The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1909-03-11


the bank books
The Auditing Committee reports
that, 1--WE find that under section No.
41SO, Revisal of North Carolina,
companies depositing securities with
the Insurance Commissioner are re-
quired to legally transfer same to
him as Insurance Commissioner and
his successors in office. for the COM
mon benefit of all the holders of it's
Registered Capital policies. In a
great many cases this statute has
not been all complied with. and the
TACT that great many OF the secur-
tiles deposited here are i'm the nature
OF stocks and bonds PAYABLE to
Bearer" shows the Importance OF
this law being fully complied with.
This committee assumes that the
Auditing Committee by referring to
the section of the Revisal means to
critlcise the securities deposited with
the Insurance Commissioner.
For the protection of all holders of
'Registered Policies" the criticism
appears to be twofold: first. as to
the character of the securities ac-
copied by the Insurance Commits
sioner. This depends entirely upon
the construction of the law. Sections
41SO and 4131. Since the report of
the Auditing Committee has been
made public this matter has been re-
ferred to the Attorney General who
rules that the Insurance Commits
sioner's construction of the statute
is the correct one and that the Audit
ing Committees construction is
wrong. A copy OF said ruling is here
to attached and asked to be taken
as part OF this report. We concur in
this opinion of the Attorney General,
and find that the Insurance Commits
sioner has acted in accordance with
the law in accepting securities under
section 47SO of the Revisal, but we
are of the opinion that the law ought
to be changed so that the Commits
sioner would be directed to accept
under said section 7S4O only the
class Of securities described in section
4731 of the Rcvi>al, and so recon-
mend.
The second criticism. "Thata good
many of the securities deposited here
are in the nature OF stocks and bonds
payable to ''Bearer?" There are no
stocks deposited with this Commits
siOnpr payable to bearer. The bonds
are North Carolina State bonds and
the like that are payable to bearer,
and we think the law is sufficiently
complied with by their depositing
with the Insurance Commissioner
without an actual endorsement. The
transfer of certain other securities de-
posted with the Insurance Commits
sioner was criticised by the Auditing
Committee The transfer of said Sc
curities was made as follows: at the
time of depositine them there would
be made out a detailed descriptive
list of the securities. to which was At
tached a transfer as followes:
This agreement made and entered
into this the-Of-A. d. 100,
by and between the Insurance Co, OF
N. e.. of the first part and j. r.
Young. Insurance Commissioner, his
successors in Office, of the second part
witnesseth:
That said party OF first part, The In
surance Company, has this day trans
ferred to said party ofsecond part. J.
r. Young, Insurance Commissioner
and his successors in office the securi-
ties represented in the attached list
and does hereby assign and transfer
each and every one of said securities
to said Insurance Commissioner. with
full power to take, hold. collect, as
sign and use said securities for the
benefit of the policy holders of said
INSURANCE Company and in their
stead to do each and every act and
power legal for said company as the
original holders of said securities to
do"
We think such transfer was suffici-
ent. However, in each instance the
attention of the insurance companies
having been called thereto transfers
acceptable to the Auditing Commit
tee were procured before they filed
their report, although deemed by the
Insurance Commissioner unnecessary
under the law.
The Auditing Committee make the
following report as to the record OF
securities deposited with the Insur-
ance Commissioner:
eve further find that under section
No. 41S4, Revisal of North Carolina,
the Insurance Commissioner is re-
quired to keep a careful record of all
the securities deposited by each com
pany. We regret to say that this
section of the law has not been fol
lowed at all. We find that there is
on deposit in the office of the Insur.
ance Commissioner securities aggre.
eating 81, 100000 90 and the only
record (if it can be termed a record)
which the Insurance 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 pen
ell We find that the records as to
these securities are keptin the follow.
ing manner, as an insurance cOmpa.
ny makes a deposit with the Insur.