Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-01-12

that the wiser course Is to leave the
work where It is. giving to the auditor
authority to employ a force sufficient
to transact the business in an efficient
way.
| concur In the recommenda ions of
the auditor that he should have au-
thority TO employ at yearly salary an
examiner and actuary, with such cler-
ical assistance as may be necessary.
| 1t Is impossible to engage competent
man for the examinat ton of insurance
companies for the COMPENSATION now
authorized; and there is no practicable
provision OF law for the employment of
an actuary. The people are vitally In
terested in knowing whether the in
| surance companies with which they
deal are solvent or insoivcrt. and when
the times comes for an examination. 1t
Is of no value unless made by an up
right, competent. and skillful examiner
and actuary.
| Fraudulent lnsurancs.
l concur also In the recommendation
that an effort be made to define what
contract for life insurance is. In
these days life insurance takes on SO
many phases. and the ingenuity of
managers is SO great, that every kind
OF indemnity and investment fair and
unfair, honest and fraudulent. is Of
| fered 10 the people as life insurance.
believe that statutory definition
| can be devised broad enough to en-
brace every legitimate contract and
that would facilitate the work of the
| auditor in excluding contracts which
L ntf f,.n, dbl NV. ,,yhig hall n
| to some other field of enterprise.
concur most heartily in the recon-
mendations relating to Reinsurance or
consolidation. 1t is highly necessary
for the protection OF the policy holders
that the state shall determine the con-
ditions under which one company shall
be absorbed by another.
Other recommendation made by the
auditor / have not time to comment
upon, but they merit careful considera-
ton.
Upon my own behalf I earnestly
urge upon you an amendment 10 the
law which shall provide that all fees
patd by insurance companies for ex-
animation, or for any other service rem :
dered under the direction OF the state
shall be paid into the state treasury.
and that whatever compensation al
lowed to those who perform the work.
shall be paid by the state. AS the
Ilaw now is the insurance companies
pay the examiners whatever sums may
be charged for services and expense.
and the examiners make no account OF
lit whatsoever. This practice Affords
opportunities for wrong doing that are
, ,intolerable in state which cherishes
reputation for integrity and fair deal
ling. Whatever the state does thru
any of Its officers or agents for which
a fee Is prescribed. should be paid Tor
by the person or corporation from
which the fee is due, directly to the
state. and whatever the officer or agent
receives for his work, should be paid
by the state and the books of the state
ought to show the exact transaction.
| Mulcting Insurance Companies.
/ am led to comment on this subject
with unusual emphasis, largely on ac-
count OF some matters which occurred
during the four years in which FRANK
Il, Merriam was auditor of state. To-
ward the close of his last term 1t was
charged by various foreign insurance
companies that he, together with his
insurance examiner, Mr.. Max Beehler.
had made, or pretended to make. a
large number OF examinations which
were without the authority of the eX-
ecutive council, and for which fees ana
disbursements We're exacted grossly IN
excess of fair compensation and re-
imbursemen, for the eSamina tiors
made and expenses incurred. The recor9
of the executive council did not dis
close any authority for such examina
tions. When Mr.. Merram's atten-
tion was called TO the matter he said
that the members of the executive
council had given him ora! aushorit.i
land his recollection In this respect was
verified by letters from former mem
bers. AS governor OF the state then
made an examination of his office for
the purpose of ascertaining what COM
panies had been examined and what
fees and disbursements had been
charged I at once discovered that
the books of the auditors office did no.
show,that examinations had been made,
j