Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-05-28
HON. A. W. PAINE.
Names First Insurance Com
missioner Drafted First Law.
Also One Of Founder Of National In
surance Convention.
Was Born in kennebec County-is
Oldest Practicing Lawyer in U. S.

But few people of today, excepting
those who We're concerned thcreih' real
ize the great fight which was made
| against the establishment Oh the otate
insurance department. They think, IL
they give the matter thought, When
reading the commissioners reports, that
IT came about at a matter OIL course.
Such was not the case. when the ldea
was first suggested 1t met with the
most bitter opposition and the passage
of the law was defeated at the first SeS-
sion of the Legislature at which 1t was
presented. 1t is also interesting to note
that the father of this first bill. which
eventually became Il law, while not
then resident of Aennebec county,
was native of it.
Until 1868. during the administration
of Gov. Chamberlain, there were no
real provisions of law in Maine for the
regulation of either banks or insurance.
there being no general statute of the
State on either subject. Very many
bank charters had been granted, but no
law for their control had been enacted.
Congress having enacted the law gov
ernlng and originating the national
bank system an end was put to the cX-
listing State banks of discount, although
savings banks were unaffected by the
new national law. Such WAS the con-
ditiOn which Gov. Chamberlain found
when he assumed the duties of thief
executive. He realized the Importance
Of legislating for the proper control of
these and of the insurance companies
doing business in Maine In his rec
flr1l MOI, Is,tia hn ,I,t, I,n
suggested that something be done in
this direction. AS result of this an
act, chapter go of the laws of 1868,
was passed.
This act was brief and failed to ans
wer the wants and to supply the many
existing defects in the then existing
statutes on the subjects. 1t provided
Tor the appointment of Il bank and in
Surance examiner. Hon. Albert w.
Palne. of Bangor, was appointed to the
office by the governor and in conncc-
ton with this it is interesting to know
that the first intmation which he had
of the existence of such an office was
when he received notice of his appoint
ment to it. After some days spent in
consideration Of the adviSability of ac-
cepting the appointment, Mr.. Paine de-
cided to take the office.
AT the time of his appointment, as he
is today, Mr.. Paine was actively en-
gagged in the practice of law in Bangor.
1t was but a short time after he had
assumed the duties OF his new Office
when Mr.. Paine found that the law Gre
ating the office was, while a long step
| in the right direction, full Of serious de-
he CT ,irJ, IVA,
saw was that the two matters of in
Surance and banks WAS in no way suffi-
ciently similar as to admit of their be-
ing governed by a single law. He sat
about remcdying these defects by legal
amendments. He saw that each must
be governed Jy Il separate departments
1t was with this conviction in his nina
| that he dcyjtcd all the leisure time
which he had from his duties for the
| year 1869 in drafting a new law viii Il
should correct these defects.
Upon the assemblaSc of the LegisIa-
| ture of 1869 he presented drafts of two
acts, one regulating banking in the
| State and establishing the bank depart
ment, the other establishing the insur-
ance department and providing for the
control of insurance matters in Maine.
At the same time he presented his first
annual report as bank and insurance
examiner ana in it set forth the many
objections and defects of the existing
| laws on the subjects. The two drafts
| of the acts referred to were promptly
referred to the proper committees The
committee on banks at once made Il
favorable report upon that for the
government of savings banks and it
was enacted (chaptcr 60 of the laws of
1860 remaining, with a few additions,
the law today governing these impor-
tant Institutions.
With the insurance statute matters
Were different. 1t met with universal
objection in the State. Agents Of COM
panios, companies and the citizens gen.
orally, not 4 one beirG in favor of It.
protested against it. For days it was
before the committee and the discus
sion wagcd hot. resulting, finally, in
the whole matter being referred to the
next Legislature.
Another year passed and when the
Legislature Of 1870 assembled it found
that opposition to the proposed enact
mcnt had increased rather than de-
creased. Not word was said in favor
seemed lost when, of a sudden, CX-Gov.
Williams rose. and. after making a few
suggestions for slight amendments,
made a strong speech in favor of the
law, closing with the statement that the
Legislature could not do the people of
Maine so great a good in any way as
by cnacting the law proposed, subject
only to the few slight changes ne had
suggested. Next morning the discus
sion of the bill was stopped by the
chairman of the committee who an
nounced that the committee had, the
previous evening, decided to report
favorably upon the bill, after the
amendments suggested had been made.
A committee. of which the author was
a member, was appointed and the
changes made. The bill was reported.
passed and on March 31st, of that yeai
approved.
This law. Chapter 156 of the Laws of
1870, remains practically the law Of
Maine on Insurance, today. Mr.. Paine