Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-04-03
our LETTER BOX.


of the LIST inst, by John l.. Pierce Of LIN
coln state insurance deputy, entitled, up
heaval Brings Reform" says:
The actual results of the tontine or semi
vealed when compared with the estimates
made at the time such contracts OF in
surance were sold, ere SUFFICIENT to make
any one pause for a long time before pur-
chasing investment insurance.
Permit me to ask what the insurance |
department of Nebraska is doing to prevent |
the citizens of this state being fooled and
deluded by estimates made by Nebraska |
companies that Mr.. Pierce must know
cannot be realized? No actuary of any 1
reputable company would dare stake his |
reputation on an estimate such as these
companies are permitted to put out broad
cast, for he knows, and so should Mr.. |
Pierce, that fulillment is utterly imposs- |
BILE. When this is put before the Nebraska |
department they hide behind 1.-THE law |
and say they see no way to prevent It.
while Missouri, with some backbone, but
with no more law than Nebraska, simply
tells the companies they will not be per-
mitted to fool the people, and the COM
panies cease their disreputable practices.
1t may be of interest to quote here letter
to the insurance department written only a
few days ago:
OMAHA, March q, 1SOe.-John L. Pierce
Deputy Insurance Commissioner, Lincoln,
Neb.-Dear Sir. For the perusal OF Audi
tor Searle. enclose slip from the United
States Review of the 22d inst; this Is sent
you to emphasize what the association en-
deavored to impress upon Mr.. Searle, when
you and he were kind enough to attend
our January association meeting that is
to say that the Insurance commissioner or
auditor, does not always need law, liter
ally speGifying his every action. In other
tain rules for the good Of the business.
feel certain that the policy holders of
the state and the general public would
back UP Mr. Searle If he absolutely shut
out any company writing special con-
tracts; any company making estimates,
ing or twisting.
Won't you kindly put my. name down
for three copies OF your pamphlet, covering
| the business done by life and assessment
companies during the year 1905.
Thanking you In advance for this and
uous duties of an insurance commissioner
during these unsettled times, | remain.
yours truly, MANAGER.
I will leave this question of "Upheaval
Brings Reform by asking the insurance
department what are you going to do
about it?'
In another portion of the article by MIR.
Pierce, he mentions the fearless" commits
sioners of the New England states. Let
me illustrate that: A certain company
was about to purchase the majority stock
/ of trust company with the funds of the
! policy holders. The Massachusetts COM
Observation-Disclosures to this company.
| substantially, Gentlemen, II you purchase
this trust company you can't do business
/ in this state" Again, he said to this
same company, You cannot keep such a
/ large deposit with the - Trust company"
and he requested a written undertaking
from them. in which they agreed to de-
post only a moderate amount. viii Mr.
Pierce show us any law for this. Mr..
! Cutting did not hide behind a law which
might literally cover these particular
cases; he comes out boldly by virtue Of
what he deemed his duty to policyholders
and stoutly rules, thus far shalt thou go,
and no further" Mr. Editor. fearless
is good word; so is sand" so is back
bone" and if the responsible head of the
| Nebraska department had those qualities
a rotten concern like the Mutual Reserve
would not have been permitted to do bust
ness in Nebraska a full year or more after
Massachusetts threw them over the tran
som; nor would that other sweet smelling
association-the Bankers Union-have sur
vived so long as it did, to swindle the
people.
How Mr.. Pierce can defend state super
vision as against national, with Iowa's OK
perience with Doodle commissioners, Penn
sylvania's grating outfit, and the condi-
ton of things in New York is
beyond my comprehension. When an
insurance commissioner admits - as
Hendricks of New York did when ques-
toned by Inquisitor Hughes-that he knew
nothing of life insurance when he went
into the department, and expected to know
at least as little when he went out, IL
only shows that there must be a change
to national supervision. When that time
comes we expect 10 push hard to make
Mr. Pierce the head of the national depart
ment because we believe him to be honest
and mo graft" on his banner; but how the
other different state commissioners and
their deputies will kick and howl against
national supervision! They will be out OF
a job and the policyholders of the different
companies will be saved hundreds OF thou
sands of dollars each and every year, by
not having a raid-under pretense of al
examination-made upon them by a lot OF
absolutely incompetent commissioners, oil
their deputies and clerks. Why incom.
petent? because appointed by the republi
cans only year ago; because appointed
by the democrats only two years ago; be
cause appointed by the pops" three years
ago. May be the fourth year has com,
along, and then, why, a new administra
ton, and a new set of men. who-with al
their good intentions could not properl,
examine a company OF 100000 OF assets
and do you think them capable of exam
ining-with any degree of efficiency-th,
, $4OOO.OOO or s5,OOOOOO company? Now, /
these men-well meaning and honest a.
most of them are-will quit gallivantinJ
2 across the continent to Examine" som
company they have no business with; sta,
\ at home and mind their business, givinl
attention TO the graft that's right unde
their nose, maybe. the senator whom Nj
! Pierce unnecessarily takes a fling at vii
attend to his end OF the wire by honestl
and faithfully looking after every interes
OF the great company, whose founder
E thirty years ago-he was. and which Is tn
+ very pride of his life, the only oompan
by the way, which voluntarily went befor
: the Armstrong committee.
incidentally, Mr. Editor he will also pu
the necessary quietus upon any insuranc
commissioner who comes to him wit
a bill two three or four times too niue
for examining his company. Respectfully
H. r. GOULD.