Weekly Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1908-1909, 1909-01-08


charging irregularities on the part Of
Commissioner Beedle during lis admins
tratioG.
MI Waite's Complaint
The complaint of Mr.. Waite follows:
To the Governor: Dear Sir: While acting
as deputy insurance commissioner certain
facts have come to my notice of a nature To
Justify the belief that it is my duty to
communicate them to the chief executive
Of the state Believing that the matters
herein contained are sufficiently serious TO
warrant Investigation behalf Of the PEG
pie of the state, and believing that il rests
with the governor to initiate such investl-
cation ana action as may be necessary 20
secure Il correction Of the abuses, re
specially submit the following:
Il. Some time during the month Of Jan
uary, 1907, the Interstate Live Stock com
pany Of Washington sought Information
concerning the steps to be taken to obtain
authority to do business in this state. Ihe
company was promptly notified OF the re-
quirements. In due time ii made applca-
ton for admission, and filed the necessary
preliminary papers, together with draft
Tor SEQ to cover cost of examination.
Thcreupon the commissioner Of insurance
gave me written notice that the Interstate
Live Stock company had been examined by
him, and directed me to issue the neces-
sary license. To my knowledge, the com
missioner mad not at That time mace any
examination; nor had the company depoS-
tied with the state treasurer the security
required by law. The company had no
capital or surplus Of any kind. In due
time the company moved it's head office to
Milwaukee, and was permitted to operate
in this state. Some time i'll September,
1907, the commissioner called at the office
of the said company In Milwaukee and
upon his return made out report of his
examination. (See appended report) This
partment. l called the commission
ers attention to the report made
out by him. and showed him
that it was incomplete The disbursements
of the company showed an item of about
$500 for department fees, but the depart
ment of the commissioner Of insurance had
received Only the $50, for tilng charter and
statement. The legal filing fee required
from state of Washington is $45. There
were also charges OF p elch ior rev
agents to whom licenses had been issued
the actual amount received from the COM
pany being not to exceed $50. ! also brought
1t to the attention of the commissioner that
tho amount credited to the company for of
fee furniture entirely out of reason
with the borrowed money of the company.
1t was then insOlvent. Moreover the com
pany had not deposited with the state treas
urer securities in the amount of $1,000 as
required by law. The commissioner re
piled that the secretary's wife would try to
get Il loan for the required amount. The
Interstate Live Stock company continued
to de business in Wisconsin during the next
thirty days and then went into the hands
of Il receiver The printed report Of the
commissioner of insurance for the year 1908
contains no record whatever of this tranSac-
tiOn. The above case is cited as an uluStTa-
ton of the practice which the commissioner
of insurance has followed during the past
two years Of licensing companies to transact
business before an examination had been
made.
Makes More Allegations.
THE law provides that companies
seeking admission to do business ia this
state snail bear the expense OF the eXamln-
alton required by law. | believe that pre-
% Ia
making such examinations, received ana
retained such fees. 1t is my beIief that
the past two years. 1t is also my belieI
that a large proportion of the fees earned
by employees of the office i'll making actual
examination OF insurance companies have
been made over by them to the private ac-
count Of the commissioner OF insurance.
(See ACtcnams letters dated August ~,
1907, and May n, and july II, I9DS)
IS. Section 1910 OF the insurance laws
provides that the commissioner shall make
personal examination OF fire insurance
companies seeking authority to operate in
this state This provision of law mas been
ignored 10y the commissioner of Insurance
\ large part OF these examinations have
been made by the department examiner,
Edward \. hetchapI.
- Complaints have been received from
various companies whose tax schedules
have been examined by Mr.. kctcham, to
the effect that his charges for examining
such schedules were eNOcbitaut, and Ii is
my Judgment that there is Il basis for tnfS
complaint l believe it is not the intent
of the law to allow anything more than
the actual expense of collecting a small
balance that may be found to be due TO
the department for back taxes | 90 not
helipye that in such cases the usual charge
for examination of companies entering the
state for the first time can, under the law
he collected. The examiner, acting under
direction of the commissioner of insurance
is now charging mileage to each such com
many examined thus being reimbursed sew
eraI times over for the actual expense of a
trip IN which several companies are in
Guided
This examiner has mutilated bound vol
umes of the reports of insurance companies
with the consent of the commissioner ex-
tracing therefrOm the original tax sched-
ules of over seventy companies in order to
have Il ready and easy reference for com
noriSon Permission should never have been
given to take these original reports from
The office. Ii is doubtful whether this IN
Jury to the records can be made good.
Moreover. in the absence of these records
il is impossible to verify the reports of the
examiner and this office is compelled in
the absence of said records, to accept his
unsupported word.
''All of the official correspondence of the
examiner is marked private and does NOT
find its place IN the flles of this department
except that certain formal reports are
turned over later by the commissioner. The
commissioner has been absent from the of
flee several weeks at time, and the deputy,
In the absence of the commissioner. is left
entirely in the dark with reference to any Of
fetal matters in connection with this eX-
aminer. (See appended correspondence with
National Casualty company, Aachen and