Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1909-01-08

MADISON. Wis. Jan. 81 Special.l
Late this forenoon the appointment
of Herman L. Ekern as deputy lnsur-
ance commissioner was filed with the
secretary of state by Insurance Com
missioner Beedle. About the same time
M. w. Waite, whom Ekern succeeds,
placed with the governor and with the
civil service commissioners a complaint
charging irregularities on the part OF
Commissioner Beedle during his admins
tratiOn.
Mr.. 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 nature TO
justify the belief that it is my duty 10
communicate them to the chief executive
of the state. Believing that the matters
herein contained are sufficiently serious TO
warrant investigation on behalf Of the peo-
pie of the state, and believing that it rests
with the governor to initiate such investl-
CATION ana action as may be necessary 10
secure a correction Of the abuses, l 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. Inc
company was promptly notified of the re-
Quirements. In due time 1t made appnca-
ton for admission, and filed the necessary
preliminary papers, together with draft
Cor $3.50 to cover cost or examination.
Ihereupon the commissioner or 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 had not at that time made any
examinations; nor had the company depos-
tied with the state treasurer the security
NV loHIr no
capital or surplus Of any kind. In due
time the company moved it's head office to
Milwaukee, and was permitted n TO 3PeT her
1907 the commissioner called at the office
of the said company In Milwaukee ana
upon his return made out report OF m MS
examination. (See appended report) This
report is now on file in the insurance de-
Dartment. l called the commission
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 $25, for filing charter and
statement. The legal filing fee required
were also charges of 81 each for IeW
agents to whom licenses had been issued,
the actual amount received from the com,
pany being not to exceed $50. also brought
it to the attention of the commissioner that
the amount credited to the company for Of
flee furniture was entirely out or reason,
with the borrowed money of the company.
It was then insolvent. Moreover the com
pany had not deposited with the state treas
nrer securities in the amount of 5000 as
renuired by law The commissioner re-
piled that the secretary's wife would try TO
Interstate Live Stock company continued
10 de business in Wisconsin during the next
thirty days, and then went into the hands
,ot Il receiver. The printed report OF the
commissioner of insurance for the year 1903
COS aims no record whatever of this transac-
II Il. The above case is cited as an illustra-
lion 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
Makes More Allegations.
THE law provides that companies
seeking admission to do business i'll tins
state snail bear the expense OF the eXamln-
alton required by law law | beheYe mat pre-
making such examinations, received ana
retained such fees. 1t is my belief that
this practice has not been followed during
the past two years 1t is also my belief
that a large proportion OF the fees earned
by employees of the office in making actual
examination of insurance companies, have
been made over by them to the private ac-
count of the commissioner OF insurance
(See Ketcham's letters dated August II,
1907, and May p, and July "A, l9US)
-. Section 1915 of the insurance laws
provides that the commissioner shall make
q personal examination of ire insurance
companies seeking authority to operate in
this state This provision of law has been
ignored by the commissioner of insurance
large part of these examinations have
been made by the department examiner,
Edward A. Ketcham.
"a Complaints have been received from
various companies whose tax schedules
have been examined by Mr.. ketcham, to
the effect that his charges for examining
such schedules We're eXorbitant, and it IS
my Judgment that there is basis for this
complaint | believe it is not the intent
of the law to allow anything more than
the actual expense OF collecting a small
Illance that may be found to be due to
the department for back taxes. do not
h, tteye that in such cases the usual charge
for examination of companies entering the
81 tie for the first time can, under the law,
la collected. The examiner, acting under
erection of the commissioner of insurance
"a now charging mileage to each such COM
many examined, thus being reimbursed sew
raral times over for the actual expense of a
trip in when seNefaI compahles are III
ycluded.
xmes of the reports OF insurance companies,
with the consent of the commissioner, eN-
tracing therefrom the original tax sched-
1lles of over seventy companies in order to
have q ready and easy reference for com
"rison Permission should never have been
given to take these original reports from
the office 1t is doubtful whether this In
iurv to the records can be made good.
Moreover, in the absence of these records,
II is impoSSibe to verify the reports of the
examiner. and this office is compelled in
Lhe absence of said records, TO accept his
unsupported word.
"Ail of the official correspondence of the
examiner is marked private and does not
find its place in the files 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 q time. and the deputy,
in the absence of the commissioner. IS leff
entirely in the dark with reference to any Of
fetal matters in connection With this eX-
aminer. (See appended correspondence with
National Casualty company. Aaehen ana