Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-16
Auditor Merriam's Examina-
ton of Eastern Insurance
Companies is Criticized
SOME DOUBT AS TO LEGALITY
Big Fees Demanded and Received
From the Companies fora Few Hours
Work-Executive Council Takes UP
the Subject, But Sees No Method of
Correcting the Alleged Abuse.

Des Moines, Dec. 16.-The executive
council in the course of it's session yes
terday discussed the charges that are
being made in the Insurance Press of
New York and in communications that
are reaching the governor from insur-
ance agents against Auditor of State
Merriam. The Insurance Press in Its
last issue represents that Auditor Mer-
Ram and his insurance examiner, Max
Beehler, of Manchester, recently spent
two half days in the office of a New
York insurance company and presented
and collected a bill for $3.50 for the
service. Mr. Merriam has been in thu
east about month and the Insurance
Press intimates he and Mr.. Beehler are
busying themselves making examin-
atoms and are putting charges on the
companies that are disproportionate
The authority OF Mr.. Merriam and Mr.
Beehler to make the examinations is
questioned, and it is intimated he Is in
haste to make examinations because
his term is near the end.
Not only is Mr.. Merriam's policy at
tackled by the Insurance Press, but it is
known a number of complaints have
come to the state house from agents
of eastern companies. Governor Cum
minis has received various complaints
that Mr.. Merriam is examining COM
panieS that he has no warrant to and
that excessive fees are being demanded
for such service.
In one way and another members of
the council have been talking these
complaints over for some days. Yes
terdaythey were freely discussed at the
council meeting, Governor Cummins
ing present, the auditor still being in
east. The questions before the council
are whether the auditor has any war
rant to make such examinations with
out authority from the executive coun-
Gil and whether in case unwarranted
examinations are made and excessive
fees are exacted there is any way for
the council to prevent it and redress
for the companies.
A member of the council said last
evening, following the meeting, that
there seemed 10 way for the council to
prevent the practices complained of If
they are being followed. He said the
auditor, in his opinion, had no authority
to make examinations of insurance
companies outside the state without
being directed to do SO by the executive
council and that authority to make the
examinations had not been given by
the council. AT the same time, he
said, the REIMBURSEMENT general as
sembly had stricken out the provision
of law requiring an account to the
treasurer of state for fees for examin-
ing insurance companies, and under the
circumstances he saw no way for the
council to prevent examinations and
no authority to demand an accounting
to the state. He said he could see no
redress for the insurance companies if
they choose to aermit themselves to be
examined in an authorized way.
1t is said agents of companies have
already approached Attorney General
Mullan and had been informed the
auditor, in his opinion, had no authority
to make examinations of foreign COM
panies without being directed to do so
by the council. 1t is learned Governor
Cummins will hold conference with
Attorney General Mullan, probably to-
day, for the purpose of ascertaining his