Omaha daily bee., 1901-01-05
REFUSES TO PAY The BILL
Insurance Company Says 1t is Charged Too
Much for Examination.
CAMP IS IRATs OVER BttHLtRs REPORT
Secretary of n Reserve Fund Associa-
tion Writes state Auditor Merriam
Explaining Some Points and
Making severe Accusation.

DEs MONIES Jan. 4-special. To-day
has brought still further developments in
a state matter that recalls the time, fifteen
years ago, when John L. Brown. then audi
tor OF state. was forcibly elected from
his office by a company Of the Iowa National
guard called out for that purpose literally
dragged from his desk in his barricaded
Office and suspended by the governor OF
the state, and subsequently tried on i'm
peachment charges and acquitted all bO-
cause he had made use of his power ald
authority in the examination OF insurance
companies virtually to extort money from,
them and to make them pay exorbitant bills
for examinations. The case was a notable
one In Iowa, and while 1t was a lesson which
fell with great hardship upon the auditor
II was supposed that for all time the prac-
tice of making exorbitant charges for ex-
animation of insurance companies had been
ended in the Office OF the state auditor, and
that the system OF holding up big eastern
insurance companies doing business in Iowa
would no longer be one of the fruitful
sources OF revenue OF the auditors office.
In October last an insurance examiner,
Mr. Beehler, was sent by the auditor OF
state to New York to make an examination
vi tNV uldNttIs III ifShlh W Nnt MUTUAL iNt-
serve Fund Life association. II appears
that the examiner took his son along as
clerk and that he set about making an ex-
animation In general OF the affairs OF the
company. something not proposed in the
preliminary correspondence. He spent FIVE
days az the office of the company. In
November he forwarded a bill for $4S9 rs
for his services and expenses. The bill
was not paid Some further correspond
ence followed and the Reserve Fund with
drew from Iowa business. The next heard
OF the matter was the publication in local
insurance journal of report OF the ex-
animation OF this company made by Beeh-
Ter for the Iowa insurance department The
report says that the examiner was rudely
treated, made many complaints about the
management and generally gave the com
pany u bad reputation. The report appeared
In special edition OF the insurance jour-
nal and was copyrighted and sold to agents
OF other companies in Des Moines and was
at once In great demand.
The next chapter adds to the interest
Today State Auditor Merriam received a
long communication from Secretary Camp
of the Mutual Reserve Fund association.
Camp cites the fact that he received
copy OF the Beehler report December "a,
which was sent him December 20, and that
1t had appeared in the insurance journal
In Des Moines two days before It was
givon to the company. Camp notifies the
auditor that the bill for $iS9.7S was dis.
allowed because the examination attempted
was not the one assented to and, even il
1t was, the charge was exorbtant. Camp
then refers to the correspondence showing
that Beehler started to make different
examination from the one assented to. He
then declares that Beehler did not devote
an hour of the five days to making the
examination agreed upon. But in his BILL
which he made out for eighteen days at
$40 per day, he includes three days trav-
cling to New York, and among other
things includes one day devoted to prepar-
ing and filing the report in the auditors
Office. Then he quotes the auditor in a
subsequent letter, saying that the report
had not yet been filed, and still later de-
claring that 1t was filed on a day more
than six weeks after the day which was
charged up to filing the report. Beehler
also made charge of $3077S, which Is
included In the item of travelling ex-
penses and hotel charges and incidentals, -
which is, according to his count. si7 81 a
day, or, according to the actual time used
In making the examination, s61.96 day.
Mr.. Camp closes his letter to Auditor Mer-
Dy utuyiuB III tOlO many Ol the most
emphatic statements of Beehler in his
report of the examination and denouncng
them as false in every particular.
Another case which involves the matter
of charges for examination relates to the
examination of a company at Toronto, Can
ada, where more than $500 was charged
for the examination. The fight between
the insurance department and the big east,
ern companies in this matter is creating
. sensation in local insurance circles and
It Is expected that the reply of the state
auditor to the letter of Secretary Camp
will be equally sharp.
Guards Asphalt Contracts.
Alderman Mcdonnell of Council Bluffs
was in Des Moines today and employed
counsel to look after the interests OF
asphalt contracts in Council Bluffs against
the contentious OF the Des Molnes Brick
company that the contracts contemplated
are illegal. The contracts provide for n
fve-year guaranty and also that the COM
Iany shall maintain the paving ive years
II Is claimed this latter is in conflict with
the Iowa code In that IL makes an extra
burden on the abutting property The con-