Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-02-08

Remarks OF Mr.. Shepherd, of Camden,


tile Affairs and InsuI ance, reporting legislation
fneXpedient on order for further legislation in
regard to the oftce of Insurance Commissioner,
the report OF minority, reporting bill TO re-
duce the salary Of the Insurance Commissioner
tOfl,200.
Mr. SHEPHERD Of Camden, said: I wish to
say in reply to the gentleman from Augusta,
(Haynes) and to members, that this matter has
been before the two preceding legislatures and
after investigation, legislation inexpedent was
reported. II has been thoroughly discussed be-
fore committee of this legislature, on which oc-
casion the gentleman from Augusta had ample
opportunity to ask of the insurance commissioner
who was before the committee, any proper ques-
tons lie might choose. But the gentleman did
not see mt to take course that would enable him
TO arrive at Just conclusions, preferring to stand
up in his place in the House and hurl charges at
gentleman not in position to reply.
desire to correct some of the errors into which
the gentleman (Haynes) has fallen. He says that
formerly all fees and taxes upon insurance COM
panies were paid into the treasury of State. 1t
seems to me he could not have taken much trouble
TO ascertain the precise fact. If he had, he would
have found that previous to the establishment of
the office of insurance commissioner, insurance
companies could come into this State and trans
act business at pleasure, subject to no taxation
whatever. In regard to the domestic mutual
companies doing business in this State, if the gen.
tleman will examine the law, he will find nothing
IN 1t that requires the insurance commissioner to
examine into their standing. Into the affairs of
all the domestic stock companies, however,
ne examines, and examines in person, and in the
single case of the Union Mutual Life Insurance
Co., of this State, it takes at least one months
time to examine the records and make up the
returns in order to make this statement which we
find in the commissioners report.
The gentleman states that the insurance year
commences on the first day of July, and that the
licenses are granted to companies agents and
brokers in the State at that time. Many members
here may have got the idea from that remark that
these licenses are all made out and the money
paid in at that time. If so, it i. erroneous un-
derstanding of the matter. To be sure, the year
commences then; but these licenses are made out
from time to time and at all times during the year,
as the commissioner is called upon to issue them.
And so of the money collected. 1t is paid in to
him at all times. 1t would be impossible for him
with his present help to accomplish all this work
on or near the lst day of July. And this reminds
me of the assertion of the gentleman (IIsynes)
that the commissioner has nothing to do, substan-
TALLY Let us sec. Any foreign company desir-
ing to come into this State makes application to
the insurance commissioner. Upon such appca-
ton 1t is the duty of the commissioner to examine
into the financial affairs of the company applying,
and ascertain whether its admission TO the State
would be proper. This examination involves
much labor, and it cannot be accomplished in one
or two days. 1t is quite task to look over the
affairs OF company and often requires many days.
Following the examination comes the forming of
his opInion as to the propriety OF admitting the
company, and that decision OF course is based on
the examination.
The standing of all the companies doing busi-
ness in the State is shown in his report, which, by
the way, is not, as intimated copied from the re-
port OF Massachusetts, from the fact that our re-
port is issued some three months the earliest. |
have the assurance of gentlemen that understand
the making up OF this report that it is the labor of
two months, and sone have set it as high as three
months. am informed that when Mr.. Paine of
bangor was commissioner, he had the services of
his two daughters the most of their time in max
ing up his report, in addition to the labor which
he gave 1t himself. Sending out of blanks for re-
turns is small part of the business of the office.
Ills correspondence with companies and their
agents who write for information in connection
with his office, requires large part of his atten-
ton, and is an important item of labor TO be taken
into consideration. In regard TO the assertion
that the report of this year is almost identical with
the reports of previous years have to say that if
gentlemen should examine the matter they would
find that the reports from year to year are entirely
different
Then the question of rent has been mentioned
and 1t has been asserted that an office as good
can be procured in this city be rented for 800
a year. and that Mr. Nye had two offices at the
time he was appointed insurance commissioner.
This is the fact At the time of his appointment
he and his were occupying one office, in
which they transacted then business, and he found
1t necessary for him to have more room and TO
have place independent from that of his sons.
lie transferred to his son his business with the
various insurance companies and went into
entirely new office. He has two offices now one
for his records and another for the transaction of
business, at an expense of $500 a year which is
as low as q suitable office can be obtained in this
city, as ! am informed Passing along come to
the intimation from the gentleman (liaynes)
that Mr.. Nye does not hire a clerk to do this
work, based upon meie presumption that per-
haps he exchanges work with his son, and that
the clerk hire is paid for in that way. Now
have it directly from Mr.. Nye that he has never
transacted particle Of business for his son. except
to write letter in answer to inquiries, if his son
was away, stating that his son would return at a
certain time.
In regard to the salary of the Insurance Com
missioner, it is $1,000 year, the smallest salary
of any Insurance Commissioner in the United
States. The Massachusetts Commissioner has
SoOOO Tor conducting the business of his office in
that State. The fact that the Secretary of State
has only $500 year, is not argument show.
ing that the Insurance Commiss ioner is paid too
much. One would suppose from the statement
made, that $500 year is all that it costs to
~ on the office of Secretary of State Figure up
the salaries of the officials in that office and you
will find that they amount to So, 100. But the in
surance commissioner does not realize $500
year from his office. He has stated to me, and
have no reason to doubt his assertion, that the
most he bad ever realized out of the office in any
single year, was Sl563. Bearing in mind this fact
it seems to me impracticabe to reduce the salary.
Mr.. Speaker, it has not been my purpose to
make a speech, but simply to give statement
of the facts as | understand them This matter
has been before the legislature for two years and
| our committee, after two hearings upon the sub
ject, were unanimous with the solitary exception
of the gentleman from Augusta, in the
opinion that there should be no further legisat on
at present. 1t has been intimated, and ith some
degree of truth, it seems to me, if some other
man was Insurance Commissioner at this time,
| this matter would not have come before this leg
islsture. For myself. if had personal matter
| against an individual, | hope | should have
| manlness enough to meet him in some other way
than by asking the legislature of the State to aid
me in obtaining revenge.
The House refused to substitute the minority
report for the majority by yea and nay vote Of
ii to 10. The Majority report then accepted.