Evening journal., 1900-07-09
lNEXCUsABLE INCOMPEIENCY

lNEKCUSABLE INCOMPETENCE
When the Legislature passed the law
regulating the business Of foreign loan
associations in tins state, il placed
tLsm under the State nsIciu,e COM
missioner and invested him with exec
ut,,e and inquisitorial povcrs. IN bis
carrcity as State insurance camm.s-
sicner DR.. Edward ronlcr. Ct LAUREL
has made a dismal failure in this par
ticular respect But for his official in
capacity the Delaware shareholders in
the Republic Savings and Loan Asso-
citation would be protected in their
holdings. AS it is. DR.. Fowler has left
them at the mercy Of this concern
which has gone into the hands OF re-
ceiver.
The law provides that any foreign
loan association coming into Delaware
to transact business shall deposit with
the state treasurer good and sufficient
securities to protect those with whom
II does business, and that until such
action has been taken the state insur-
ance commissioner shall issue no
license to such a concern and shall
prosecute its officers If they presume to
operate without license. 1t is his duty,
before issuing a license, to ascertain
whether the secureties prescribed have
been lodged in the Office Of the State
treasurer and formally approved. Let
us look at the facts.
An attorney for the Republic Savings
and Loan Association came to Della
ware and offered State Treasurer Ball
as security a batch of second mort
cages on New Jersey farm lands. He
refused TO accept them. not deeming
them good and sufficient. In the face
of this, State Insurance Commissioner
Fowler. permitted the Republic Savings
and Loan Association to open Offices in
this State and openly transact business.
Hundreds Of Delawareans put their
savings in the hands Of the agents Of
4 the association, and to-day they do not
know positively that they will get back
a 1.-THE Of what they put in. Upon State
Insurance Commissioner Fowler, and
upon him alone, the odium for this de-
plorable condition rests. Even il it
decided that those who have suffered
such great loss by reason OF his official
incapacity and negligence can proceed
against his official bond and recover,
the amount Of that bond is grossly in
adequate to meet the demands which
will be made against il.
This condition teaches a lesson which
should not be ignored. Heretofore the
office Of state insurance commissioner
has been regarded as more or less of a
political sinecure, with good pay and
little work and responsibility. 1t has
been deemed good berth for any
worn-Out and impeeunious politician. Il
has mattered little whether he knew
an insurance policy from a chattel
mortgage or building loan shares
from a writ Of replevin, so long as he
had done good party service and was in
need of a job.
When the Office first was created II
was believed that the fees prescribed
to be paid by insurance companies
would just about pay the expenses o
their supervision. But the Insurance.
business has grown TO such proportion
that the law not only brings in revenul
sufficient to defray the expenses Of it
execution. but a large surplus besides
From the report submitted to the Leg
islature on February "a 1899, by DI
Fowler. State insurance commissioner
we take the following statement Of re
ceipts and disbursements-not includ
ing his salary, s1.400, and his printin
bills. aggregating several hundred dol
lars-for the year ending April 1, 1S9,
and for the six months ending Octobe
], 1898:
Fees for filing annual state
ments, charters, issuing
certificates and licenses, ,etc.S 6,490
The IL per cent. tax on gross
premiums collected in the
State, ....... &C.. -. ...... 13,457
Total receipts ......... ....$ 19,947
Paid for postage, express
charges, etc, ..-...... 80. 43
Total payments, ....... &C.. 43
Excess Of receipts over pay
mentS ....-.... 80. .-..-.S lS,9O4
For the six months ending Octob
j. 1898:
For filing annual state
ments. charters. issuing
tincates and licenses, ETC. 1852
Total receipts .............. 1852
Paid for postage, affidavits,
etc, in re Commercial In
surance Company .. 42
Total payments ... AZ
Excess Of receipts over pay
ments ............ 80. 1.039
The reports for the year endi
April I. 1898. show an increase
s2,ss3.72 over the preceding year.
Thus it will be seen that the revenI