Omaha daily bee., 1919-08-31
BY J. E. HART.

Seey. Deps. Of Afeos sno
The department Of trade. and
commerce combines the former
banking department, insurance de-
partment, fire prevention depart
ment and blue sky department under
one secretary appointed by and re-
sponsible to the governor.
For the purpose Of administra-
ton the several lines OF business
combined under this department
have been grouped in divisions
styled bureaus; the bureaus in turn
being in charge OF a chief. The
chief of bureau is the detail man
and makes reports and findings to
the secretary Of departments for re-
vision and approval. while the final
word in all matters is with the gov
ernor.
The purpose OF this form Of adj
ministration is executive efficiency,
individual responsibility and econ
omy.
Here's the System
The Ines OF business covered by
the department of trade and COM
merce have been grouped under four
bureaus as follows: -
The bureau of banking has super
vision over o82 state banks, ~
building and loan associations, 2S
trust companies and one instaltment
investment company. These l,OSl
financial organizations have COM
bined assets of almost $400, 000, 600.
The fact that only two small bank
failures have occurred in Nebraska
in eight years is indicative Of the
substantial foundation, the careful
organization and conservative man
agement which these institutions
enjoy. -
The bureau Of securities, common
" called the blue sky department,
succeeds to the supervision exer-
cised by the railway commission
prior to July 10, when the admins
trativc code law became effective.
This bureau has supervision of all
corporations, co-partnerships or in
dividuals offering to sell any shares
of stock either foreign or domestic.
The recent session Of the legislature
enacted an entirely new law which
brings all stocks under the SUPER
vision of some authority regardless
whether 4 new company just being
organized or an old company offer
ing new or additional shares of
stock.
This Law Has Teeth.
This law has 4 full set Of home
grown teeth in it and If sanctioned
BY the courts, there will Be a decided
decrease in the number of stock
statesmen travelling over the state
hunting suckers to buy rainbow
stocks promising unheard of wealth
in dividends. The old law and IL
.censes granted under it were used as
recommendation by some unscrup-
ulous agents. The energies of this
bureau will not hamper the opera
ton of any Legitimate Nebraska en-
terprise honestly organised and sys-
tematically and economically. man
aged, but on the other hand will ben
eft the worthy enterprise by hinder
ing and eliminate ting the sale of stock
in doubtful and fraudulent con-
Germs.
No legitimate, deserving enter-
prise should hesitate to make appli-
cation and submit to the investiga-
tons of bureau of securities. r.
The bureau of insurance will deal
with only one subject-insuranee in
all its branches-and will be in
charge of 4 trained insurance actu-
airy and corps Of trained examin-
ers. The constant endeavor of this
department will be to safeguard the
interests of the insured and the COM
pany both.
The interests Of the company and
its policyholders are 50 closely
allied that it seems almost necessary
at times to protect one and then the;
Other to save them from themselves.
The intricacies Of the insurance BUSH
ness and the MANY new and untried
risks incident to changed methods of
production and distribution brings
to this department many perplexing
problems and lots Of grief. The
phraseology of the new code bill and
the blue sky law gives the DEPART
ment of trade and commerce super
vision over domestic stock insur-
ance companies during their organic
zation period. Something heretofore
unheard Of in Nebraska. The care OF
securities deposited by the insur-
ance companies admitted to Nebras-
ka is in itself 4 huge task and calls
for organization and attention Of the
highest order. These securities are
deposited by the companies and
held by the department for the pro-