Omaha daily bee., 1906-01-09
PIERCE HAS HIS TROUBLES
Insurance Corporations Not the Only
Sources Of His Worries.
ASK QUEER QUESTIONS
one wants to Know ~ state GuarRn-
tees Payment of Policies In case
Company Issuing Them
Becomes bankrupt.
cFrom a STAFF Correspondent


. LINCOLN. Jan. ESPECIAL THE insur-
ance department OF Nebraska's government
has other cares than that required in Ii
censing Insurance companies and attending
20 the routine business OF the Office. one
source Of the woes encountered by In
surance Commissioner Pierce and his as
sistants is the long string of letters ad-
dressed by policyholders to the department.
The writer's almost invariably ask for In
formation. and the time demanded in re-
spending takes many hours monthly of the
commissioners time.
A query received today solicited an opin-
ion as to whether the state of Nebraska
in case a life insurance company should
fail, the state guaranteed all of the pay
ments which the contract implied MI.
Pierce responded, naturally, that the state
government nor the insurance department
assumed no such obligation. Mr.. Pierce
pointed to the inquiry al probable proof
OF MISREPRESENTATION by some life insurance
agent in writing a policy.
The agent probably wrote the contract
in question by representing that his COM
pany had a large sum of securities on
deposit with the insurance department OF
the state and that the state, as a conse-
ouence. was in a position to guarantee the
sioner Pierce. "Of course such is untrue
The state does hold a large amount of Sc
curities belonging to life insurance COM
panles. but in case of a failure a receiver
shin Is declared and the receiver, II the
company is in no financial shape to con-
tinue business, calls in the securities and
disposes of the assets to the best ad-
vantage Of the creditors and the various
claims This condition does not mean that
the state guarantees insurance contracts
held by its citizens. Perhaps the policy
holder thought 1t did in this instance ana
Il is quite likely he was the victim OF
imposition at the hands of the agent. Such
an agent is dlscredit to the PROFESSION
He hurts his company, for the deceived
policyholder almost invariably gives up his
contract after he discovers the deception
and he likewise harms the agent who Is
in the field for legitimate purposes and is
trying to write contracts on square deal
basis. 1t is my judgment that most Of
the lapses in insurance are the result or
deception by agents and the subsequent
discovery by poilcyhoiders that they did not
get the contract they expected"
Appeals to supreme Court.
Notice OF appeal in the case of F. NJ.
Hallowell county Judge of Buffalo county.
and Thomas b. Garrison, ST.. against Ar
thur v. oml. county clerk of the same
county, was filed with the clerk of the
supreme court today. The suit involves an
election contest in Buffalo county. As
Stunning that the law passed by the last
legislature lengthening the terms of regis
ters OF deeds would hold good the repub-
Ncan county convention did not nominate
O candidate for that Office. The demo-
81 nj IA
field Two weeks before the election last
November the supreme court ruled that
The law was unconstitutional and holding
that registers of deeds should be elected
along with other county officers. The Buff
falo county republicans promptly called
an emergency convention and placed a man
named Wheelock In nomination. The demo-
Gratis protested against the appearance of
wheelock's name on the ballot, but County
Clerk Ofil decided to include the name
The democratic committee followed with an
injunction suit. County Judge HallowelI is
suing order forbidding Ofiil from print
ing Wheelock's name on the ballot. Suisse
quently the republicans took the matter
before the district court, a higher tribunal
and secured a ruling permitting wheelock
TO get on the ballot. as result of which
he was elected, last week taking the office
County Judge Hallowell and Thomas b.
Garrison, the latter q democratic commit
teeman. are not content with the result Of
the litigation in Buffalo county and have
now appealed to the supreme court for a
ruling as to the law and the merits.
Omaha Man Wins.
Edgar c. Smith. life insurance agent Of
Omaha, was this afternoon decreed by
Judge Cornish to be the owner of the
Brownell block valuable $500 business
structure downtown. His right to owner
ship was contested by Albert Harrah, g
breeder OF fancy cattle in western Iowa.
Harrah held a quit claim deed obtained
through q former owner. II o. Jackson
and he insisted that the deed which Smith