The Topeka state journal., 1897-09-22
One Insurance Company Objects
to Being Investigated.
Travellers of Hartford ~DemurS
to Being Looked Into.
SOME LIVELY LETTERS
Between Webb McNalI and the
Company's President.
McNall Points Out His Reasons
for an Examination.

Webb McNan, superintendent of in
surance today notified ]. w. Patterson,
president of the Travellers Insurance
company of Hartford, Conn, that un-
less the company submits to an exami-
nation of it's affairs by the Kansas de-
partment early in October, its license
to do business in this state will be re-
Voked.
This notification has grown out of a
controversy between the two officials.
The superintendent in a letter to Mr..
Patterson which the latter gave out for
publication in tthe eastern insurance
press said:
Upon an investigation of your assets
reported to the department 1 find that
the value placed upon the same so far
as your real estate holdings are con-
cerned, is entirely too large. This leads
me to believe that it is possible that
your assets mentioned in other states
and your other securities reported to
this department, may occupy the same
position as to their values. Believing
this, it is my duty of this department
to proceed to make an investigation OF
the financial condition of the Travellers
Insurance company in the near future" !"
To this communication Mr.. Batter
son replied suggesting that the ex-
animation would be made at the ex-
penSe of and solely for the benefit of
the state of Kansas he would not OBJ
ject but if the department proposed to
make the company foot the bill the
matter would be referred to the board
of directors for such action as they
deemed proper, but with intimatiOn
that the directors permission would be
necessary before Mr. McNan could pro-
ceed.
Several letters have been exchanged
in all of which the company has denied
Mr.. McNalPS right to conduct such an
examination, he maintaining that he
would do so and at such time as he
deemed proper. Mr.. McNall took his
pen in hand" today and inscribed the
of. purposes to Mr.. Batterson:
Ct desire to call your attention to
schedule A of your annual statement,
filed in this department for the year
ending December 81, 1896, which on
page &c shows the total cost value of
the real estate owned by your company
to be $1,773, ,879.37, and the market value
of real estate over cost amounts to
$179, 9,877.72. 1 also notice on the same
page in your fOOtingS under the head
of Rental the amount for your entire
real estate holdings is 71.123, and your
expense upon said real estate $86, ,923. I
assume that is for the year 1894. In
1895 your rentals amounted to SCI 113
and your expenses to $S5,260. For the
year 1896 you received a rental from
this vast volume Of real estate $62, ,062
and your expenses amounted to $82, ,645.
Summed up the above figures make a
magnificent showing for your insur-
ance company and your values of ST.
953, 756. 09, which is required to earn in
tereSt at 4 per cent per annum as a
company. Your rentals during the last
three years amount to $196, ,29S and your
expenses upon the same amount to
$257. .SS8, making a deficit of SCI. $50.
don't know just what rate of interest
this real estate is earning but 1 am
satisfied of one thing, and that is that
it is not earning per cent. These
statements I Gull from your annual re-
port that you filed here and say you
are willing to stand upon.
My judgment is that some things
will develop when an investigation
takes place, providing your board of di-
rectors SO DEGREES and if they decree
otherwise, from that date your COM
pany will cease doing business in this
state, and it makes no difference to this
department how your board of direc-
tors decides.
You say: We are trying hard to re-
coup some of our losses on Kansas in
vestmentS by rigid economy, and new
wheat 1 would suggest that consider
ing the present valuation of some of
your real estate holdings in Kansas,
and especially your city property, it
will take you long time to recoup up
on wheat. They do not grow wheat in
| the cities of Kansas to any alarming