Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-02
REPORT ON INSURANCE
ANNUAL STATEMENT TO COM
MIssIoNERs By MR.. DRAKE.

1 Thomas E. Drake, superintendent of in
I surance In the District in his annual re-
port. submitted to the Commissioners yes
! terday states that the business of many Of
the life insurance companies throughout
\ the country had suffered on account OF SEN
sational insurance scandals. but that the
| effect is already passing away. and the
l time Is not far distant when the business
| of life insurance will be greatly benefited
by the results OF the investigation, and the
business will thereafter have greater
| prestige than ever. The trouble. II Is
| added, had little effect upon the Insurance
business In the District, as there was an
increase in each branch during the past
year.
In the District last year, 237 licenses
| were issued to insurance companies, as
! sessment associations, and fraternal bene-
| fetal associations. and 1885 licenses to
| principal agents, solicitors and brokers' an
increase of eleven in the number of licenses
| issued to companies. compared with the
previous year, and an increase of three i'll
| licenses issued to agents.
| Revenue From Department.
1t was with pride, Superintendent Drake
says, that he points to the revenue derived
| from his department The total license
| fees collected amounted to $16,370.94 and
| the taxes collected amounted to S59. 566. 50.
making total of $7o,937.52. The total ex-
| penses of conducting his Office amounted
| to only $9.66Gg9 In referring to the cost
of running his department, Superintendent
| Drake states that his working force was
| entirely inadequate, and the employees, in
| Guiding himself. underpaid.
| According to the report. considerable
| money Is involved in the insurance bust
| ness in Washington The total assets of
| all insurance corporations transacting bust
| ness in the District at the time OF the re-
| port amounted to $3.07S, Ia, 1896 iabili-
| ties. 81. 49,. $50. 1889: surplus. including
capital. $1S2 G22 161. There was paid for
premiums in the District. for insurance of
all kinds, during the year, 81, 814 $50 "A. The
! losses paid by all insurance companies
amounted to sI.621. 1851 The amount of
insurance written during the year was S1o1,-
OH, 1866. SO.
Many Incorrect Reports.
Owing to a large number of incorrect re-
ports made by the local insurance COM
panies in submitting their annual state
ments showing their true financial condi-
tons, is required by law. the insurance
department, according to the report, was
required to carefully audit the statements
and make corrections. Of the lit COM
panies only "a We're found to have report
ed correctly.
Superintendent Drake renewed his sug-
gestion of the previous year for the enact
ment of a law regulating the busine/ OF
assessment life associations doing business
in the District on the industrial plan"
Such companies, he stated, york an MUS
tice and hardship upon their certificate
holders, mostly poverty-stricken negroes
and ignorant white people. He also says
that the questionable methods practiced
by such companies have been revealed.
Speaking of the insurance scandals last
year. Mr.. Drake says that the extraordi-
nary test of solvency to which life insur-
ance companies were everywhere subjected
on account of the sensa tons stands alone
in the history of financial institutions. The
result furnished convincing proof. he adds,
Of the absolute safety of the foundation
upon which the old line. legal reserve sys-
tenn of life insurance is based.
Mr.. Drake concludes his report by dis
cussing at length the insurance conference
held in Chicago. H., last year, and the
national convention of insurance commits
sioners in this city last month.