The Birmingham age-herald., 1910-07-10
JULIAN RENDERS
 ANNUAL REPORT
Urges Liberal Laws and Atti-
 tude Toward Corporations
OPPOSES STATE BOARD
Insurance Commissioner Thinks Rate Making Board Is of No Value and in Many Cases Damaging.
 Fire Marshal Law


 N. Julian, state commissioner of insur- ance, made to Gov. B. B. Conner today is a call for liberal laws and liberal att titude to all classes of corporations. Urg- ing every safeguard for the policy-hold- CTS, he, at the same time, points out that corporations are slow to Invest in those states that enact drastic and unwise laws. "The experience of those states that have attempted to compel impossible things of insurance companies has been disas- trous," he says.
 MT. Julian opposes insurance rate-mak- ing state boards, finding them of no value, and in many cases damaging, and hopes Alabama will not attempt to or ganize one. He urges laws by which bus mess now going to companies not au- thorized to write in the state may be secured, that municipal taxes on insur- ance companies be reduced, as they are now out of reason, and are tending to keep the rates up, suggests that there be provision for examination of agents before they are allowed to solicit, in that there may be better tone to the busi- ness and more efficiency of service.
 Means by which fraternal companies may be brought under the control of the department are urged, as under the guise of fraternity many organizations from time to time rob the people. It is also recommended that special charters be repealed and that the practice of amending old charters to avoid the legal reserve requirements be stopped.
 Tt is found that the fire marshal law is doing very well, but is not given the support it ought to have from solicitors; also that the anti-rebate act be made to cover all sorts of insurance corporations. MT. Julian's report in full follows: Report in Full
 'I cannot too strongly urge upon your excellency the need of strengthening the visions for the better administration of the insurance department and the protec- ton of policyholders.
 'It is with pleasure that I call your at tention to the continued increase of rev. enue derived from this department, and the exceedingly low cost of the mainten- ance of the department.
 'Tn my report to you last year Q9o9) I recommended that certain legislation be enacted for the benefit of the department The legislature in extraordinary session in 1909 saw fit to enact several laws which have been of great benefit to the de- partment. The laws have worked well, but like all new enactments experience has pointed out the defects, and many of these laws should be strengthened.
 Fire Marshal Law
 '"This law was enacted in August last year. and has been in effect since the first day of October. Under the provisions of this law the department has inyesti- gated several incendiary fires and has developed strong circumstantial evidence in several of the cases. l regret to re- port, however that there is a lack of CO., operation on the part of the solicitors of the state in the enforcement of the law. We have diligently and faithfully worked up all evidence anywhere it seemed justt fled, and have presented 1t to the solici- tors. So far we have failed to secure conviction.
 'eThe moral effect of the law, however, has been good. Incendiary fires are on the decrease in Alabama, and we believe that with the proper cooperation Of the solicitors, that in the course of short time we will have succeeded in breaking up incendiarism.
 This law should be strengthened by giving the deputy commissioner, or fire marshal, the right to search any building that is supposed to contain evidence that would tend to secure conviction in arson cases. It should also be strengthened by giving the right to the deputy commits sioner making investigation, to arrest, or cause to be arrested, parties that evil dence may show are connected In any way with a suspicious fire.
 Rebate and Discrimination
 .~rhis subject was treated by the recent session of the legislature. and very fine statute was enacted, as applies to life insurance companies. I respectfully recommend that the next legislature carry this statute bit further and include all insurance companies.
 Unauthorized Insurance
 .arbe state of Alabama is being deprived of a considerable sum of revenue by inter- insurance companies or associations. These companies or associations operate under the guise of mutuals and cover several and sundry business lines. It Is that the insurance rate Is cheaper to the insured, and as an induce ment to placing such insurance 1t Is held out that the insurer will participate in the earnings of the association. Upon this representation quite a large volume of business Is being placed in the east and the west which should go through the regularly licensed local agents. Our laws permit the placing of insurance directly hv the property owner, provided, how ever. that i per cent of the premium Is remitted to this department. 1 regret to advise that this statute is not compiled with generally It occurs to me that the legislature should pass a stronger statute that will at least compel companies of this character to qualify through this de- partment, giving the insurance commits sioner the right to pass on theit annual statement and naturally give the insured an agent for service against the company should a claim arise. The insurance com na nies that have compiled with Alabama avs are paying tax for the privilege of doing business in this state, likewise the local agent is paying state tax and II does not seem fair that condition should be permitted to exist by which hus,ness Is being sent out of the Otate, taking revenue away from the regularly ,icensed corporatons and agents, wh& are y;vine their support to our statutes and to our revenue.
 Attorney for Department
 "Experience during the past three wears has demonstrated the urgent ne- cessity of the department having at it's command an attorney of ability to prosecute violations of the insurance laws I am of the opinion that if law could be enacted that will give the department an attorney to prosecute violations of law and represent the department in other matters that the amount saved the state would more