The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-02-23
INSURANCE DEPARTMENT VS..
RAILROAD COMMISSION.
To the Editor:

1t is proposed TO enlarge the powers
of the Railroad Commission so as to
give it supervision over all matters of
loan associations. Such proposition
is now before the Legislature and must
be acted on during the next Few days
The only arguments in favor of unit
ing and jumbling together such great
and varied interests in the hands of the
Commission, may be summed up under
three heads. viz:
1St. The Democratic party Is pledged
to oppose the creation OF new offices, in
volvirjg fresh outlay of the peoples
money.
md That the Railroad Commission
has plenty of time at its disposal to
attend to other matters than those per-
tanning to railroads. This is said to be
evidenced by the time consumed in the
active discharge of it's duties in the
past. averaging perhaps not as much as
one third of each month. and frequent
ly not nearly as much as that.
3rd. The Railroad Commission must
be maintained, and why not save money
by putting this new work on the should
ers of the Commissioners
Doubtless the above contains a fair
summary of reasons for the proposed
action, and is stated without prejudice.
Now what are the existing facts as to
the management of these several de-
pamments.
All railroad matters are supposed to
be regulated as far as the law allows
by the Commission.
All matters pertaining to the super
vision of Insurance are in the hands of
the Secretary of State.
Examination, &c, of State Banking
Institutions is done through the State
Treasury Department and Building and
Loan Associations by the State Audi
tor.
The Secretary of State has been al
lowed in the way of extra salary, GER
tain fees paid by the Insurance COM
panies. as directed by law These fees
have been for his sole benefit and are
supposed to amount to as much as S3.-
500 He has to perform the following
duties
1st To carefully pass ON the sol
vency and standing of all new compa-
MES applying for admission to the State
and to thoroughly examine their state
ments.
2nd. To examine with scrupulous care
all annual statements of companies
tsome 100 which are licensed to do bust
ness in the State.) He has then to
have a synopsis of each printed in some
newspaper.
3rd. He has afterwards to certify to
each County Court Clerk regularly, the
standing of all such companies.
4th. He has to collect and pay over
to the Treasurer of the State, all IL
censes. taxes and other fees paid 10y
these companies, save such as are allow
ed him by law. These become due in
January and July, the 1st of March
and the LIST of April of each year.
9th. to examine all domestic companies
at stated intervals, and
9th. To keep a watchful eye at all
times as to the condition of all compa-
nies to see that the interests of the
people are protected. This in exception
al cases often involves much CORE
spondence, and occasionally the examin-
alton of an outside company.
The annual revenue the State derives
from taxes and licenses from insurance
companies, is at present some SS6,000.00
GACluSiNe Ol the lees DdIu To the StGFe-
tary of State personally.
No complaint is urged against the non
performance of any duty by the Sec
rotary of State, who has made an eff
Gent officer, but it is now proposed to
turn these personal fees into the State
Treasury and with them to pay in large
part the Railroad Commissioners.
Doubtless good men will be appointed
as Commissioners, but those engaged in
Life Fire, Accident, Bond and In
demnity and other kinds OF Insurance,
seriously object to having their inter.
ests subordinated to those of any other
classes of corporations a. will be the
case if such miscellaneous mass Of
intricate interests are committed to
three men whose principal duty will be
to regulate the affairs of Railroad cor
porations. /.
If the matters pertaining to insurance
are to be taken from the present compe-
tent management, we hold with all due
respect to the honorable General AS
sembly, that the interests involved are
of sufficient importance and dignity to
be in separate department to be man
aged by Commissioner of Insurance.
A bill to this effect, which has been
most carefully considered by the House
Committee on Insurance, has been In,
troduced and is made the special order
for today at II o'clock
The amount of capital paid mp, OF the
various Insurance companies doing bust
ness in this State probably amounts to
fully S100,000,000.
The companies conduct their business
honestly. They pay losses promptly and
there is but little litigation.
In 1897, (the last report available)
the various Fire Insurance. companies
took 50,556.19 in premiums from
North Carolina. They paid back i'll
losses about go per cent. of this amount,
$500, 09S.20. In order to secure this
business the companies had to pay on
an average 30 per cent. as expenses, in
cluded in which is nearly 20 per cent
left also in this State, in the way of
commissions to agents, taxes, travelling
expenses, &c.
In that year these companies made no
money, but were of great benefit to the
State, and they pay the money with
which to fully support an insurance de-
partment. IT will not cost the tax pay
ers of the State a single dollar. and
therefore although an office is created,
it is one of which no man can complain
if the taxpayer does not have to pay
for it.