The Pacific commercial advertiser., 1903-11-28

individuals does not come under, or is |
it subject to the provisions of Act So: |
"An Act to Regulate and License In |
surance Business in this Territory"
a Surety Bond is not insurance un-
der any sense of the definition of the |
word, and cannot be construed as such |
under this law, if it is, then every per-
son or CORPORATION in the Territory be-
coming Surety on the Bonds of indiyid-
uals is violating the law and would
come under the provisions of this Act
50. Yours truly,
THE FIDELITY INSURANCE CO.
LTD. By Emmett May.
Honolulu, H. T., Nov. 9th, 1908.
Mr.. G. E. Smithies, Deputy Insurance
Commissioner, Honolulu
Dear Sir: Your communication of
the 18th inst, in reference to The
Fidelity Insurance Co., Ltd, in which
you state that the payment Of capital.
investment of moneys and methods of
doing business of said company are not
| in accord with the requirements of Act
| So of the laws of 1903, was received on
| the 25th inst
| In reply will state that we contend
we have complied with all the require
ments of said Act
| Payment of Capital: Section T. re-
quires not less than one hundred thou
sand dollars subscribed capital, of
| which fifty thousand dollars be paid in
| in cash before the issuance of any
policy of insurance. This we have
| complied with as will be shown by our
books and the minutes of our meetings.
You have already admitted that we
have complied with the provisions of
| Act SO, as will be shown by your Ger
tificate of Authority issued to us on
| Oct. 1st, 1903, which was issued under
the requirements of: Section 4. The
Commissioner shall issue to any insur-
ance company or corporation a Certifi-
cate of Authority to transact business
in this Territory under the following
conditions:
/ First: If Company. or Corporation
organized under the laws of this Ter
ritory, when he is satisfied that the
provisions Of this Act in relation to
such Company or Corporation have
been complied with"
If you were not satisfied that we had
complied with the provisions of this
Act at the time you issued us a Ger
tificate of Authority, then you have
violated the law yourself which action
on your part is liable to cause us great
injury, damages and expense, and we
hereby notify you that any action by
you or the Insurance Commissioner Of
ficially or otherwise is liable to injure
our company and that we will hold you
responsible for any damages you may
cause our company to sustain.
You cannot claim that our capital or
assets have become Impaired since Oct
3rd, 1903, on the contrary it has en-
hanced in value.
The Rapid Transit has been complet-
ed since Oct. 3rd and is now running
to Kaimuki Tract, which has increased
the value of all our property in such
tract.
The Rapid Transit is also running on
Alakea street, and a large building
and mercantile house has recently been
finished which is located near our Ala
kea street property, thus enhancing the
value of same.
Under this head we beg to call your
attention to Section 10, providing for
the increase of the capital stock of a
company formed after the passage of
this Act, etc., and goes on to say
Provided that said increase in capital
stock shall be fully paid in legal tender
money of the United States.'
In Section Z, a company organized
prior to the taking effect of this Act
provides fifty thousand dollars to be
paid in in cash. Why the distinction?
AS to the payment of capital between
a company organized prior to the TAX
ing effect of the Act and one increas-
ing its capital after the passage of the
Act: 1t shows very plainly the intent
of the law. Payable in cash, and pay
able in legal tender money of the Unit
ed States is very distinct.
A cash payment may be made by
several methods, either by check, draft
bill of exchange or note. Legal tender
payments can only be made Qarge
amounts) in United States gold coins.
We contend that we have complied
absolutely with all requirements OF
Section Z of Act SO of the laws of 1908
both in reality and with the intents OF
the law.
Investments of Moneys: We fail tC
find any requirements under Act 6!
providing for regulation of investment
of moneys and if there are any we beg
that you point out the section thereof
and in what way you claim we have
not complied. with it.
Methods of Doing Business: We also
ask that you point out specifically il
what way the methods of doing bust
ness of our company are not in accord
with the requirements of Act So.
Assets: We have to take exception
to your valuation of realty and sundry
assets of our company in comparison
with our valuation.
However we propose to call in the
balance of assessments of the capita
stock and also dispose of the undesir
able assets with the endeavor to max,
it meet with your approval and avoit
further trouble.
Insurance Business: We will refrair
from doing any and all kinds of in
surance business granted us by yol
under our Certificate of Authority Blu
we propose to continue to do all othel
! things (eyceDt iOSl1ranpal c-raDfa1 III