Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1897-11-18

City anu f1lIdSS LluIuSlI LII Z LIE IL SiAASS
companies and reports of examina
tons The first twenty-five pages
are devoted to an exposition Of the
law relating to mutuals and its work
ings.
The commissioner says that he is
not hostile to mutual companies but
believes some changes should be made
in the law. He says that at the last
session of the legislature special ef-
forts were made by the commissioner,
with the assistance of a number OF
officers of various companies, to
bring about a change in the law to
meet the conditions and necessities
of these companies, but in the wis
dom of the Legislature, the bill sub
mitted was not enacted into law.
Convinced that the practices OF some
of these companies were illegal and
the business not properly conducted,
the question was submitted to the at
torney general as to the authority OF
this department to examine the city
and village mutuals, under the same
law authorizing the examination OF
all other companies. 1t was the opin-
ion of the attorney general, that the
language of the statutes was broad
enough to empower this department
to make these examinations, and act
ing under the authority of this decl-
sion, the commissioner ordered the
examination of all the city and village
mutuals. Reinsurance, accumulation
of funds, standard policy agents, COM
missions, local taxes, and eXamlna-
tions are among the subjects cOnsid-
cred.
In his conclusion the commissioner
defends himself with great vigor
against misconstructiOn. He says:
TT is we'll to remind those who claim
that these examinations were inau-
gurated by the commissioner OF in
surance simply because he was OPP
posed to this class of companies, that
it was this same commissioner, when
the legislature passed law compell-
ing each city and village, and town
insurance company to have it's annual
statement published in the official
state paper, and one other newspaper,
at a cost of $40 to each company, who
drafted an amendment, which was
adopted, exempting these companies
from such payment and publication.
What Indignation this law would
have occasioned had it remained as
originally passed and 215 companies
of this class been compelled to pay
SIS, 800 for something utterly useless
and of no benefit either to the COM
panies or their policy holders; of no
benefit whatever, except it be consid-
law. aside from the official publica-
ton, enables a pouucal officer to pay
political debts to political newspapers.
yet the same officers of these
companies would stand ready to
make such tax upon their compa-
MES almost a political issue, have
never yet raised their voices in pro-
test that there are today POI other
companies to whom such publication
is of no more benefit, yet who are
compelled to pay this tax neverthe-
less at a cost of 81, $40, which amount
of course is added to the cost of in
surance and paid by the people.
ct was also this same commissioner
who drafted the law eXempting city
and village mutuals from the use of
the standard policy, which the adop-
ton of the present policy law re-
pealed;- was this same commits
sioner, also, who drafted the law,
which was perfectly satisfactory to
the officers of those companies who
gave it careful investigation, and
which, if it had been enacted, would
have given these companies financial
strength and stability and which
would have meant death to the occu-
patton of the schemer and promoter.
Yet in these examinations there were
found in the books Of some of these
companies items of expenditure in
Cured in defeating the law drafted
for the benefit and assistance of the
honest companies.
1T was this same commissioner
who has talked and argued the vic
iousnesS of a valued policy and failed
to secure it's repeal or amendment,
because it believed that it only affect
ed the other fellow" Will it not be
we'll to remember, that no law can be
just that offers an incentive to crime?
This system of fees has been dis
grace to insurance departments and
in too many instances has been used
to legaliZe highway robbery of which
the insurance companies have been
the unwilling and defenseless victims.
The savings banks, and building ana
loan associations are examined by the
bank examiner at the expense OF the
state, why then should these great in
surance interests, that mean SO much
to the well being of the state and its
people, be singled for oppressive leg
islation. And if this question of 10
cal tax is tested and found to apply
to these city and village companies,
it will be well to remember that the
pages Of the reports of the present
commissioner are filled with argu-
ments showing the injustice of the
laws taxing insurance companies and
that in the end it is the policy holder
who pays the freight
"Yet notwithstanding all these eff
forts there are those who say that
the commissioner is opposed to these
companies. The only reason for COM
plant, if it can be such, is, that the
commissioner has but one standard
of honesty and justice, and does not