New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-07
WHAT Mr.. PAYN CAN m
INSURANCE MEN DO NOT FEAR Brs Al
TONS AS MUCH AS HIS INFLUENCE

THEY SAY HIS APPOINTMENT MAY LEAD orHn
| STATES TO DISCRIMINATE AGAINST NEW.
YORK COMPANIES EXTENSIVE
FUNCTIONS or HIS OFFICE
fFRoM REGULAR CONFESSION DENT or THE rRtHtrx,,
Albany Feb. Ga prominent member Of an In
surance company OF New-York CITY said comrren,
ing upon the appointment Of Louis y Payn "a sn.
perlniendont Of the Insurance Department.:
I'VE do not fear Payn assang ~ In any wav
bu, what we are apprehenslye Of Is a wltbdrars,
from us OF the confidence OF other States IN our In
surance companies fear that the superintendent,
OF the Insurance Departments OF sor1e States o,,
Of hostility 10 this State will make Payn's appoint.
mcnt an excuse for declining to accept his cor.
tacatcs as to the solyency Of various comparie, IN
this state. and viii send agents into tlis State %
examine our companies. a blight IS thus cast owe,
a large number Of Insurance companies In TIN.
state"
Insurance men also say that II any insuranc.
company gets I'm trouble the blame 10 iis bad con.
dition will be- swiftly laid upon Superintendent.
Pawn. although he may be- entirely Innocent Of is
misfortune Confidence ia the management u tia
Insurance Department has thus been lost 20 a isrgs
degree by the appointment
The duties ana powers % tho Superintendent 0.
the Insurance Department are u very extensive
nature. he has control and supervision q The H.
surance companies transac'ing business In this
state Of the lifc and casualty companies - tAls
State and Of those Of other countries The Ere AMI
marine insurance companies Of foreign Government,
deposit securities with him for the protection Ct
polcy-holdcrs living IA the United States.
Tho extent Of his power 10 cocr.o people can b.
Judged of by the fact that insurance companies or.
ganlzod under the laws o. other State or Countries
are required TO obtain renewals 81 their authority
from him each year. lie h. authorized 20 refuse
admission 10 any company corporation or asso-
citation applying FOR permission TO 'farsac. In
surance business in this State. whenever gpon 81.
onlnation the capital stock % the same Is found
10 be impaired. and also whenever such refusal
TO admit them shall best promote the Interests o.
the people Of this State Such companies are pro.
htlled from transacting business until They have IN
writing appointed the Superintendent 20 be tie at
torney for the company I'm and for this State.
The nature OF these dealings Of the sgp.rin-
terden, with the companies Of other states may 10
porcoiyed by n single incident Last November
woman Of Niagara Falls wrote 20 Superintendent,
Pierce regarding the financial strength u The Iron
Hall OF Baltimore and thereupon received the fo|
lowing letter;
state OF New-York Insurance Department
Albany. =. j.. Nov. Is. LA
Minnie Fhby. Niagara Falls; n y -. ,.,s g..
b DG Tron M Ha Of Bamors Md ha. no aSthoass
ton transact business Of insurance m this sa,A
II has no deposit with our Department Tor ne pro-
service Of process in this State and In the event Of
having claim against II, much diincl'y may arse
i'm commencing the action.
The Iron Hall of Indianapolis now In the hands OF
a receiver was never under supervision ~ this De:
partment we having on several occasions refused
il a license 10 carry on business IN this state.
am Of the impression that the Iron ltall OF ga.
timorc IS as you well describe IT, another afsf
arisen from the ashes OF the old concern. wor.ns
on the same basis These assessment endowment
orders are unsatisfactory and unreliable ins't9'
9 to 1 tb h. PfSd d Is tor
the that the orders are not required - c1s-
enable the tulhlmen, Of contracts at the maturity
period Membership IN one or these concerns arms
with It the liability for EXTRA aSsessnen n, sI ~,
turity or II the extra assessments are NOT levied
then the members will receive but small l@reea'
JAMES f. PIERCE. Superintendent.
Superintendent Payn will also have the tremen.
dous authority 10 visit and examine the books 81
any time he pleases Of the Insurance companies
corporations and associations Of this State. Tho
great companies frequently invite such an oXamns'
ton. but an unfriendy Superintendent, by the man
ner in which he executes this part Of his work. ncy
seriously harm a company. descent upon a gren
CORPORATION as though it suspected Of wrong.
doing might iniure its credit 10 tho extent Of hun
dreds OF thousands OF dollars Each Insurance com.
pany mus, submit 10 him report a 10 rs condi'
ton at regular intervals. lie thus has an insight
into the affairs OF every company. There Is 10
check upon him TO the number OF examiners 10
can appoint Mr.. Payn can let Loose hordes Of po-
Utical heelers OF no worth as examiners upon tie
insurance companies II he wishes 70 do so.
The Superintendent Of the Insurance Departr.ent
IS also large guardian of trust funds In ls.. for
instance he held in his possess for the protection
of policy holders in insurance companies the sum
of sl4.923777 "a.
The growth OF the business under he supervision
has also been tremendous In 1853 the risks IA force
Of tho New-York joint stock fire companies amount
ed to s719 251,slo; in 1881 they amounted 20 &Hs-
ST. In 1889 the risks In force Of the Join, stock COM
panles OF other States. amounted 10 &5iAe.r', IL
1880 they amounted % ASST 23oJ. IN i,Ss the risks
I'm force Of the Ncw-York mutual fro companies
amounted TO sS7.3J0SJo; IN l%o they amounted 10
SEE 232 In 1883 the amount OF risk az the llls W.
surance companies amounted 10 only $NA,., IN
1881 il amounted 10 S.5i2,ssJ.ijl u.
The Superintendent Is required 10 give a bono OK
s25 for the faithful discharge OF his Official duuea
and il prohibited from being directly or indirectly
Interested I'm any insurance company. Ills salary =
fixed At 200 "A year. and he has deputy ara
necessary clerks 70 dis harge the duties Of the once
The entire expenses OF the Department. aWoinths
TO about $1,000 year, are paid by the cOrpoiauohs
under its supervision.