The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-01-10
OFFICERS UP HOLD
RIGHTS Of STATES
Virginia Commissioner and Sen
ator Protested to Treasury
Department.
sUNDRY KICKS AS TO TAXES
Citizens Air Woes to DR.. Free
man-Money of Treasurer in
Closed Bank.
sUNDRY KICKS AS TO TAXES


suit IN clash between the Insurance
| Bureau OF Virginia and similar de-
partmentg OF other States, and tho
Treasury Department. in Washington.
| over State supervision of trust COM
panies. is apparently in fair way OF
settlement. A plan of adjustment is
being worked out by a committee OF
| the National Association of Insurance
commissioners. Of which Colonel JOS
eph Button. the Virginia commission
er, is chairman.
] a plan of action has been devised
by the committee as a result of a CON
ference held in Washington saturday
between the Insurance Commissioners
committee-Senator Thomas s. Martin.
OF Virginia; Senator Frank b. Bran
degee, OF Connecticut; Charles d.
titles, Assistant Secretary of tho
Treasury: Henry c. Wilcox, vice-prcs
ident of the American Surety Com
pany. and John r. Bland. president Of
the United States Fidelity and Guar
anty Company.
| Had No Authority.
The United States government hy
act OF Congress passed in 1894, began
the acceptance of corporate security
Tor Its officers. replacing the personal
| bonds which had heretofore been
| given. The government was precluded
from exercising authority over these
surety concerns in the way of exami-
| nation because OF the decision of tho
United states Supreme Court In tho
famous case of Paul against Virginia.
| In which 1t was held that insurance "a
not commerce. and is therefore not
subject to Federal supervision. The
suit was brought by Colonel Samuel
Faui' the first president OF the Life
insurance Company of Virginia
| The row came up over the issuance
OF circular by the Treasury Depart
ment. which was claimed to be an
EFFORT to rob the individual States OF
their rights of examination of and
supervision over surety companies nv
an evasion OF the Supreme Court de-
cision referred to. The State Insur-
| ance Commissioners, In session IN New
York on December %, discussed Tho
matter. and some of the yiews ex
pressed We're decidedly forcible in re-
| 1erring to an apparent attempt to take
! away the rights OF the States. 4 com
| mittee prepared warm resolution. bur
Gamer counsel prevailed. and reso-
! tuition was finally adopted as offered
by Superintendent of Insurance Hotcb.
| KISS, OF New York. as a substitute
Asked Withdrawal.
| RMS resolution covered the amoint.
| inent OF n committee to go to Wash
| inston and have a conference with the
secretary of the Treasury in which
| that officer should be asked to with.
| ara" the offending circular and ac-
cept the certificates from the home
states of the various surety companies
IN lieu of such investigation. Presi-
dent Joseph Button. of Virginia: Com.
| missioner T. II. Macdonald, of Con
necticut. and Superintendent Hotcb.
KISS of New York, compose the com
| m:ttec.
Tile circular requires many thinrs
as presidents to the acceptance ny the
| Treasury Department OF bonds Issued
by surety companies. One of these is
that the Secretary of the Treasure
shall be satisfied from the informa.
ton furnished "and from such en-
animation Of the company, at it's own
eNpensc, as he may cause to be made.
that such company has a fully maid,
up cash capital OF $500 and IS 9th
erwlsc sound. Other conditions deal
win great m'nuteness with the man
ner III which assets can be Invested
! and as TO the character Of tho ljabili-
ties. FURTHER. each company must file
an annual statement upon form fur
hished by the department.
Department Comes acros..
When Senator Martin. Colonel Rut.
ION and others met Assistant Secretary
itilles, they were Informed that tl,c
| department had no objection 10 ao
cept'ng the vouchers of certain nj the
| state insurance Departments as TO tho
soundness and solvency of tho surety
companies. 1t was stated Furthermore
! that the moro drastic regulations wore
meant to apply to newly organized
companies and were not meant 10
cause the larger and well established
companies any embarrassment
! In certain OF the newer states i,
was said, the government has work
involving millions of dollars, In which
II requires bonds. In some Of these
surety companies have been organ.
lied or are In process OF promotion
and are clamoring for business.
According to the plan worked out
by the commissioners. and presented
by Colonel Button, the Treasury De-
partment is TO Cooperate with State
departments. II information, Is want
cd about any particular company. n
letter addressed to the commissioner
OF tho State In which It has It's home
office, will. II is declared, bring tho
necessary results. or. in case It docs
not, then tho matter will DO given
attention on application TO j. II.
| Young, of North Carolina. chairman OF
tho committee on examinations OF tho
= National y Association of Insuranc,