The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-10-31

up, or has gone round the corner. No body
can tell whether his gestures mean come
on or "hold back" Some one in the Com
mon Council proposed, in vain, to make
flagman walk before each street-car during
its transit across the steam-car tracks. Our
tunnel, reeking thought it be- is inval liable
We need at least one viaduct over the Union
tracks. There are ways known to tinanclers
of building one, and we have capital to build
it with. Many towns much smaller than
our 100, 600 city have viaducts. Kankakee.
with only 5000 souls has stone viaduct
over it railways. MARY DEAN,
The Graveyard Insurance Law
To the Editor OF the Indianapolis Journal
l noticed in to-days Journal, in what pur-
ported to be an interview with the Hon.
James H. Rice Auditor of State, concerning
mutual assessment life insurance companies,
that in response to an interrogatory OF the
reporter as to whether the insurance law,
passed last winter by the Legislature, would
have the effect to suppress fraudulent COM
panies," MIR. Rice is made to say by the re-
port, "None whatever The mutual assess
ment insurance companies themselves Sc
cured the passage of that law"
AS to the first proposition, desire to ask
why assessment insurance companies, doing
a fraudulent business cannot be suppressed
under the provisions of the act OF the Legis-
lature passed last winter? The Auditor OF
State could not have examined the provis-
ions of the nsuran ce law, now in force in
the State, at the time of his purported inter
view, or he surely would not have made the
statement he did
Does not section 10 of said act expressly
provide that whenever. in the opinion of the
Auditor of State any such company "is con-
Quoting its business fraudulently, or not in
compliance with this act, or is not
carrying out its contract with the
members in good faith, then it shall be the
duty of the Auditor of State to commune
cate the fact to the Attorney-general, who
may thereupon commence proceedings by
writ OF quo warranto against such corpora
ton. association or society, requiring 1t to
show cause why its officers should not be re-
moved, or its business closed, and the court
or judges, as the case may be, shall thereupon
hear the allegations and proofs OF the re-
spective parties and if it shall appear to the
satisfaction OF such judge or court that the
officers of such corporation, association or
society, or any one or more OF them,
have been guilty of any material
irregularity or violation of law, to the in
Jury OF such corporation, association or So
ciety, the said court or judge shall decree
removal from office of the guilty party or par
ties, and substitute suitable persons to serve
until the next regular annual election, or UNI
til his successor is regularly chosen or, If it
shall appear to the said Judge or court that
the interest of the public so requires, the
said judge or court shall decree dissolution
of said corporation, association or society
and a distribution of its effects
And again, in section 16 of the
act, il expressly provides: When, in
the Auditors opinion. such corporation
or association is in this State conducting
its business fraudulently, or is not carrying
out its contracts with members residing in
this State in good faith he shall report the
same to the Attornev-general, who shall
thereupon commence proceedings by writ of
quo warranto against such corporation or
association, requiring IL to show cause why
its license to do business in this State should
not be revoked"
This law like all other laws, cannot en-
force itself, but it confers ample power upon
the Auditor of State and the Attorney general
to enforce its provisions whenever there is an
infraction of them. Its provisions not only
direct but make it the imperative duty OF
these two officers to put the law in operation
whenever any company doing business on
the assessment plan is conducting its bust
ness or is suspected of conducting its bust
ness fraudulently. This law may not be
perfect in all its Details and l do not know
that perfection has ever been claimed for it;
but it was thought and believed, at the time
of its enactment, to be step in the right
direction, and if detective which perhaps it
is in some of the minor details, they can and
will be readily corrected at some subsequent
session of the Legislature. But |
do think this act, before it is
condemned, should be fairly tested. The law
was not meant to be prohibitory. Its pur-
pose was not to exclude that class of insu--
opoa comDan MOS doinu business on tho asSaSS-
ment plan from carrying on their business
in this State, but the object was to place this
class of insurance under some responsible
supervision and to prevent, so far as possible,
those fraudulent practices which had dis
graced the name of this character of insur-
ance
In regard to the second proposition, that
the passage of this law was secured by the
assessment companies themselves, l have
only this to say: that our genial
Auditor of State has gain shot
wide of the mark There were present and
around the Legislature last winter the gem
eral managers of two assessment insurance
companies of New York 1.-THE names of which
1 do not now recal), but they were under
stood to be reputable and responsible com
panes, who were exceedingly anxious that
the measure should become law, and their
friendship for the bill then pending was
based upon the fact that no responsible COM
pany could do business in this State so long
as those wildcat companies" were permit
ted to pursue their nefarious business I'M
checked by statutory supervision. L know
of no other assessment companies, either in
this State or out of it, save the two
above named, that were in favor of the pas
sage of the bill, but l do know that there
was organized by these fraudulent assess
ment companies a powerful lobby for the
purpose of securing its defeat, and their paid
agents and attorneys thronged the halls of
both houses and the corridors of the hotels,
soliciting and beseeching members to vote
against the passage OF the bill. 1t strikes me
that the Auditor could and would serve the
people of the State to a better purpose by an
earnest effort to enforce the pro @ions of
this statute against offending companies,
than to throw discredit on the law and on