The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1925-08-13
SMITH REOPENS
EKERN SQUABBLE
Insurance Commissioner
Resumes His Criticism
of Ekern Today.
MAKES A SUGGESTION

Madison, Wis. - - w. stan
ley Smith, state insurance commits
sioner, today resumed his criticism of
Attorney General Herman L. Ekern. In
the fifty-sixth annual report Of the
insurance department, Commissioner
Smith recommends that the attorney
general be required to devote his en-
tire time to the duties Of the office or
that special counsel be provided for
the insurance department.
"For the past two years" sayS the
report, made public by Mr.. Smith to-
day, "the insurance department has
been greatly handicapped in it's eff
forts to promote insurance principles
and better insurance practices in the
various branches of insurance by rea-
son of the lack of friendly and eflci-
emit cooperation from the attorney
generals department. A serious and
fundamental question of public policy
has arisen by reason Of the persist
ence of the present attorney general
in continuing his connections as OH
Ger, stakeholder, sctuary and attorney
for various insurance interest that
are subject to regulation through the
insurance department of the state.
The business of insurance is a high
ly competitive one, and close connec-
tion for many years with certain
branches or classes of insurance can
not fail to bias and prejudice the hui
man mind in favor of such classes
and against other classes.
Should Devote Entire Time.
"The legislature has recognized this
fact as far as the insurance depart
ment is concerned by providing that
such commissioner shall devote his
entire time to the duties of the office,
and shall not hold any position Of
trust or profit, engage in any occupa-
ton interfering with or inconsistent
with his duties, or serve on or under
any political committee or as manager
of any political campaign for any can
didate or party 1t is my recommen-
dation that this provision should be
extended to apply to the attorney gem
eral, his deputy and assistants, or in
the alternative, that special counsel
with coordinate powers and indie
pendent of the attorney generals de-
partment, be provided for the insur-
ance department"
A special committee of the state
senate during the last legislative ses-
I sion investigated charges of improper
activities brought against the attorney
general by the insurance commissions,
and reported that the charges were
unfounded. The differences between
the two officials arose over the insur-
ance code revision bill, which was OPP
posed by Mr.. Ekern. The bill was de-
feated in the legislature.
81 do not feel that the time and
effort put forth toward the revision
and the codifcation have been for
naught," says Commissioner Smith S
report. cit will serve as nucleus,
around which should be built code,
improved by the experience of the
next two years, to be presented to the
legislature"
Will Try Test Case.
A test case, affecting one particular
group OF insurers, soon will be insti-
tuted for the collection of back taxes
Mr.. Smith states.
81 have been interested not only in
seeing that the state receives the tax
der the law, but I aimed more gener-
ally to see that any taxes due, but not
paid, in former years, be recouped,
he says. "Quite a number of cases
have come to my notice where / felt
q wrong Interpretation had been APP
piled to the law or ruling. During
1924, there were roughly 100000 SO
collected. From the survey that l have
thus far had an opportunity to make
find that there are many more COM
panies subject to call for back taxes"
Some Insurance Troublesome.
Touching upon unauthorized insur-
ance, the commissioner says it has
been "more or less troublesome"
Whenever an inquiry regarding an
unauthorized company or society
comes to my notice l always call at
tention to the decision of our own SUI
preme court under which it was held
that an insurance contract made by
company or society in violation of our
laws will not be enforced in Wiscon-
SIM" he states.
"In order to hold down to mini
mum business done in this state by
unlicensed companies, was very much
interested in the passage of Bills
241S, and 242S. The first of the two
bills amends section 4575S of the stat
utes SO as TO provide for penalty for
the acceptance in this state of an ap-
plication for any kind of insurance on
the part Of an unauthorized insurer
l have had an occasion to prosecute
and collect fines a number of times
under the old section which referred
to fire insurance only,
"The second bill provides that il
the unauthorized company fails to pay
the tax on the business written, the
insured will be held to pay it together
with a fine, if not paid within sixty
days after its due date. Both bills
passed
"In connection with this problem il
should be borne in mind that the state
probably fails to receive large
amount of taxes which II otherwise
would, were the companies licensed
TAIK yyIvTII TAT