Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1892-05-26
A FOOLISH STATEMENT
Evidently Made Very Hastily by an
Ignorant Person
CONCERNING AUDITOR P. F. DUFFY
And the Conduct Of His Office, Denied and Clearly
Retuted by Mr.. Dufy-Mr. Duffy Has Dome
his Full Duty in All Gases and His
Record is More Than Clear.
Special Telegram to the Register.


CHARLESTON, w. VA, May 95 The
attention of Auditor p. T. Duffy having
been called to an article published In
the NeiC York Commercial Bulletin or
May 2lst in reference TO the chartering
of Wild Cat Insurance Companies, Mr..
Duffy has given 10 the REGISTER for
publication a statement OF his position
in relation thereto.
The following is the article referred
to:
Through the inaction of the StatelAudi-
tor of West Virgina-and we presume
Mr.. Patrick +. Duffy still occupies the
position and draws the salary therefor
West Virginia is likely To acquire as bad
repute as a hot-bed of wildcat insurance
swindles as did Pennsylvania year or so
ago. During the past few months num-
Der of wildcat fire insurance companies
have been organized in West Virginia for
the underground insurance business by
swindlers who have been driven out OF
other States. In fact, we understand that
some of the Pennsylvania sharpers are IN
terested in these West Virginia frauds.
Why has Mr.. Patrick F. Duffy, State Au-
dtor, not SQuelChed these concerns, as nc
can well do under the laws which
give him supervision of insurance
in West Virginia. If the wildcat
corporations were merely cheating
the citizens of West Virginia it would be
bad enough, but their policies are being
attributed throughout the country by the
dishonest surplus-line brokers, for which
Chicago and Philadelphia are particularly
notorious. These companies must in
short time make disreputable failures,
which will injure the good name of West
Virginia, and the state auditor should not
delay the locking Of the barn door he
certainly collects enough fees and taxes
from solvent insurance companies TO war
rant his conducting the affairs of his otdce
in a thorough and efficient manner. and IT
will not be on account Of our failure TO
remind him of his duty from time TO time
that West Virginia shall be further dis
graced.
Concerning the matter, Mr.. Duffy
says:
The article is a total Misrepresentation
Of the facts so far as it relates TO my duties
as Auditor of the State.
Our State laws authorize certain
number of persons to obtain charters to do
business either in or out of this State. A
number of so-called insurance companies
have obtained charters within the
last few months from the Secretary
oi State, the officer authorized and
required to issue such chartsrs under our
law. A small number Of the companies
so chartered have made application to me
for a license to Go insurance business IN
West Virginia In the exercise of my Off
cial duty | have refused a certificate of au-
thority to every applicant up to this date.
After diligent inquiry have been unable
to find that any of these companies
have written single risk on
property located in this State, and until
that shall be done 1 have no jurisdiction
over them even if they were located IN the
State. | have been unable to find that
more than two of these companies are in
fact located in the State, both of which |
have refused TO license. Not fewer than
five companies clam TO be located in this
State, no one OF which has an Office or rep
resentative here. The business is conducted
by brokers in other States. Ever since | have
been in Office the greatest care has been eX-
ercised by me TO prevent insolvent insur-
ance companies from doing business in this
State, so that in the eight years Of my
official experience only one licensed CON-
pany doing business in West Virginia has
failed, and its assets have recently been ex-
amined by the insurance officers OF two
States, and 1t was permitted TO do business
in those States after such examination.