The Caucasian. (Clinton, N.C.) 188?-1913, 1909-01-28
as a personal matter and enters I'm
his ledger account.
No Disposition to Conceal.


the assistance We could ask for in
making the investigation and show
ed no disposition to conceal any OF
his records, and while our investiga-
ton did not disclose any evidence OF
dishonesty on the part of any one
handling the funds, we think the
system of bookkeeping Is very un-
satisfactory and does not properly
represent all accounts and items
| pertaining to the Office of Commits
sioner of Insurance as they should
do, and we recommend that there be
| Immediately installed a double entry
set of books to show at all times the
accurate condition of all affairs per-
tanning to the Office, which should
include fees, expenses, advance costs
and all balances on hand in the
shape of cash and uncollected ledger
| accounts. We do not present the
statement attached to be absolutely
correct because we do not think that
an absolutely correct one could be
made without going back and check
| ing up the entire business of the Of
flee since the beginning, which we
were advised was not desirable at
this time; therefore, the statement
presented is the best we have been
able to make for the period given us
to investigate and the time allowed
to do it in.
"'Yours very truly,
SOUTHERN AUDIT COMPANY,
"'By c. L. Smith, V. p
I'VE feel that the above letter
fully explains the situation and
needs no comment from us.
Law Not Complied With.
1--WE find that under Section 4SO,
Revisal, companies depositing secur-
tiles with the Insurance Commits
sioner are required to legally trans
fer same to him as Insurance Com
missioner and his successors in Of
flee for the common benefit of all
the holders of their registered capi-
tai policies. In a great many cases
this statute has not been at all COM
piled with, and the fact that a great
many of the securities deposited
here are in the nature of stocks and
bonds payable to bearer shows the
Importance of this law being COM
piled with.
1--WE further find that under Sec.
1874, Revisal of North Carolina, the
Insurance Commissioner is required
to keep a careful record of the Sc
curities deposited by each company
We regret to say that this section Of
the law has not been followed at all
We find that there is on deposit in
the Office of the Insurance Commis-
sioner securities aggregating ST.
100000 and the only record Gf it
can be termed a record) which the
Insurance Commissioner has of them
is a small book which he carries in
his breast pocket, and upon which
some of the securities appear, all of
which are written in lead pencil.
Your committee desires to call
special attention to this and recon-
mends to your honorable body that
this law be fully complied with at
once.
eve find that Sec. 1853, Revisal
of North Carolina, requires that the
Insurance Commissioner should
keep in permanent form a record of
his proceedings, including a concise
| statement of the result of all official
examinations of companies. This
law is not kept and we have been
unable to find where the Insurance
Commissioner has any record of this
matter
"Under Sec. 1929, the Insurance
Commissioner Is required to collect
tax of one-fifth of one per cent on
all the gross premium receipts of
the fire companies to defray the ex-
pense of investigating suspicious
fires, and keep separate account CT
all monies received and disbursed
under said chapter and include same
in his annual 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 same is not inciud-
ed in the annual report filed by the
commissioner except in a lump sum-
which in our opinion does not meet
the statute.
eve find that See. 4783, which
requires that the securities deposit
ed by the life insurance companies
to protect their policies be register.
ed, is not complied with, as we find
these securities are mingled with
other securities placed by the com
panies for the protection of theil
guaranteed capital. We also fine
that the Insurance COMMISSIONS
makes his fiscal year end on Marcl
| 31st, and recommend that it be 81
| changed as to end on November 80
as does every other State institution
1--WE find a complete and accurat,
record of the investigation Of fire
: such as he is required to keep.
Disbursement of Funds.
, "Some of the State institution
: are not required to disburse thei
: funds through the State Treasury
t and the Auditor, and the committe
recommends that this be required o
: them all whether supported who'll
f or in part by the State, thus givin
$ the State an insight and supervisio
= of their management.
< THAT all securities deposited un
d der Sec. 47S0, Revisal, be submitte
. ffn tho affornou Uopora1 uho cbo