St. Paul daily globe., 1895-10-02
ATTORNEY GENERAL CHILDS
RENDERS AN OFFICIAL
OPINION ON
STATUS OF SALVAGE CORPS
FIRST ONE ORGANIZED IN MIN
NEAPOLIs Is THE ONLY LE-
GAL CORPS.
EXHAUSTIVE REVIEW OF CASE
And Definition of the Duty of
Commissioner Smith Under
the New Law.

In reply to a request from Insur-
ance Commissioner Smith, Attorney
General Childs has written the fol-
lowing opinion concerning the organ
ization of two salvage corps in Min
neapolis. The opinion is self-explana-
tory:
Hon. c. H. Smith, Insurance Com
missioner.-Dear Sir: Under the re-
taliatory feature of the insurance law
of this state, it is provided that: Amy
insurance company of any other state
or nation doing business in any city
of this state wherein there is a duly
Incorporated board of underwriters
that has organized a salvage corps as
provided by statute, and such insur-
ance company or its agents are not
subject to taxation for the equipment
and maintenance of said salvage corps
under this section, then such insurance
company or companies shall be sub
Ject to tax equal to per cent on
the gross amount of the premiums re-
celved by said company in such city,
which sum shall be payable to the
treasurer of said board of underWrit-
ers, and shall be by said board of un-
derwriters used solely for the equip
ment and maintenance of said salvage
corps, and such tax shall be in addi-
ton to all taxes, penalties, licenses
and fees provided in this act to be paid
TO the state of Minnesota by such in
surance' companies or their agents."
In April, 1895, the Minneapolis Board
OF Fire Underwriters was organized
in the city of Minneapolis for the pur-
pose of organizing and eQuipping a sal
wage corps and fire patrols in that city.
On or about the first day of September
following, the Merchants Board of
Underwriters was incorporated to
carry on substantially the same busi-
ness. 1t does not appear that either
OF the said companies is composed of
underwriters in the strict sense of the
term; but 1t seems to be admitted that
the flrst-named company is made up
Of persons actively engaged as agents
In the business of fire insurance. The
hrst-named company has heretofore
requested the various fire insurance
companies doing business in Minneap-
oils to advance one-half of the tax for
1885 in order to place the salvage corps
Immediately upon a working basis.
and has requested you to countersign
the receipts as evidence that the COM
panies would not be compelled to nav
the tax over again. The companies
upon whom such request was made
have. as l understand the fact. as
sented to that manner of payment
provided the receipts given by the SAL
wage company are countersiyned as
aforesaid. The second-named company
OD1eCtS off ;4I s..1
ment, and urge that the other COM
pany is not only not entitled to all
of the moneys derived from such
sources, but that it is not qualified tn
receive any portion thereof, for the
reason that 1t is not a company Or
ganlzed by underwriters as the statute
directs
The act approved April 13, 1895, con-
1ers upon boards of underwriters in
corporated under the laws of this state.
power to make proper provision for
the preservation Of property from fires
in cities Of over 5000 inhabitants.
You inquire, in substance, which. If
either, of the said companies is entitled
to the said moneys, with a view to de-
termining whether or not you shall
indorse the receipts given by one or
the other of the said companies.
am clearly of the opinion that such
Endorsement by you is not required by
law. The law implies that a non-resi-
dent company of another state doing
business in this state shall be subject
TO the same exactions imposed by the
other state upon Minnesota company
dolng business In such other state It
is not made to appear that the insur-
ance commissioner of any other state
is required to perform the service now
requested Of you. While you NAV
deem it not improper to comply with
the request, you are not, as above
suggested, required to do so
II L am correct in this conclusion.
the question is disposed Of so far as
your office is concerned, but counsel
for the respective companies are So
fictitious that I express my views as
to the compare tive rights of such COM
panies to the said moneys.
The law was, in my judgment, suffi-
c1ently complied with in the organiza-
ton of the first named company. The
purpose Of the law is, the organization
OF salvage corps by underwriters for
the preservation of property. If un-
derWrlterS recognize a company organ
lied by their agents as a. proper agency
LOT Ihe disbursement of such moneys
the law is sufficiently complied with.
Furthermore, am of the opinion that
the law does not contemplate the ex-
1stence of more than one company In
city. The companies are directed by
the statute, which is about to go into
erect, to pay the moneys to the board
OF underwriters. While the act ap-
proved April 13 speaks of boards of
fire underwriters, it does not do so in
the sense that more than one board
may exist in a single city.
The plural form is employed because
the legislature was addressing its at
tent1on to all such organizations in the
state. A careful reading of that meas
ure falls to suggest to my mind any
other construction.
The first named company should
therefore be recognized as the only au-
thorized salvage corps in the city.