcement has been maze
through the daily papers that still another
Company, to wit: zinc Life Association of
America has been excluded from doing busi-
ness in this State by orders from your Depart
Inent; and, whereas, it appears that TINS last
numei Company wss professionally examined
since tho LIST day of January last by Augustus
r. Harvey, actuary, AMI that upon the ccrtln-
cate OF examination and Recommendation OF
SAID actuary the said Company was admitted
IL
is also known that there are other Life Insur
ance Companies now doing business in the
State that were examined and admitted under
examinations anu certificates furnished bY the
same ACtuary,
''Now, therefore, in consideration Of the iactS
above stated and of the great Importance TO the
people of the State, that they have full and cor
rect knowledge touching the condition or every
Company doing business within Its border5, IL
is duo to the people OF the state and in justice
to your Department that every Company mere
| tofOre examined by the said Harvey and
passed upon his certificate OF examination De
at once re-examincd by an honest and compe-
tent expert in such matters to the END that All
doubts may speedily be removed and public
| confidence again restored In existing Com.
panes, as VOL as in the efficiency and value OF
| oar State Department whose especial work 1t is
| tu nuperVse such Companies.
'Vcry respectfully, r. SIMPSON
| That the people have lost large sums Of
money by reason Of the failures named Is un-
IdOublcdly true. That their confidence is shaken
! in Life Insurance Companies generally Is also
true.
Indeed, sir, it is difficult to perceive how it
could be otherwise, when the people are al
most daily informed through the public press
and Insurance periodicals that the managers
and agents OF Iife Insurance Companies spend
| more of their valuable time in dcfaming and
| slandcrlng each other than In attending to
their legitimate business. Now, let mo see
why the people should lose condolences IN the
| value of State supervision.
| All the Companies named In your letter were
admitted to 40 business in Ohio long prior tC
the establishment OF the Insurance Department
Of this State. They were admitted by terms
imposed by the law making power and by tht
Auditor OF State.
When tho Insurance Department was estab
llshed, my predecessor, MIR. Church, found al
these defunct Companies with drm foGtholt
in Ohio, with their agents peranoulatiDt
almost every county, impotunng the people
for business. The records OF the office show
also, that the st. Louis Mutual, during TIL,
year 1873, was merged into the ST. Louis Life
and that Company, under Its new name an'
management. was, IN 1874, readmtted 10 III
business IN ONO BY my predecessor In once
| Hon w. II. Church. man who was ''sRille'
in insurance." and that 1t continued to do busl
ness IN the year 1915.
In 1876, the first year OF my admin istratinn
license to this Company tSt. Louis llfe) wa
not renewed. nor has IL nad permission 10 dt
business in Ohio since that time.
| The unSonnd condition OF Tho other Compa
nies, named in your letter, was discovered, Il
| each case, by the superintendent OF InSuranc
| OF the states in W htCh they are respectively 10
! Gated, ana one of them was examined and ex
posed by Lhe New York Department. partly d
| my suggestion and request.
Now. why should the people lose con1denc
in State sllpeTvisonp Is 1t because State siI
| peryislon frequently, by rigid examination
exposes tho vIlainy Of the business Of whic
, You are prominent and well PAID representa-
. tive? or is it because state supervision occa
sionally finds and reports financial stabillt
J and economical management IN rival inst
tuition which you hale and fearp
| Now. rs to the Life Association Of st. Lou
s and Mir. Harvey, permit me to say, sir, thf
Mr. Harvey ana nGt; 'y reqHGso' f m 'mnuat ar
AS Colonel Ewing has already informed yol
no blanks were furnished that Company b
this Department in December last, and at I
= rime until after requested by the Fresiden
l Lot inform
d MIR. Harvey, as early us January last, warnt
t me lin response to an inquiry that he though
the Life Association OF America was great
q impaired. could not comply WIN tne ONO II
= DUTY NOT TO PERMIT 1T to do further busine
IS in Ohio without thorough examination
e Having been informed that IL was the inte
10 tion of the Massachusetts and Illinois Depar
=, mepts to examine that ompany, awaited Il
!, | result, which was promptly furnished me
Hon, w. 5. Helfe, Superintendent OF lnsu
III | ance of the State OF Missouri. That examin
g ton was made by the following named ge
Martin J. Hubble, Deputy superintendent
a Missouri .
I'd Aug F. Harvey, Aotuary and Special #
II aminer for Missouri
"a Garrct s. Won wagner, Spetlal Examil
IN 5. Ii. Rhodes, Insurance Commissioners
u | Massachusetts.
al Samuel Ii. Row, Insurance Commissioner
AZ Michigan.
# Emerson W. Poet. Special Examiner
- Pennsylvania.
- Robert M. Woods, Special Examiner for
- linos. . ,>
Ell ments lust named Col. Kellogg, OF lllnt
Mr. Holmes, Of Pennsylvania, and
Hedges also assisted Their report
be found in the ST. Louis Republican OF Al
sd The examination was made imme
atcly prior to that time, but no part OF 1t Jar
Is ary or February. And now, in order to 1
i'll pose OF Mr.. Harvey, let me say that all
work he has ever done for the Ohio Depa
nd mept was done in assisting Colonel Will
Ewing, Deputy Superintendent Of Ohio, in
. examination OF the Union Central, of Cine
he natl, never requested him to do anyth
ay else: and when he was through with that
OBJ charged him, because l had nothing else
him to do.
In the examination Of the "UDion Cent?
by Colonel Ewing and Mir. Harvey have
fnllest confidence, and shall order no rc-eX,
Co. inaton Of that Company, unless upon reli'
W. information furnished me OF change OF c
dltion occurring since the recent examinat
lis am confirmed in this opinion by recent
cis,ons of The Court of this state and Of my
nersonal knowledge OF the Company's aff
an In fact, every position assumed by THIS Dep
menC toward that Company has been sustal