Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1909-01-29
MAY BEGIN SUIT
TO RECOVER BACK
INSURANCE FEES
TREASURER DAHL ASKS GOVERNOR
FOR THOROUGH PROBE OF
DEPARTMENT.
MAS LAW BEEN VIOLATED 2
No Record of Former Commissioners
Having Paid Over Fees to the
State Treasurer.
PROMPTED BY BEEDLE INQUIRY.

MADISON, Wis, Jan. 25.-[Special.l
Another sensation in the projected in
surance department investigation by the
Legislature was sprung today, when
State Treasurer A. III. Dahl sent let
ter to Gov. Davidson, recommending
that IF you order an investigation by
the Legislature Of the insurance depart
ment, that you extend the investigation
to cover the records of former commits
sioners to the end that proper steps may
be taken to recover what is due to the
state"
Should the Legislature decide that
what is due to the state" are the fees
that have been collected and retained
by the commissioners, past and present,
in addition to salaries, the amount to be
recovered may amount to hundreds of
thousands of dollars. Treasurer Dahl in
his letter promises the governor that if
the investigation should show that the
fees have been illegally retained he will
maintain an action in the name of the
state" to recover the amounts due the
state
Seven Have Had Office.
No one knows how far back the meth
Cd of retaining the fees by the commits
sioners extends. The insurance depart
ment was organized in 1873, and after
1881 the office was made elective. The
seven men VINO nave served Iue StdlS its
insurance commissioners, are:
p. l.. Spooner, Jr.. 1878 to 1887
Philip Cheek, Jr.... 1887 to 1881
WILDER M. Root. 1881 to 1880
William A. Fricke. ............. 1895 to 1898 1898
emil Gijohann 1898 to 1903
Zeno NJ. Host. ................. 1903 to 1907
George e. Beedle. .............1 1907
The letter of State Treasurer Dahl to
the governor follows:
To His Excellency, J. o. Davidson, gov
80, Wisconsin statutes of 1898, provides as
| follows:
The commissioner of insurance shall make
| daily payments to the state treasurer Of ali
| fees and taxes received and shall on the
first day of each month report in detail
! the receipts of his department during the
preceding month to the governor, secretary
of state and state treasurer, together with
| the dates of such payments to the treas
| ure2. .---~~~-s~-"s=r~~ 'r"7~ ~~--"7-,
The attorney general in an opinion rem
| dered under date of January %, 1909, with
reference to the charges made by Mr..
| Waite, against George E. Be lle, commits
The presumption Is tha1 al fees ana
chaTges belong to the state and are payable
| into the treasury, and any official and EN-
ploye claiming the right to retain such fees
| in addition to charges, must be able to
show an explicit law relatiye to said right
1t would appear from the section of the
| statute above quoted, namely, that al
fees collected by the insurance department
shall be paid over to the state treasurer,
| and the opinion of the attorney general
that the presumption is that all fees and
| charges belong to the state" that the
| state is entitled to a recovery of the fees
collected and retained by former commits ais:
soners of e. Ill, fan do to nd IN me me
payment of such fees by the commissioners
of several years past | would respectfully
| recommend that if you order an invest1ga-
! ton by the Legislature of the insurance de-
| partment, that you extend the inyestiga-
| ton to cover the records of former COM
| missioners. to the end that proper steps
may be taken to recover what Is due to the
| state.
| The amount thus due the state is no
| small matter, as Mr.. Beedles statement
to more than $4,000 per annum for the val
uation of life insurance policies in Wlscon-
| sin alone
| If the investigation should show that the
fees have been Illegally retained, 1 shall
! commence action at once to recover the
amounts due the state.
/ Madison, Wis, January %, 1909.
A. H. DAHL, State Treasurer.
Recalls Treasury Suits.
Not 81 zee 1891, when Democrats in
power began the famous state treasury
suits for the collection of interest on
state money which resulted in $373,3S5.-
95 being turned back into the state treas
ury. These cases were fought to the
supreme court of the state. At first &C.
tons were started against only two
GreaSufpfS, DuI Will TIE SuStSSoIuA Icl LII
nation of these, suits against other for
mer state treasurers were begunS and
while all did not reach the supreme
court, judgments to the amount of about
$725. 900 were secured against former
| treasurers and their bondsmen.
This case is being cited today as al
most parallel to what may develop in the
insurance investigation. The bonds of
the insurance commissioners are good
for a number of years and If actions
should be started the bondsmen would
be included.