The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-07-20
GOVERNOR DESIRES
A new Plum TREE
Would Like to Have State In.
surance Bureau to Weld
More Patronage.
he DENIES THIS CHARGE
MANLY ONCE TRIED TO CREATE
SUCH A DEPARTMENT AND
sTiRREo UP A BIG SCANDAL,
BUT MET NO SUCCESS.
palladium Specially

UO1 MET NO SOCCeSS.
palladium Specially
Indianapolis. July 2o.-The charge
II being made here that the reason
for Governor Marshalls activity In
agitating the insurance question in
this state just now Is that he hopes
to induce the next legislature to Gre
ate . department Of insurance entirely
separate from the office OF the auditor
Of state, which now has charge OF In
surance affairs, and that he hopes In
this way to make some new offices
into which democrats may be placed.
The governor, however. denies this In
the most emphatic language. and the
story II not taking q very deep hold
on those who hear It. Marshall has
always preached economy in state ad-
ministration and has had much to say
about the large number Of bureaus.
commissions and boards that now
have quarters in the state house. He
has all along contended that there
were too many state officials and en-.
ployes.
II 10 believed to be more likely that
II an effort was made to pass q law
in the next legislature to create an In.
surance department the democrats
would line up against 1t. In fact. they
would have to do so to remain con.
sistent with their record on that sub
ject. It will be remembered that dur.
ing his administration Governor Hanly
tried to bring about the creation Of a
separate insurance department. He
wanted to divorce the insurance de-
partment from the state auditors Of
flee.
. Charge Against HanIy.
Il was charged then that he wanted
10 make . position AZ state insurance
commissioner for Capt. w. H. Hart.
former state auditor, or w. G. Vanars-
del, o well known Insurance man. This
was denied. however. But Hanly went
on and stirred up the greatest insur-
ance scandal ever known In the state.
He succeeded In bringing about an in
vestigation Of the affairs Of some of
the largest life Insurance companies
In Indiana, with tho result that num-
erous officers resigned and the com.
panies were recognized. Old practices
which cost tho policy holders i'm.
msnse sums OF money were cut out
and life Insurance. a. . result Of that
agitation. was placed on better basis
IN Indiana
Hanly had bills introduced in the
/, legislature for the creation of an in
surance department. He fought for
them with all Of his power. and his
followers In the legislature supported
him In the fight. But he lost out. The
democrats and some Of the republi.
cans voted against the bill. for no 9th.
or reason than that It was q Hanly
measure and Hanly had incurred the
displeasure Of many Of tho members
Without any reference to the ques
ton of whether q separate insurance
department would be q good thing
Il 10 . fact that Hanly's agitation OF
the life insurance question at that
time brought about reforms In the In
surance business in this state that
have been worth millions to the pol
icy holders.
This year Attorney General Bing
ham has been engaged In a Legal
struggle with the fire insurance com
panies doing business in Indiana In
an effort to break up the combine
which exists among them to maintain
high rates. He supported Hanly In
his fight for separate insurance de
partment three years ago and he II
fighting now to bring about reforms
In the fire insurance business.
Not Enough Taxes.
Governor Marshall has discovered
recently. he says. that the auditor O.
state has not been collecting as mucl
tax from the New York and New Jer
sey fire insurance companies doint
business In Indiana as he should col
lect. He says that the law gives tn,
auditor the right to collect three per
cent on all premiums collected OF
business done In Indiana after deduct
ing the total Indiana losses suffere,
by each company. or that he may col
lect . straight two percent tax on al
business done in the state. regardless
OF losses. He says the auditor ha
been collecting on the three percen
basis after deducting losses. and tina
II he would collect q straight tw,
percent It would mean $4,000 addit
ional each year in taxes which tn
state would collect. The governo
has called on the auditor Of state 4
change the system OF tax collection.
This 10 merely q matter Of business
Tho governor believes he 10 doing hi
duty In calling on the auditor L
change the method Of collecting take
and ~ far ~ 10 known no one IL Ger
surfing him for 1t. further than to sa
that he 10 trying to bring about ne,
insurance department into which b