The herald., 1896-08-24
.ioner in San Francisco, as provided by

the code.
This particular dereliction Of duty on
the part of Insurance Commissioner
M. r. Higgins, and also the Title Insur-
ance and Trust co Apany, was discovered
by the Pacific Coast Abstract bureau,
the oposition company. by an accident
1t Is said, while investigating a claim.
The organization was not slow, however
to follow the matter up, and inquire of
the several state officials Through whom
1t might be the required deposit had
been made. From the insurance COM
missioner. bank commissioners and state
secretary the same reply was received,
viz: that no securities had been depos-
tied.
LEGAL LOOPHOLES FOR EVASION
The law Is proverbially uncertain, and
the only alternative to the insurance
commissioner and the corporation in
question having been actually broken,
the law lies in the hypothesis that the
title insurance companies are not re-
CURED to make the deposit of $100, 900
worth or securities actually with the
insurance commissioner. 1t is only too
true that sections of the code are am
bfguously worded, and as such ambigui-
Ties or expression always turn very
much to the advantage of the capital
1stlc interest 1t is apt to give rise to the
suspicion that the halo of uncertainty
enshrouding certain words has not been
placed there originally without pur-
pose.
For instance. in section 427, Civil Code,
which has been quoted from, sentence
almost at the beginning, reads: May
invest their capital, etc." There Is moth
ing imperative about the word may"
ana elsewhere the word must" takes
lts place. 1t would here seem as If
some alternative was being left to the
insurance companies rather than the
state government, In it's capacity as the
guardian of the policy holders. In the
courts now the lawyers would wrangle
over the boundaries of limitation that
hedge in that word may" The several
other quotations from the code, how
ever, taken in conjunction indicate plain
~ enough, apart from legal quibbling
that the insurance commissioner is the
appointed trustee to hold the $1O0, 900
worth or securities as a safeguard for
the policy holders in any insurance COR
poration.
POLICY HOLDERS IN A HOLE.
railing such Interpretation, what
safeguards are thrown around the policy
holders? The Title Insurance and Trust
company ranks high in the business
world, but Il it did not; if the men hav-
ing the conduct of it's affairs had not a
rigid regard for meum and teum during
a panic when real estate values might
be obscured, If not altogether wiped
out, what then? 1t would not be diff
cult to realize upon the gilt edged secur-
tiles, transfer the $4,000 or thereabouts
worth OF mortgages which are upon re-
cord and levant. leaving all concerned to
mourn their loss, but probably impotent
in any endeavor to recover from the
company. For this reason section 619.
Political Code, says: whenever any
insurance company or corporation has
deposited with the commissioner the
requisite security, in conformity with
the requirements of the preceding sec
ton, the commissioner must issue to
such company or corporation a certif-
cate, under his official seal. of such de-
posit, for each state or country requiring
the same, etc"
The certificate is hanging in the Of
flee of the Title Insurance and Trust
company, with official seal attached, but
where are the securities deposited?