The $35 Fee That Became $335: Insurance Commissioner Schively's Sliding Scale

Olympia, Wash., June 8. — According to George Lee, assistant attorney general, who has been working with the investigating committee, what J. H. Schively, state insurance commissioner, referred to as his "sliding scale" of fees charged newly organized companies, will be the principal fact against him in the impeachment proceedings at the special session of the legislature.

The system alleged to be in vogue in the state insurance commissioner's office was to charge insurance companies as much as they would stand for. A fee of $35 is required by the state from companies seeking admission to do business, but it is alleged that Schively charged anywhere from $35 to $335, the latter rate having been wrung from a company at least once. Of this he would turn over to the state only the legal fee, the rest being diverted to his own purse.

It is stated the committee has heard from 75 out of about 300 insurance companies with whom Schively conducted business, and from these they found that he had collected $8,000 in extortionate fees. Some would not pay all he asked, and from these he took what he could get. Correspondence, cancelled checks and other evidence will be turned over to Gov. Hay by the investigating committee as proof of Schively's extortion.