Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-07-26
TO DO SOME PROBING.
EASTERN INSURANCE COMPANIES TO
BE INVESTIGATED.
ONE OF M'NALL'S SCHEMES.
OBJECT Is To ASCERTAIN COMPA-
MES FINANCIAL STATUS.
Several Western superintendentsw VIII
Cooperate - Companies Having
Their Headquarters in other
States Must Pay
Special Tax.
ONE OF M'NALL'S SCHEMES.

Topeka. Kas., July 25.-Cspecial.) A move
ment is on foot among the insurance su-
perintendents Of the Western states to
Join hands in a wholesale investigation of
the financial condition of the various
Eastern fire and life insurance companies.
Considerable correspondence has already
passed between the different departments
in the West and it is said that things have
progressed to that point where the investi-
cation is assured. 1t will be instituted late
this fall.
Superintendent McNaIl. Of the Kansas
insurance department. is one of the prime
movers and it was through him that the
information became public to-day. A re-
port gained currency few days ago that
McNall proposed to make an investigation
of his own accord. This he denied and, in
order 10 make the denial emphatic he de-
clared that an investigation of far more
sweeping character was being contem-
plated and that it would be participated
I'm by at least seven states and probably
ten or twelve. In a general way he inti-
mated that all of the states west of the
Mississippi and continental divide would
participate with the possible exception of
two. He refused to tell the two that had
declined to go into the arrangement, but
II is suspected that they are Iowa and one
Of the Dakotas. Then he said that prob
ably one state east of the Mississippi would
join. and, from the tenor of his remarks,
ii IS almost certain that he referred to
Illinois. He gave as an excuse for not
talking more emphaticaly about the mat
ter that while some of the states had ex-
pressed a willingness to join a movement
of that kind, yet they had not given final
answers TO his request for cooperation.
AS soon as il is ascertained how many
states will participate, then the details
will be arranged. This will take some
time.
Those behind the scheme want to get
everything in shape before they swoop
down on the companies Of the East.
The plan contemplated will cost the vari-
Gus states participating considerable
money. Each state viii be represented by
its insurance superintendent, clerk and
an expert accountant and the inVestiga-
tion will last from three TO four months
The assets Of each company will be inves-
tigatcd TN detail. This will require large
amount of work as well as a vast deal OF
The objects Of the Investigation are two
fold. One is for the protection of Western
policy holders and the other is to try and
find some rOttenncss in the management
OF those big concerns. A large amount of
vituperation heaped upon the West and
Kansas in particular. so Mr.. McNaH saws
comes from those Eastern insurance com
panes. They charge the Western people
with being rcpudiators and dishonest and
McNall is of the opinion that in some in
stances Il is the cry Of stop thief The
investigation. he says, will be a benefit 10
the policy holders in general. and also to
those companies who are financially solid
He says 1t will be tough, though. on those
companies running on their nerve il there
are any. He says companies that are an
right can have no objections TO the investi-
cation. Those that are In wretChPd fiuan-
cial condition might object. but that would
give their hands away and the Insurance
departments would take immediate stems
to protect policy holders against tham bv
barring them from doing any more busi-
ness. An investigation on small scale has
been made recently in the West. Securities
which some of the companies hold out here
and put in as assets are said to be inflated
II was this discovery that suggested the
idea of a sweeping investigation.