Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-03-07
STATE INSURANCE DEPARTMENT
BEING ATTACKED ~ Ac.
.cusEp MEN.
INCIDENT TO EFFORTS
TO tNFoRcE Law COMPLIANCE
Department Accused Of Showing Fav.
oritism to Other Companies by
Friends and eaeksrs Of National Life
State Auditor eisakIsy's Record Elk.
esiIsnt-Mal<es Short Answer.

Les MONIES, March I.-Ine latest
and most inexcusable effort to drag
the administration of state affairs III
Iowa into the mire is in the form or an
attack on the honesty Of management
Of the state insurance business. This
appears to be an incident to the effort
to clean up the National Life Associa-
ton, in which a deep yellow streak
was discovered; and as If to turn dis
cussion away from the rottenness
there, counter attack is made on the
insurance department.
The suit I'M court to- GUST certain Of
ficials from their connection with the
National is to come into court next
week. A partial reorganization has
been effected but not complete
housekeeping. The persons held to be
responsible directly for the misman-
agement have not yet severed their
connection entirely with the associa-
ton. hence, as part of the defense.
newspapers here have been furnished
with a bitter attack on state insur-
ance methods.
Attack Other Companies.
The attack came from Ben Blanch-
ard, who runs small insurance pub
lication here and apparently he
makes use Of information furnished
him by Mr.. Farley, former examiner.
who quit the department rather sud-
denly and connected himself up with
the National and is now seking to be
appointed state insurance commission
er. The accusation is, in brief, that
the department has licensed associa-
tons or companies not legally entitled
to such licenses.
:Iou may say" said State Auditor
Bleakly, with reference to this mat
ter, that this department has never,
since I became connected with 1t, is
sued a license to any company not
fully entitled to recognition and to 40
business, and any statement to the
contrary is absolutely false. That IS
all care to say on that subject. 1t
shall never go into the papers to an
swer anything coming from Ben
Blanchard. We will try our law suits
in court"
aIeakIy Has Coon Record.
State Auditor Bleakly was In the
senate in 1907 and introduced the bill
recurring new fraternals to nave rates
that conform to the national fraternai
congress standard. Since that law
went into effect only one company mas
been started in Iowa. This was Tue
Common Brotherhood Of America. II
was organized in 1910 and when or.
ganfzed had SIT members and over 2
half million insurance. or, as required
by law, over 500 applications Tor mem
herships or certificates. The assocla.
tion ran along for two years and when
the officials found they could not make
Il 60 they came to the department ana
thru the department it was arranged
the remaining certificate holders
sho,,ld be reinsured in the A. Q. y. W.
which was DONE This was one OF the
companies referred to as illegally IL
censed.
Another was the Automobile Owners
Mutual which is a fourishing mutual
concern. 1t vii be recalled that when
tbis was organized and dlnerence
arose as to its proper form OF organ
ization. Attorney General Byers ue-
cided the matter and pointed out the
wav which was followed to the letter'
There Ia on file in the department the
affidavit .ofy James NJ. Pierce. presloenss.
showing complete requirement wis
the law. as interpreted by the attorney
general. on which they could nave gone
into court and compelled the auoi.or
to issue license. 1t was on TINS
showing the license was issued. the
company permitted Its accounts to be-
come tangled at later date and II
was required by the insurance depart
ment that note for an apparent
deficit be put up before aslicense was
issued; but more recently the associa-
ton has done well and Is prosperous.
The record will bear fullest invest1ga-
ton at every step of the way.
Another accusation was that OF IA
yoritism to a company with which the
state auditor formerly was connected.
His only connection was as an agent
for the Grain Shippers Mutual; but the
record will show that he has held TINS
company to strict accountability ana
in fact the officials have complained
that he was even more sstrict with 1t
than with the other mutuals.
( Whatever else may be said OF state
Auditor .Bleakly, 1t will be admitted oy
all those who have had dealings with
his department that he has made the
hest state auditor for many years ana
IN the handling Of the insurance de-
partment has record that Is entlreiy
clean.
-. 4enAAne FARM