The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-06-25
.SCHIVFLY HAS
BETRAYED HIS
STATE TRUST
GOVERNOR HAY REMOVED FROM HIS POI
T1oN EITHER BY IMPEACHMENT LOWER HOUSE OR THE
ADJUSTMENT OFFICE.
Wants Investigation State Office and Institution Has
Been Givena Thorough Probe Says People n
Will Willingly Pay.

most invariably represented to insur-
ance companies seeking admission to
this state that the entrance fees were
1926 for each company, payable in adj
vance; few companies were admit.
ted on the payment of advance fees of
$135 each; that in at least one case Mr..
Schively demanded and received an
entrance fee of 1895; that an inspection
| of the books of the Insurance depart
ment discloses that In no case did the
state of Washington receive from Mr..
| Schively. or the insurance department,
more than the statutory fee of $35 from
any company admitted to do business
| In this state.
! That Mr. Schively, as deputy insur-
ance commissioner, had no right or au-
! thorfty to demand ana receive 5000 from
any company for ''verification and first
report"
| 1t is impossible for this committee to
accurately determine the total amount
! of fees so collected wrongfully and
wholly without warrant of law by j. H.
/ Schively, as deputy insul ance commits
sioner, during the eight years of his
| term as such deputy, but from the evil
dence received from. about one-fourth
| Of the insurance companies transacting
/ business in this state the COMMITTEES
finds that such fees so collected will
! aggregate several thousand dollars and
/ that Sam H. Nichols and J. II. Schively
| have been the beneffciaries of such fees.
| That J. H Schively testified that the
! extra. fee of 5000 not provided by stat
ute was collected to insure the expenses
| which would be incurred ia prospective
and future examinations and to Keep
| out what he designated as "Wildca4 in
surarce companies; but the evidence
before the committee shows that ap-
proximately five thousand dollars has
| been collected in the past five years
from insurance companies which have
never been examined, and Mr.. Schively
testified that no part of said sum SO
amount is carried in what Mr.. Schively
| designated when before the committee
asc a sliding account"
| That in the past eight years Sam H.
Nichols, as ex-officio insurance COM
missioner, and ]. H. Schively, as dep
uty insurance commissioner, have COL
lected several thousand dollars to cover
| expenses of prospective examinations,
which examinations have never been
made that such amount was divided
equally between them; that no part of
/ said sum now remains, nor has it ever
been kept as trust fund for the COM
, panies advancing it, and that such col
lections were wrongfully and illegally
made
That the testimony before the COM
mittee, undisputed by Mr. Schively
!, shows, and the committee finds, that
Sam H. Nichols and j. HI. Schively in
, variably charged fat rate for eXami-
ming an insurance company. which fiat
rate ranged from $40 to 5000 for each
company; that this fiat rate was charg-
ed in direct contravention of the law
That on August II, 1905. j. H. Schive-
ly, as deputy insurance commissioner
received from the Pacific Live Stock
; association, af Spokane, two checks
one for 500 and one for 5000, supposed
, the records of said association show
} that J. III. Schively was elected presi-
dent of the Pacific Live Stock associa-
ton on July 10, 1906, and qualified as
such on August 4, 1906; that he con-
tinued to act as president of the as
J ISOLATION until October 8, 1906; that
: during his term of office as such presi-
dent he received from the association
J in salary and commissions over $4,000 !;
that during his connection with the
association as president Mr. Schively
was deputy insurance commissioner of
the state, and received his regular sal
airy as such deputy.
That in September. 1907, the Pacific
Live Stock association was found to be