The Caucasian. (Clinton, N.C.) 188?-1913, 1910-11-03

cuTate ledger balance On DeesfDOsE Is
1906. for the. reason that we found
I'm some Instances where business
handled during the period Of our In
vestigation, which began December
/. 1905, had been entered on the
ledger prior 10 that date. but we did
not go back far enough 10 determine
all charges against the commissioner
for business so entered that belong
ed 20 the period Of our investigation
In view OF the manner in which
the books have been kept and the alb
seuce Of a proper cash book OF re-
CENTS and disbursements the best We
can be able 20 do. with the period you
wished investigated, was 70 establish
all charges and collections of State
funds according 10 the records found
and allow credits for disbursements
according 10 bank vouchers, which
we have done, and herewith enclose
statement Of same, showing balance
over in bank amounting TO $4,9b5-09
and which settlement you viii note
does not include the commissioner
fees. charter fees, appraisals advanc-
Cd, cash and coupons which the com
missioner claims we're items not due
10 the State and were handled as
personal matter and entered in his
ledger account.
THE commissioner gave Us all the
assistance We could ask for in max
/ ing the investigation and showed no
disposition 10 conceal any Of his re-
cords, and while our investigation
/ did not disclose any evidences Of dis
/ honesty on the part Of any one hand
| ling the funds, we think the system
| Of bookkeeping is very unsatisfac-
| tory and does not properly represent
all accounts and items pertaining to
| the Office of the commissioner of in
surance as they should do, and We
recommend that there be immediate
| ly installed a double entry set of
books to show at all times the accur-
ate condition of all affairs pertaining
to the office, which should include
fees, expenses advanced, costs and
all balances on hand in the shape of
cash and uncollected ledger accounts.
We do not present the statement at
tached TO be absolutely correct, be-
cause we do not think that an alb
solutely correct one could be made
without going back and checking up
the entire business of the Office since
the beginning, which We were adj
vised was not desirable at this time
therefore the statement presented is
the best we have been able to make
for the period given us to investi-
gate and the time allowed to do 1t in
;, yours very truly,
= SOUTHERN AUDIT CO.
by C. L. Smith, V. P"
I'VE feel that the above letter
fully explains the situation and needs
no comment from US.
I'VE find that under Section 1880
Revisal, companies depositing secur
tiles with the insurance commission
er are required to legally transfer the
same to him as insurance commits
sfOner and his successors in office fol
: the common benefit of all the hold
ers of their registered capital poll
cies. In great many cases thi!
statute has not been at all complied
with, and the fact that a great man,
of the securities deposited here arr
in the nature of stocks and bond
payable to bearer, shows the import
ance of this law being complied with
I'VE further find that under Sec
9 ton 4784, Revisal of North Carolina
the insurance commissioner is requir
= ed to keep a careful record of tn
securities deposited by each com
:. pany; we regret to say that this sec
ton of the law has not been follow
:, ed at all. We find that there is o.
deposit in the Office of the insuranc
/ commissioner securities aggregatin
$1,0OO,000, and the only record Il
= it can be termed a record) which tn
. insurance commissioner has of the1
:, is in small book which he carrie
in his breast pocket and upon whic
some of the securities appear, all {
which are written in lead pencil
; Your committee desires to ca
- special attention to this and recon
mends to your. honorable body thu
y this law be fully complied with
q once.
i 1--WE find that Section 1883, r,
Le visal of North Carolina, requires tn;
ar the insurance commissioner shoul
9 keep in permanent form a record
v his proceedings, including a concis
statement of the result of all ofici
n examinations of companies; this la
a is not kept and we have been unab
~ to find where the insurance commi
a sioner has any record of this matte
ID Under Section 1929 the insuran,
A. commissioner is required to collect
" tax of one-fifth of one per cent {
If all the gross premium receipts of Il
IL fire companies to defray the expen
W. of investigating suspicious fires al
Y: keep separate account of all mon,
to received and disbursed under sa
ne chapter, and include same in his a