The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-01-26

does not properly represent all ac-
counts and items pertaining TO the
office of the Insurance Commissioners
as they should do. and VIZ recon-
mend that there be Immediately in
stalled IA double-entry set of books
to show at all times an accurate
condition of all affairs pertaining 70
the office which hould include fees.
expenses, advance costs and all
balances on hand in the shape OF
cash and unsolicited ledger ac-
counts. We do not present the state
ment attached to be absolutely cor
rect because we do not think an alb
Solutely correct one could be made
without going back and checking up
the entire business Of the Office, which
We were advised was not desired AT
this time. Therefore, the statement
presented is the best we have been
able To make for the period given as
to investigate and the time allowed
to do it in.
Very truly yours,
SOUTHERN AUDIT COMPANY,
BY c. L. Smith, ". P
We feel that the above letter fully
explains the situation and needs no
comment from us
We find that under Section No.
1850. Eevisal of North Carolina de
hosting securities with the Insurance
Commissioner are required TO legally
transfer same TO HIM as insurance
Commissioned and his successors in
office for the common benefit of all
the of its Registered Capital
policies, in a great many cases this
statute has not been at all complied
with; and the fact that a great many
of the securities deposited here are in
the nature of stocks and bonds pay
able to Bearer shows the impor-
lance of this law being fully complied
with.
We further find that under Section
No. 47S4, Revisal of North Carolina,
the Insurance Commissioner is re
quired to keep a careful record OF the
securities deposited by<each company:
we regret to say that his Section of
the law has not been followed at all,
we find hat there is one deposit in
the office OF the Insurance Commits
sioner securities aggregat1nS $1,000,
100000, and the only record Gf it can
be termed recOrd) which the 1nSur-
ance Commissioner has Of them is a
small book which he carries in his
vest pocket, and upon which some OF
the securities appear, all of which are
written in lead pencil: your Commit
tee desires to call especial attention
to this and recommends to your Hon
orable Body hat this law be fully
complied with at once.
We find that Section No. 1858, Re
Visal of North Carolina, requires that
the Insurance Commissioner should
keep in a permanent form a record
of his proceedings including a CON
else statement of the result of al
official examinations of companies
This law is not kept, and we have
been unable to find where the InSur-
ance Commissioner has any record OF
his matter.
Under Section No. 1923 the Insur-
ance Commissioner is required to col
lect a tax of one-fifth of one per cent
on al of the gross premiums receipts
of the Fire Companies to defray the
Expense of investigating suspicious
fires, and keep a separate account OF
all money and disbursed under said
chapter, and include same in his an
nual report: This has not been done
and your committee is unable to find
any record which is satisfactory to
them of the amount of receipts or
disbursements under this section, and
the same is not included in the an
nual report filed by the COMMISSIONS
except in a lump sum, which in our
opinion does not meet the statutes.
We find that Section 1888, which
requires that the securities deposited
by the Life INSURANCE Companies to
protect their policies registered I'M
der Section No. 1850. is not followed
this statute is not complied with, a.
we find these securities are mingled