The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1909-02-04

compared with the IlStS brought Dy
the representatives of the different
companies having securities deposit
ed agreed accurately. and also
agreed with the pencil memoranda in
the book. These securities aggregate
81, BOG, ,Sf2.12, and | believe are
worth on the market from one hun
dred to one hundred and fifty thous-
and dollars more than the face value
at which they are listed.
The Auditing Committe expresses
the opinion, as further criticism in
their report, that the securities de
posted under Section 47SO are in
some instances not the character of
securities required bv Section 1T31.
Your Commissioner is of the opinion
and has so ruled officially that the
law does not require that they shalt
be OF tue same class of securities
especially when taken in connection
with Section 4131 and OF the Acts of
1907, amending Section 4731. How
ever, this is question of law and the
Commissioner will submit it to the
Attorney General for his ruling and
will be guided thereby in the future.
The Auditing Committee critici~es
| this department for failing to put III
permanent book form a record of the
Commissioners proceedings in the
official examination of all companies.
Your Commissioner does not believe
that the law cOntemplates this and If
it does is impracficable to be con-
piled with. The files are made and
kept complete of each examination.
The Auditing Committee reports that
the Insurance Commissioner has
mingled the securities deposited I'M
der different laws. 1t is inconceivable
how the committee made such II mis-
take. They are kept absolutel v sep
arate and apart as an inspection by
| your committee will demonstrate.
Your Commissioners desires to state
that there has been no change OF Sc
curities of any OF the companies by
reason OF the investigation OF the
| Auditing Committee. but only such
changes as are constantly made un-
dergoing out of the necessities OF busi-
ness, there being always more changes
1T the beginning of the year than at
any other time. The commit tee seems
to be disturbed at what they dpsignat-
ed to be the mingling OF State and per-
SOnal finds. These are the facts and
we're SO stated To the committees
Prior to the change of the law. effpr-
tive January 1st, 1909. by which all
fees are now turned into the State
Treasury. certain fees belonged to
the Insurance Commissioner
When a check was received by the
Insurance Commissioner covering
part taxes due the State and part
fees due the Insurance Commissioner.
aud made PAYABLE to the Insurance
Commissioner. such check was de
posted to the credit OF James r.
Young. InSuranc" Commissioner. aud
no check since the commencement nf
the department. pHya bic to James X.
Young. Insuranrp Commissioner. ha-
ever been treated otherwise nttiiv
upon settlements, with tie Stale
Treasurer all funds ht!.,ugln4 T., tH,'
State were property accounted Inr
and n check drawn upOh this ;I',.,ui,t
in favor OF the StHtr. aud tie oniv
mingliDg Of per>Onni IL .lti.. in~ bp.ii
that the Insurance ,mlni~siOner has
permitted IL portion of ms own ices
to remain in the bank tot he credit ri
James r. Young, Iusurunr" C,3nlni~-
-iOner, and not taken ont in no
other instance have any personal
funds of James T. Young. entered
into this account i'll any way whatever
The Committee criticises some OF
the securities because they were made
payable to bearer and not to the In
surance Commissioner. The securi-
ties referred tb are usually North
Carolina State bonds and similar
bonds, which everyone knows are
made payable to bearer and consti-
tute the very highest class of securi-
ties for the protection OF policyhold-
ers and the public.
Respectfully submitted.
JAMES r. YOUNG,
Insurance Commissioner