Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-10-17
FILES BIENNIAL REPORT
State Auditor Carroll Issues
Statistics of State Finances,
Banking, Insurance, Etc.
NEED REINSURANCE PROVISIONS
Nc. Carroll Makes Important Recon-
mendations in Regard to Some Need
ed Changes in the Laws Relating to
Insurance - Would Change Methods
of Publishing Bank reports.

Special to Times Republican.
/ Des Moines, Oct 17--B. +. Carroll.
auditor of state, today filed with Gov
ernor Cummns his biennial report the
first report since his lncu1ubency. In
which he gives an account of the finan-
cial transactions of the state for the
two years ended June 30 last and of
] the operations of the banking, insur-
ance and building and loan departments
! under his care. The statistical portion
of his biennial report is already in the
hands of the state printer and the vol
ume VIII soon be printed and ready for
i distribution Mr.. CARROTS summary OF
j the information with his recommends
| tons for the improvement Of the de-
| partment form a story of interest.
1 The statistical report on the state
1 finances shows that, according to the
| auditors books the treasury balance
after deducting all outstanding war
rants, increased In the period from
1 81 ia 900 To $1.531 ,S26, Or $41IS26. The
actual increase in receipts for the per-
ioI, less the war funds. was S566,5Il, L.
| 80
/ There was an increase of only s4,-
1882 in the state school fund, which
/ IS now $4,o54, ,444s52, all loaned out by
the counties at a profit.
Mr.. Carroll does not recommend d.
rectiy that an insurance department be
created but presents briefly the argu-
ments for and against the proposed
change, as they have been considered
| at almost every session of the legisla-
ture. and adds that 1t Is more import
ant that better preparation BE made
| for taking care of the advancing and
rapidly increasing business in the pres
ent department than /; Is TO settle the
! question as to whether the department,
| should be supervised by d commission
/, er or by the auditor OF state.
| while the work of he department
has been turned out with reasonable
| promptness," adds Auditor Carroll.
st has been done by ya.y close appli-
| cation and many times in such haste
AS to be unsatisfactory to those who
perform the labor We know OF no
state that has so little help in its in
surance department compared with the
amount of business done. as our own
state This Is not said complainingly,
as Iowa is not stingy in providing for
taking care of any Of the states inter-
ests, but the very rapid development
of the business of the insurance de-
partment has exceeded the preparation
for taking care of the same. That the
coming session of the legislature will
provide ample means for taking care
of the insurance interests of the state
have no doubt"
In regard to some changes In the
laws relating to insurance. Mr. Car
roll makes emphatic declarations. He
states that none of the chapters on life
insurance except that on stipulated
premium companies contains any re-
insurance provisions, and adds:
The lack of a statutory provision
relating to reinsurance was especially
noticeable during the past few months
when two OF our largest life insurance
companies reinsured their business.
There has also been an occasional rein
suranse of fraternal beneficiary as
sociations, and it Is often to the best
interests of these concerns that such
reinsurance takes place, but there be-
Ing no law governing the same, in some
instances companies or associations
have proceeded to effect an agreement
between themselves without so much as
consulting the department or advis-
ing it as to what is being done, and the
plans agreed upon are not always for
the best interests of the insured. 1t is
my opinion that plan of reinsurance
adapted to the requirements of the
various kinds of companies or assa-
Citations, should be clearly set forth in
the insurance laws.
Mr. Carroll recommends that the law
should provide that all insurance COM
panies and associations should be eX-
amined at least bienally and the exam
iner should be paid a salary in lieu OF
fees. He would also have the valuation
os all policies by the department, es-
pecially since ne now holds nearly two
and a half million dollars of securities
belonging to companies not located in
the state. In regard to Objectionable
forms of policies he says:
In my opinion there should be a
law defining the character of contracts
|
companies to the end that the state
may be better protected against un-
desirable insurance. In the past there
has been little restriction upon the
companies, ii being left largely to the
companies themselves &c determine the
kind of contracts they shall place upon
the market This has led TO the plac-
ing of insurance of very questionable
character, and to much criticism and
dissatisfaction while the department
is measurably well satisfied with its
efforts to exclude from the state IN
surance contracts of the kind above
mentioned, l am convinced that the
legislature should make provision as
10 what shall be offered to the people
Of the state as a policy of life insur-
ance, and what shall not SO far as
Iowa comnanies are concerned but lit
tie objection can be made to the form
of policies now written"
In regard to taxation he says: Non
resident life and accident associations
pay no taxes into our state treasury.