The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-11-29

of the companies organizing Hereunder as
the members may decide upon. The members,
In the adoption of such bylaws, invariably
empower the board Of directors to fix tie mat
ter of compensation OF officers, and other e&.
penSes incident TO the general conduct and
management of the business, as Ia their good
Judgment they may deem best. The by
laws OF several OF the companies also further
provide. that while the members shall be
liable for their pro rata share Of an assess.
ment sufficient to meet all accrued losses,
together with management expenses, at the
same time. said members shall be required to
accept latter the payment in full of manage
ment expenses) their pro rata share of what
may be realized from the assessment thus
levied, as payment in full OF any claim for
losses which they may hold against the
company.
directors have. in the past, voied TO certain
of the officers a compensation in the way Of
commissions upon the total amount of busi-
ness written, and the officers of two or three
of the companies, owing to the very heavy
volume Of business placed upon their books
during the year 1897. received what mus- be
considered very excessive conn ensatton for
their services. While such Office 3 drew
from the amount realized upon the assess
ment practically the total sum voted to them
per the resolution of the boa.l of direct
ors the members having claims against the
company on account of losses failed to re-
ceive the full or face amount OF their claims,
AS the statute practically legaHzos such a
condition OF affairs, the comm,ssi)nsr was
fuse such companies 4 renewal Of heir L.
censes. Each and every company, Eowevt r
was arbitrarily required by the commissioner
to PASS a resolution, and file COPY of The
same with the department, limiting 20 g -ea.
soDable amount the compensation of olf1c srs
to a certain stipulated salary, and absolutely
prohibiting the payment Of any commissions
TO such officers In addition thereto. This as
sures the farmers who may be members Of
these companies that they will be relieved
from paying further Assessments to cover
any exorbitant expense incident % the man
aSement OF the business, and should afford
them protection against loss or damage 10
their crops for a nominal or reasonable sum
barring, OF course, any unusual disas laus
storms.
The present statute should be very ma
teriaily amended, so TO throw every safe
guard about the management OF the affairs
OF this class of companies thus preventing
the possible repetition of extrayagant or ex-
orbitant expenses in the future. The COM
panies were also required to pass a further
resolution, providing that at the next regular
annual meeting of its members the provision
of the bylaws requiring the members TO ac-
cept their pro rata share of the amount
realized from the assessments levied in any
one year as payment IN full OF their claims
should be eliminated so that in the future
| all companies which may be unable to pay
their claims for losses in full will be treated
as insoivent. thus empowering the Insurance.
! commissioner TO proceed against t. whenever
the condition OF company is found 70 be in
! solvent With the bylaws thus amended
| the farmers, who may become members OF
these companies can have the assurance that
| their losses viii be paid in full; otherwise.
| the companies must cease doing business
l can say for the officers of the majority of
| the companies, that no objection was raised
against limitation of salaries and prohibiting
| the allowance OF commissions in the future.
| the required resolutions, covering this mat
| ter, being apparently cheerfully passed and
| copies Of same promptly filed with the in
| surance department.
There can be no question but that the pur-
| pose object OF the legislature in placing
upon the statute books OF this state the law
providing for the organization Of mutual hail
| and cyclone insurance companies was that OF
! anording our farmers an opportunE TO mu-
\ tually join together and protect each other al
mere nominal expense against excessive
losses, sustained through hail or cyclones, to
| their crops, and they certainly should not
! be required or asked TO pay assess ments COW
/ erlng excessive commissions voted 20 certain
/ ofncers OF the companies by the board of d.
rectors. 1t is 20 be sincerely hoped that the
statute In question will be SO amended as
| legally impossible