New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-04
MIR. KELSEY REPORTS.
THE Preliminary TEXT.
Insurance Superintendent Suggests
Changes in LGzcS.

Changes in LGWS.
Albany Feb 8LThe forty-eighth annual report
q the Superintendent Of Insurance 10 the Legis-
Laturs. Eisned BY Otto Kelsey. made public to-
night II for the year ended December 81. 1903.
This IS simply the preliminary and Will be
followed by four volumes The report IS in part az
follows:
For The fiscal year ended September 90, 1895. the
totals OF receipts and disbursements by the depart
mlent we're as follows:
Rscspts 1922 $40 90
Disbursements 1888 So
Surplus PAID treasury s178es8 "a
For the fiscal year there appears an excess OF
being the largest surplus for single year in the
history Of the department. The aggregate OF
Quirements Of the department, from COLLECTIONS
than one-half Of which sum has been derived from
me business OF the last ten years
conditlonal penalties is the broad question Of a
reform in the method Of supporting the Insurance
the revenues OF the state Instead OF the present
ment shan exceed the amount OF fees collected
pursuant 20 law the excess shall he annually as
eessed Dy the superintendent pro rata upon all the
insurance corporations Of the state doing business
therein and the superintendent is required 10 coll
lsct such assessments and pay them into the state
Sr X ~ me ne s!GceSsise ann9ai suTpiuSes
oIon nus class OF corporations, wrong principle
na1ion OF departments OF government supported
by forms of special taxation upon corporate in
ment will sustain the recommendation of the Gov
ped to a5o6esf 2 oS IN t2e 1w as sP
criticism is equally forcible with reference the
Insurance Department.
LIFE INSURANCE COMPANIES.
Ihs operation q the Insurance law under snend-
suTance has not been applied in many important
provisions 20 an extent enabling the department
amendments od not take effect until January I.
1877, and many then in force Will not be Of sp-
parent EfEQlnc2nCe until a lapse of tina
than since their enactment Whatever uncertain
he law, IFS DONNA ting principle Of enforced pub
saTsncs oorporsfo1s % n1o7ot @ sr fe SAFE
methods and good conduct by their responsible
officers
FIRE INSURANCE.
II viii probably be the latter part Of March he
s,A ne stbeetS o. me aIs 9be maF i CON-
be audited abstraCted, tabulated. printed. and
comparative figures as between 1896 and 1906 bust
hess be prepared and presented the Legislature.
This preliminary report win refer. in a general
manner only. TO the San Francisco oonfagration.
Considering she extent Of this disaster. the New
York FIRE Companies suffering loss of over
- 1880 ne con P1Illes IL o'leI sIaIes OF ZONE
countries some S5Soca61o-these ngures compiled
from the department circular Of July Is. and ap-
soSrce - ta+ re lev com
penies have been compelled TO discontinue bust
ness ana that the insured have received in the
gstme1ts One Company Of this state has been
placed in the hands Of 2 receiver. Three companies
have retired from business, one OF which mas been
supplanted by newly organized company. The
. ~ NJ
unsatisfactory.
REVIEW OF CONDITIONS AND CERTAIN
PROVISIONS OF PRESENT LAW.
Without urging legislative action upon specific
amendments TO thu Insurance law declaring for
who have given attention 10 developments in insur-
hIce sHalrs OF tle last TWO years may be inter-
give from its limited experience under new condi-
situation from the viewpoint OF this department.
are therefore. presented.
arTE Of orig -aTT Drr y-iT1 he
1Ftr s c9mmittee Chapter l3 essIang out out
insurance company and providing Tor the election
GI an Pre new 6GaFa 81 dlTecoTs while Tadics5
course Of elections of directors. except in the Mu-
these great corporations has been pending for
ps.gn or anney eg nc, e % UL se II Is
believed a decision will be made and certified to by
the inspectors Of election after such careful ex-
animation and rigid calculation of the votes law
fully cast IN the election as viii preclude question
ing the result disputed count and legal contro-
ton fnyoEed. and injurious also the entire bust
a discussion Of the operation Of the Insurance
law ior the purpose of calling attention to various
provisions, where, in the administration of affairs,
amendments carefully considered will be found
MINIMUM CAPITAL sTOCK-This section. reg
nlating ne minimum capital stock OF the various
corPorated therein new feature. The capital
stock is liability. Permitting the company 20 or
pairment thereof the moment any volume Of bust
panies now organizing dispose Of the capital at
premium. thus bringing in surplus at the time Of
Incorporation It would seem proper for the In
Surance Code itself TO require surplus the time
OF organization by disposing OF the capital at
premium.
DEPOSIT or Observation-Disclosures the pro-
visions OF this section company may deposit with
The department bonds and mortgages on improved
unencuTnbered real property in this worth so
Deposit securities OF this character necessitate
examination by department counsel of suffciency of
title - the moTtSaged premises. and by depart
nlent appraisers OF the values OF the property.
Further. fire Insurance policies must be carried
covering the buildings the property, which must
De properly assigned TO the superintendent trust
ate. The responsibility entailed upon the depart
gent IN receiving mortgages as deposit securities
net desirable This class of securities should be
eliminated for departmental deposits.
INVESTMENT OF CAPITAL AND SURPLUS
This section requires that the minimum capital %
domestic Insurance corporation shall be held in
deposit securities This feature Of the should
be maintained and II section 13 is amended by
eliminating the right 10 deposit mortgages with the
department. the company should have the privi-
aogs or holding mortgage loans part of its
minimum capitalization; The first sentence Of this
section should be amended by eliminating therefrom
the word domestic"
II Is rightfully claimed that foreign corporation
Of another state should have minimum capital in
TeStments of the saHne general character required
or ike corporation of this state. The corporations
81 other states should be permitted however, when
investing in deposit securities TO purchase the
Same class Of investments in the home state which
may be held by corporation OF this state The
state corporations applying for authorization 10