The Portland daily press., 1883-11-23
The insurance Sensation.

As announced in anticipation, the notice of
the Insurance Commissioner of Massachu-
sets revoking the permission to the Union
Mutual Life Insurance Company of Maine to
do business in the former State was published
yesterday. 1t contains the explicit statement
shat "the company, by its officers, refused
to allow free access to its books or papers,
or to submit to such examination" as had
been demanded. The Commissioner gives
out all the correspondence in connection
with the matter, of which we publish else
where all that did not appear in our columns
yesterday. The matter is of great impor-
lance and interest not only to this company
and its friends and patrons, but also to
all who are engaged in the business of insur-
ance, and to the community at large, large
proportion of whom are directly interested
in the conduct of the insurance business.
How important this interest is appears from
the simple statement that the life companies
doing business in Maine had at the close of
the year 1882 almost 1900 million dollars of
insurance Of which over % million dollars
was upon the lives of citizens of this State
The first thing to be said in view of the
additional correspondence published, which
we may presume fairly sets forth the whole
case in its official aspects, is that nothing in
it contradicts the statement of the officers of
the company made last night, that they had
-nos refused 20 permit an examination TO be
made, and nothing in it substantiates Mr..
Tarbox's statement that the company by its
officers had done SO. This will be apparent to
anyone who carefully considers the whole
correspondence.
The company said that it was now in the
hands of the Maine Commissioner for an ex-
animation. 1t did not, SO far as appears,
make objection to cooperating examina-
ton by the authorities of the two States, but
unless they could work together 1t consid-
cred itself obliged to submit first to the ex-
animation of the Insurance Department of
the State by which it is chartered and in
which its principal Office is
This State has an authority and control
which no other has. The statutes impose
punishments on officers for hindering or OBJ
structing the Commissioner of the State. If
the two Departments were working together
on friendly terms there might be spirit of
accommodation which would prevent inter-
ference; but they had not agreed, and it
would in that case be easy for the Massa-
chusetts company when in possession of the
books to make it impossible to comply with
the demands of the Maine Commiss-
Toner. With Mr.. Tarbox's evident DISPOSE
ton to make trouble for the company he
would have found way under such circum-
stances.
He is driven to the explanation which he
makes in statement given to the public,
an explanation which exhibits the insinceri-
ty of his soft words to the Maine Insurance
Commissioner in his correspondence with
him. Thissexplanation is an imputation on
the official probity of the Insurance Com
missioner of Maine, by suggesting that he is
In collision with the officers of the company
to prevent any thorough and satisfactory
examination. he therefore chose to regard
the action of the companys officers when
they promised to submit to an examination
by him after the Maine Commissioner had
finished his work as part of a scheme to
avoid examination, and to treat it as refusal.
It will be thought that he was hard pushed
for pretext to do what he pretends to be-
lieye there is good cause in the company's
condition for doing.
The Maine directors of this company are
John E. Dewitt, its President, Bank Exam
liner Richards, Judge Bonney, Josiah II.
Drummond, Thomas A. Foster, Henry L.
Paine and Marquis F. King. Most of these
gentlemen are widely known in this State
and the public will be very slow to give
credit to any such imputation upon the mo-
tives of their condnct, as Commissioner Tar
box has given utterance to. For some rea-
son he appears to have determined to drive
the company out of Massachusetts.
Probably one pretext was as good as anoth-
er as an excuse for an action determined up
on. 1t is of course serious matter to the
company inasmuch as it is removed from
field of business where it was known and
successful, and it is still more serious mat
ter in consideration of the insurance bust
ness generally, business which feels any
breath of discredit as sensitively as the stock
market.