Evening star., 1902-09-03
LOCAL INSURANCE.
REPORT OF sUPERINTENDENT
FOR SIX MONTHS.
Last Half Of Past Fiscal Year-Num-
Der Of Companies Operating
in the District,

The first report of the insurance depart
ment was submitted to the Commissioners
of the District today by Mr.. Thomas E.
Drake, the superintendent The report COW
ers the final six months of the last fiscal
year, ended June 80, the department hav-
ing been created January / by the new
code of laws.
Before commencing business" says Mr..
Drake, 'it has been the custom of most of
the states. believe, in creating independ-
ent insurance departments, to allow from
three to six months to prepare license reg
listers, necessary documents, etc, upon
which insurance companies may qualify
No provision of this kind was made in es-
tablshing this department: therefore, all
OF January and part of February last was
devoted to this work by myself and the
then only one clerk of the department.
From January to July 224 insurance
companies associations and fraternal or
ders applied for admission to do business
in the District of Columbia. On July 1 144
Of these had been licensed for the prelim-
mary term of four months, running from
January / to May 1, which latter date is
fixed by law as the anniversary of all IL
censes
Preliminary Licenses.
During this period preliminary licenses
were issued as follows: Principal agents.
109; solicitors, ordinary, 1856; solicitors, in
| dustrial, SO brokers. II, the fees upon
which amounted to s267T.33. Total ex-
penses Of the department during this period,
including salaries and office furniture, were
S2,70S-07. No taxes have as yet been col
lected. 1t is estimated that the receipts
from these two sources for 1902 will amount
to $4,000 or $4,000
Superintendent Drake next gives a list Of
the various companies which withdrew from
the District of Columbia or were reorgan-
lied during the six months covered by the
report and also details the various methods
taken by the department In dealing with
questionable insurance concerns. Continu-
ing his report, he says:
There are thirteen joint stock fire insus-
ance companies chartered in the District
of Columbia by special acts of Congress or
under the general laws of the District of
Columbia, three mutual fire insurance COM
panies, two joint stock life insurance COM
panies. one plate glass insurance company
and ten assessment associations and fra
ternal orders. In my judgment, all Of the
local life insurance companies, associations
and fraternal orders should be examined
annually, and all the fire insurance COM
panies triennially, or oftener If deemed nee
essary.
Ruling Issued.
Finding no provision In the law for es-
tablishing the solvency Of regular life in
surance companies. l found it necessary to
issue Ruling No. g. which provided:
"First-The standard of reserve valua-
ton on life insurance policies of all kinds
must be based on the American experience
table OF mortality and per cent interest.
"Second-ReServe on all kinds of old line
life insurance policies irrespective Of plans
or conditions of the policy contracts, must
begin and be maintained during the exist
ence of the policies, on the above standard,
from the time of issuance of policies TO
their termination, whether the policies be
issued on the regular term plan. ordinary
rp
of any stipulated provision in the applica-
tions respecting the right OF companies to
value policies the first year or subsequent
years as preliminary term insurance.
The work of the department has been
greatly handicapped for want Of sufficient
clerical help, and this accounts for being
behind several months in the issuance of
licenses to companies, agents and solici-
tors. During the last session OF Congress,
however, a law was passed providing for
one examiner for the department. and 5000
appropriated for extra clerk hire.
In addition to these provisions there should
be statstician and stencgrapher, the
duties of which are explained in the esti-
mate of appropriations for the department
during 1903 and 1904"
Superintendent's Estimates.
In his estimates Superintendent Drake
recommends that his salary be increased
from s., 800 to $500, the latter being the
figure fixed by the code. He also asks for
81 900 to 81 500 In explaining the need of
a statistician at 1,50O he says:
1.-The duty of the statistician is to pre-
pare statistics for the annual reports; also
to assist in the examination of insurance
companies of the District of Columbia,
those outside when necessary, and attend
ing to such work as may be assigned him
by the superintendent.
stenegropher at 81 200 is asked for as
well as four extra clerks who shall work
four months at S5 each per month. Mr..
Drake also estimates for furniture, blank
forms, etc, and suggests that $500 be ap-
propriated for travelling expenses, saying
with regard to the latter:
This is conservative estimate in view
of the fact that the travelling expenses of
myself and assistants in examining only
the National Life Insurance Company, U.
s. A, will amount. when completed, to be-
tween 81 900 and 81 300. Insurance compa-
nies pay for supervision, in the way of
license fees and taxes, and examinations
should be conducted at the expense of the
department
An Emergency Case.
THE examination referred to above was
an emergency case, and on account of Con-
gress having made no provision for it, the
entire expense of the examination necessa-
rily had to be borne by the company"
In conclusion Superintendent Drake says:
The work of the department has but
fairly begun The effect, however, of SUI
pervision in the District of Columbia has
already been favorable felt, the best proof
of which is evidenced by not as many COM
panied qualifying in 1902-principally be-
cause they could not-than in 1901"
Each Fined $50.
There was trouble at 12O9 7th street
northwest last evening, and as result
Charles Robinson and Sylvester Gray, both