The times. [volume] (Richmond, Va.) 1890-1903, 1897-12-02

panies chartered by this State. Without
capital. they have advertised extensively
for business. and issued policies, ana,
when losses have occurred the suHerns
pOlcy-holders have awakened 10 the fact
that they had been swindled and the
swindlers had departed.
Building and loan associations are null
tlplying rapidly. and becoming important
factors in the growth and progress OF our
State. They gather in the savings OF
thousands o. poor people and when prop
erlv conducted they are blessings TO those
who are without homes. Like banks and
insurance companies, there should De
State supervision over these associations.
81, therefore, recommend that an act
be passed creating the office OF examiner
or commissioner Of State banks. insur-
ance companies. and building and loan u.s.
sOciations, with such powers as you may
deem necessary To protect Stockholders.
depOsltOrs and pOlicy-hOlders therein, the
salary or fees of said examiner or com
missioner 10 be paid by said banks. COM
panics. and associations.
| respectfully renew this rccommenda-
ton 4 continued consideration of the
To the Importance Of State supervision
over these business institutions.
DEPOSITS BY INSURANCE COM
PANIES.
quote again from my message OF
1856:
Foreign insurance companies life and
fire. are required 10 deposit with the
treasurer of the State bonds OF the state
United States. or certain cities. 10 an
amount equal 20 five per ccntum Of their
capital stock not TO exceed $4,000 nor 90
be less than $1,000 These bonds are held
for the security Of the insured. and. IN
case Of the default Of "a company 90 pay
any ~ it's liabilities. the bonds are di-
rcctcd TO De- sold 10 satisfy the same II
can work no hardship 20 require home
rompanies 20 make deposits upon the
Same basis. They Will draw the interest
upon the bonds deposited. and hv fur
nishing security 20 their pulicy-hOldcrs
Will strengthen themselves in the Cnn'i-
dence or The public and enlarge their
business 80 bona ide company or one
sufficiently strong to DO business and
merit confidence. il seems To me. would
object. and If tho deposits are required
no fraudulent concerns could 10 the iu-
tuTe impose Their selves upon tho public.
Z. therefore. recommend that an insur-
ance companies. life and fire. chartered
ny this State. and low doing business in
this State. be required within "a reason
ahle time. 10 he fixed 10 the act. Ia de-
post with the treasurer Of the State
bonds Of tho state. United States or such
cities as you may designate. 10 amounts
equal 90 Eve per centtm NJ their pee
spective capital stocks. not to exceed in
any case 5000 nor he less than $1,000
and that Cufnp4rie~. associations. or SEA.
cieties doing business cn the mutual or
assessment plan he required 20 deposit
the same securities I'm such amount as
you may deem proper.
/ further recommend that no company.
association or society hereafter charter
ed under the laws ~ this State. shall be
permitted 20 do business or issue policies
or certificates OF insurance until u shall
have made the deposit required above or
companies a-sociItiuus, ana societies nov
chartered and doing business.
ne ABOVE Views were NtllNffIielN pN-
pressed. and the recommendations were
maturely co1siierd, and ann AZ iuiy con-
NihccQ now ds / Naf TWO years ago thar
your honorable bodies should act upon
,he lines indicated The General Assem-
bly, at its last session We're i;u9elled. IN
order 10 protect the public against Inn
position and fraud 90 repeal twenty-five
charters Of fire insurance companies
which had been granted by Circuit Courts
IN different sections Of the state. and
which companies We're being operated
without capital. securing an inc policies
possible and collecting the premiums ana
paving no losses. They were. IN iact' bald-
FACED frauds and many pOhcN-hoiders
suffered by them.
Pursuant % Section or an Act entitled
IAN Act for the distribution. among those
entitled. OF the direct tax money donated
by the United States Government APP
proved March ?rd 1872. an The irelsurers
ana commissioners OF counties anu cites
IN the State TO whom were ptih ,uc Va
.rious appOrtiOnn ents OF the difcct TAX, by
the Governor II the Commonwealth, made
their final settlement on the seconu Jay
OF March. 1897. except the COMMISSIONERS
OF the counties OF Bedford ana Prince
George. who were directed TO turn over
an money i'm their hands remaining or
said direct tax TO the supervisors OF their
respective counties. TO be used 10Y roau
purposes 80
See Acts 1894. page 49, Acts lSo-5'
page 706
In the appendix hereto will be round a
list OF the counties and cities In which
all OF the appointments had no, nesh
expended on the second day OF March;
lN' with the names of the treasures hnu
commissioners and the amounts III 'heir
hands.
Under the provisions OF section OF