The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-06-25

insolvent and placed in the hands Of
receiver
| this committee that Mr.. Schively's con-
duct in holding the Office of deputy in
surance commissioner, and at the same
| time acting Us president of the Pacific
| Live Stock association, receiving sal
| airy and commissions as such president,
and also receiving s300 while president
as deputy insurance commissioner for
official examinations as an officer of
the state of Washington, was highly
reprehensible, and shows him to be an
unworthy official
| That the committee further finds
/ that in April 1907, j. H. Schively, as
deputy insurance commissioner, re-
ceived from the Walla Walla Fire In
| surance Company, of Walla Walla,
! Washington, 5000 for examining the
company and again in July of the
same year received 5000 to cover an
examination charge; that Mr.. Schively
| did not present on either occasion to
the officers of the company any state
ment of the expenses, and that the law
was not complied with; that these
charges made to the Walla Walla COM
pany seem to the committee to be I'M
reasonable, arbitrary and excessive,
and, following each other by such
short period of time, are difficult of
explanation; that the company was
| later placed in the hands of receiver;
| that this incident further confirms the
conclusions of the committee expressed
| in the preceding paragraph Of these
/ findings and is additional evidence of
Schively, as deputy insurance COM
missioner.
The committee further finds that ].
| H Schively, as deputy insurance COM
missioner, has for long time past de-
manded of and received from insur-
ance companies a fee of 81 for attach
! ing to the annual published statement
of the affairs of the company what Mr..
| Schively terms "the insurance COM
missioner's certificate of publication;
! that the state has never received the
! fees so collected; that there is no au-
| Il, ~, arbitrary
charge.
The committee further finds that the
| insurance laws of this state require the
| insurance commissioner, or his deputy,
to make a detailed examination of all
local or domestic insurance companies
"at least once a year., that if the con-
{ dition of the company warrants it, it's
| license may be revoked; that this law
| is a salutary one and is for the benefit
and protection Of the insuring public;
| that if the law were followed, it would
| be difficult, if not impossible, for fraud
ulent. irresponsible and insolvent COM
panies to exist; that J. HI. Schfvely,
deputy insurance commissioners, has
failed to perform his duties under this
law; that such neglect and failure has
| permitted 1nsolvent companies to flour
| ish and exist for at time at the ex-
! pense of the insuring public that Mr..
Sahively testified before the commit
tee that his failure to examine local
companies as the law requires was due
to Inadequate office assistance; that
| this excuse seems to the committee to
| be weak and unsatisfactory; that Mr.
Schively's failure to observe this law
has cost the people of this state thou
sands of dollars, which money has been
received by insolvent and now defunct
companies whose licenses should have
been revoked after a proper examina-
ton by the insurance department.
| The following findings are based
| upon the evidence introduced before
| the committee, transcript of which is
herewith submitted, and upon these
| findings the committee makes the fol-
| lowing conclusions:
That for the eight years ending jan
4 uary 10, 1909 Sam H. Nichols was ex-
officio insurance commissioner of the
state of Washington; and during said
time J. H Schively was deputy insur-
ance commissioner, and as such deputy
insurance commissioner was for all OF
said time practically in full control of
the insurance department of this state;
/: that he issued and revoked licenses,
and conducted and managed the entire
department; that his wrongful, arbi-
trary and unwarranted conduct, as set
forth in the above findings, was not
only highly reprehensible, but ex-
tremely injurious to the interests of
| tho y,cI1ripu nnb1io in this state. that