The news & observer., 1905-10-12
Mr.. POU'S FEE
The Service Rendered the
Mutual Life of New
York.
There Could Have Been No Graft in
North Carolina When Amount Ex-
pended Was Only Two Hundred
and FIFTY Dollars.

ploy whenever occasion arises. L
never had occasion to see him but
once, and it was d very small mat
ter. / think the fee he charged
was $3.50. However, if / had oc-
casion to go there | would go to
see him. His name is Pou.'
A reporter of The News and OBJ
server called to see Mr. James Fl. Pou,
showed the above statement, and
asked him if he represented the Mu-
tual Life of New York, and if so what
service he had rendered them in "legis-
lation and taxation" ,AMr. Pou re-
piled:
Mr.. POu's Statement.
II remember the matter distinctly;
and so far as / know it was the only
time The Mutual Life was ever inter-
ested in North Carolina legislation.
"The Legislature of 1899 passed
what was known as The Willard Law,
creating our present insurance system,
and elected Hon. j. r. Young Com
missioner. (Chapted 54, Public Laws
of 1899. This act provided how in
surance companies shosld be licensed
to do business, and how such licenses
might be revoked.
1.-THE same Legislature passed the
Craig Act. Chapter 62, which required
all foreign telegraph, railroad, tele-
phone, express, insurance, and steam
boat companies to "domeSticate" be-
fore doing business in this State. The
purpose of this act was. to prevent
such companies removing their cases
to the Federal Court This act was
passed before the insurance law, and
many good lawyers We're of the opin-
ion that the insurance law superseded
and repealed the Craig Act so far as
it applied to insurance companies. TO
my mind, this was very doubtful.
after the Legislature. adjourned
there was much concern in insurance
circles about the Craig law. Should
they ''domesticate," resist the law, or
retire from the State?r Some of the
best companies retired from the State,
did no business, and. paid no taxes
for two years. The Mutual Life sent
a representative here, with a letter of
introduction to me from Mr.. f. H.
Hyatt, Agent for North and South
Carolina. from whom l had shortly
before taken out a large policy on
my life This representative asked
me to examine into the law and ad-
wise the company whether TO domesti-
cate and do business in the State, or
to retire. I consulted both' the Insur-
ance Commissioner and Attorney
General Walser, and advised the COM
pany to remain i'm the State and do
mesticate. 1t did so, and a number
of the other companies likewise re-
NAMED | think the large majority
of the insurance companies remained,
though a considerable number With-
drew.
"The Legislature of, 1901, with
scarcely any opposition, amended the
insurance law, giving the Commission
er authority to revokel the license Of
any foreign insurance company which
removed a case to the Federal Court,
and it amended The Craig Act so that
it no longer applied to insurance COM
panies (Chapter 176. Laws 190D.
Upon the passage of this act, all, or
nearly all, of the companies which
withdrew in 1899, on account of the
Craig Act, returned to the State, OBJ
tanned license and began business
They were no longer concerned with
the Craig Act But the companies
which had complied with the Craig
Act, and also with the Willard Act,
in 1899, felt that possibly they were
at a disadvantage by reason thereof
They wished, as far as possible, to be
relieved of any possible liability or
danger which they may have incurred
by reason of the act of domestication.
They felt that as matters then stood,
the companies which had refused to
comply with the Craig Act and which
had paid no taxes for two years actu-
ally might be in better position than
the companies which had remained,
complying with the law and paying
their taxes during those two years.
Mr. Warren f. Thummel, repre-
senting the Mutual Life, came to see
me, and reminded me that partly
upon my advice the Mutual Life had
and remained in North
Carolina. He wished his company to
occupy no worse a position than any
other, company under the law of this
State We went over the laws, and
were very uncertain whether the COM
panies had been at all affected by do
mestication under the Craig Act We
were not certain, however, and we
were advertant to the fact that many
other insurance companies, rather
than incur such liabilities as they fear
ed under that act had Withdrawn
from the State two years. We thought
the best thing that could be done
would be to ask the State to abrogate
the act of domeStication upon a COM
pliance with the Willard Law of 1899,
as amended by the act of 1901. l
consulted the Insurance Commission
er and several Of the members of the
Insurance Committees in the Leglsla-
ture, and aScertained that there would
be no objection to the passage OF such
an act. | prepared it. submitted it to
the Commissioner of insurance, ne
approved it, and it was introduced IN
the Senate by request. flts tltle was
full and self-explanatory,. as follows:
'''An Act to Authorize the Secretary
of State to return to insurance
Companies all copies OF their char
ters and bylaws deposited in obe-
dienca to tho Craig Act. and to re-
lieve said companies from all liza
bility hereunder
"The bill contained the following
proviso: No insurance company shall
receive the benefit of this act, nor
have it's charter and bylaws returned,
unless said company shall nave IN all
respects complied with Chapter 54,
Public Laws of 1899 the general m
surance law1 and all acts amendatory
thereof (Chap. 176, Laws of 1901,