New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-10-31
THE PEOPLES. INTERESTS.
WHAT ONE MAN ISrERpRErs THEM m .,
COMPLAINT REGARDING THE OFFICIAL coNDuc1
OF THE SUPERINTENDENT OF THE NEW.

YORK STATE INSURANCE DEPARTMENT
The following criticism Of the State superintendent
Of Insurance published IN "The Chronicle q
weekly insurance Journal published In this city, yes.
terdy:
WHAT ARE "THE INTERESTS OF THE PEOPLE,,
The Official conduct Of tho Superintendent OF Tia
New York Insurance Depart during the past few
months has been such as TO entitle him to no praise
but the other hand to subject him 10 much well.
deserved censurc. The most charitable term that can
be used TO describe the present administration OF tho
Insurance Department Is the word whimsical. Read
ers will remember the absurd reason given by the
Superintendent six months ago when he declined to
proceed against viostors Of the insurance laws after
sufficient evidence had been placed in his hands. He
said that he was too busy"
What important engagements so trespassed upon
the time of the superintendent that he unable
attempt the enforcement Of the insurance laws
has been made public although the people Of the state
OF New York have right to know why their servant
in the Insurance Department Is ncapacltaed for o.
tending to the duties strictly imposed upon him By
law. Tho fact that the superintendent Of Insurance
decided few days ago to begin the proceedings which
he declined to interest himself six months ago shows
very clearly the strength Of the evidence presented
10 him and convicts him Of having deliberately dilly
daied needless of the welfare Of the great Interests
which he has been appointed to supervise
This Is only illustration Of the kind OF State
supervision that Is regnant In New-Eork. and We
refer merely to show the utter disregard manifested
by the Superintendent toward the rights Of insurance
companies, which, In the regular course Of procedure
make their first appeals to him.
In the matter Of admitting companies to do bust
in tile State Of NewYork, the superintendent las
recently assumed dictatoria tone which it does not
become Insurance Commissioner e. put on. Sew.
eral companies have recently applied for admission
and have not yet received IT, although no god reason
appears why they should not have obtained Their
licenses long ago. One notable applicant is the
American Casualty Insurance and Security Company
Of BaltmOre-a corporation having one million dollars
OF paid In capital and cash surplus OF one half million
dollars.
Let us see what authority the superintendent has
under the law to refuse admission to q company from
another State applying for permission to transact the
business Of insurance in the State Of New-iork We
quote in fu the second section OF Chapter 6o3 OF te
Laws Of 1873, in which these powers are defined
sec. @ The said Superintendent shall have power
to refuse admission to any company, corporation or
association applying 70 be permitted to transact the
business Of insurance in this State from any other Stlts
or country, whenever upon examination the capital
stock Of such company corporation or association, shall
be impaired, and also whenever In his Judgment such
refusal to admit shall best promote the Interests Of the
people Of this State.'
As there can be no doubt that the Baltimore COM
the state Of Maryland. that the and one half
millions Of dollars with which 1t be-ins business
arc invested IN the sOundest securities and that It's
capital stock Is not impaired, 1t follows that the su
pernendent OF has far refused to license
this company because In his Judgment, such refusal
to admit shall best promote the interests OF the people
Of this State
II would seem to be IN the interests Of the people
have all financially sound Insurance companies, Or
conized and Differed by responsible men, admitted 10
do business In this state. They are entitled to have
every benefit which results from the rcest competitiop
provided that the companies soliciting business are NOS
wildcats, No question win be raised to the
financial strength Of the baltimore company nor as to
tho responsibility and high standing OF Its organizes
and officers. 1t proposes to transact lines W insurance
that are already being prosecuted BY other companies
doing business In the State Of New-York
The insurance supervising officials OF thirty States
have admitted this company without question In orto
to best promote the interests OF the people
We understand that the Attorney General OF Tho
State of New-YOrk and the Official associates OF tho
superintendent In the Insurance Department can ma
no objection TO the admission OF this company. Why
then, should Superintendent Maxwell assume an M
reasonable and autocrsc tone and decline to allow this
company TO como ins His defiance Of the counsel d
his customary advisers lseves him Hothins to stAns
upon but the platform Of whinscalty or STUB
bOrnness.
Moreover tho Insurance Commissioner Is incon'
sstent. The State Of NewYork has created one
corporation which closely resembles, In the matter "
charter privileges. the new Maryland corporation.
1t has also admitted corporation nom iorcsu
country whose charter quite broad a. the cart
of the MARYLAND company. Why the lnsuranc" D
partment having admitted Company from across the
sea should refuse admission Ia corporation nom "a
neghboring State Is hard to understand ana prooaov
no explanation can be made which Will he creditaoe
tho Department at Albany.
What now becomes Of tho nne arguments made two
or three years ago. In perhaps score or more staes'
BY an officer Of tho Fidelity and Casualty Compsn!
touching the beauties Of comfy between the stat@'
Proceedings had then been begun under retaiatSn
laws to Dust the Fidelity and Casualty rom uumeros
might be Organized 70 do the same Mnd OF sns sss
State Of NewYorG: The Fidelity ana t.:usy IN sS
person Of It's distinguished vice president went 1%
S arss sne states q ' Should not rs.ss against By
kicking out the Fidelity and Casualty until some oea
d ,na Sss so @
| TO the state Of New. York ,,.,.
S and q r., such sh.s Ss Ssaa principle Of
the. TT sSsa Ct Si he SSas
WingMess to grant tho corporations OF other ~
ASr S%%e not 8. nss .u%sa un
many uSe the Fidelity and Casualty, hailing from 81
other state, license had been refused sy mo wv
ment u Albany. -, ..... A.sN
The Insurance Departments Of other stare ss.tsnd
k;xdly with the New. York corporation and they
With approval to th. doctrine d state cSmyb ssss
| the superintendent OF ne Eew-YOrk Insurance -
partmsnt this admirable doctrine Of STATE cpmy;
the law which gave 20 nnch trouble two ~ nat nov .
our knowledge any law on the sta9te BOOKS s o. -
state prohiht,ng The insurance COMMISSIONS ir1a
hitting the BSlumore company. 49, ..,.x n
The superb tendents power. are fully aenn. .
the seeti0n quoted end tseee cen Be no quoStom
how 10 should copstrue his discretionary privi a.
he has any regard for tho nlce principle comy:.
Departments two or three yesrs ago. L...sA
me present sour.e e the Nsw York psPt = -
two states. II the state OF Maryland shounl -
rs doors 70 certain New-York eompaniss tAe
stAHce would b very unpleAsant end coep"
| would ans& .., ..
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