The Portland daily press., 1883-11-24
The Insurance scandal.


The manner in which the insurance commissioner
has acted in the case of the Union Mutual Life In
surance Company might almost confirm the impres-
sion which is abroad that he was determined upon
the exclusion Of the company from the State at the
outset. Mr. Tarbox has heretofore run bis depart
ment to the purposes of his excellency and 1t
is we'll known that the governor Is at least half
committed to the idea that the Union Mutual Com
pany ought to be driven from the Commonwealth.
The reasoning by which he arrived at that conclu-
sion is not particularly cogent It is this Mr..
Clarke gave the company a certificate OF character
consequently it is probably unsound. But whether
Mr. Tarbox had predetermined his course or not
one thing is certain: If his real purpose was to
make a careful and impartial examination, he could
not have acted with less act or with more absurd
ly unnecessary assumption Of dignity and authority
than he did. The solvency of the company, or its
ability to satisfy the Massachusetts, law Is not now
the question. The whole matter lies in a single
brief sentence. Mr.. Tarbox ordered the company to
turn oversits books and papers to MIR. PIympton
when there books and papers were under
going examination by the Maine Commissioner;
the company could not comply, but did not refuse,
and Mr. Tarbox cut off the company from Massa-
chusetts business. Our oficious Commissioner pro-
ceeded, from the very beginning, as though he
meant to have trouble. His original orders implied
suspicion of the companys real estate investments
His dealings with the Maine Commissioner were
dscourteous, and inevitably created llfselinR,
His final order to Mr.. Plympton 20 proceed wi "a
the examination was insult both 10 the Commis-
sioner and to the Company. Thel1w Of Maine re-
quiring an examination is as binding and az much
entitled to respect is the law of Massachusetts
Did Mr. Tarbox think that our law was of such an
preme force that the company was under an oblica-
tion to withdraw its papers from the Maine Com
missioner in order to comply with it2
The urgency and haste with which he pressed his
demand add to the suspicion with which the whole
affair must be regarded. Mr.. Tarbox NAV con-
gratulate himself upon having completely nulliaed
the whole object of the law creating the insurance
department.. The object is to ADMIT qualified com
pantes to do business in the Commonwealth and to
exclude those not qualified. Mr.. Tarbox has sue
ceeded in rendering it impossible to know from his
action whether company Is In sound or an
sound condition. he has been satisfied with an
out looking into their liabilities; he has excluded
one company from Massachusetts upon an appraisal
OF some of its assets which very far from being Just
to the COMPANY; and now he has driven out COM
pany in pet because II did not obey his edict with
the promptness and alacrity which he deemed IL
the nrivileps of his dignity to insist upon, Con-
seonently neither is Mr.. Tarbox's certificate Of
solveney evidence that company is worthy Of
snpport nor is his exclusion Of company from the
state evidence that it has not complied with the
law. Moreover, he has so conducted the business
of his office that instead of helping to give conf
dence in what is sound and worthy of support he
has created general distrust OF all insurance COM
panies among those who do not know how III
qualified by experience and temper he 10 for the
position which he occupies. sezs