The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-10-05
KICKS HARD.
The Travellers Insurance Com
pany of Hartford, Conn.,.
Fights Bitterly Against Exam
inatiOn of Its Books,
WANTS AN INJUNCTION
To Prevent Supt. McNalI From
Investigating.
Two Years Ago It Made the
Same Fight
Against North Dakota and
Texas Superintendents.
WEBB M'NALL TALKS.
Says Company Fears to Have
Light Thrown on 1t.
One-FOurth of It's Real Estate
Holdings Are in Kansas.

Webb McNau has been enjoined
again, this time by the Travellers In
surance company of Hartford, Conn,
which is making an effort to prevent
the superintendent of insurance from
making an examination of the books,
accounts and assets of the company at
the cOmpany's expense.
The order issued by judge Foster late
yesterday afternoon was temporary
and is returnable October Is. At that
time final argument will be had.
In examining the cOmpany's an
nuaI report some weeks ago Mr.. McNall
discovered what he believes to be an
generalization of real estate owned in
Kansas. Upon this discovery ne based
his suspicion that perhaps other assets
held by the company were OVer-est-
mated. To satisfy the department the
superintendent determined to make an
Patterson asserted should not be made
at the cOmpany'S expense and an
nOunced that McNau would be prevent
ed from taking such action McNall
replied to Mr.. Patterson that the eX-
animation would take place or the Ii
cense of the company to do business
in Kansas would be revoked.
The application for an Injunction
asks that McNau be permanently en-
Joined from doing either.
when an insurance company of any
kind goes into court to prevent an ex-
animation of its assets it is primat facie
evidence that it is rotten" said Webb
McNaH today.
"Out of nearly two million dollars in
real estate holdings, owned by the
Travellers of Hartford, over $3.50 900 Of
the same are in Kansas. Our inSur-
ance law provides when an insurance
commissioner questions the truthful
ness or correctness of an annual report
he is directed to proceed with an eX-
animation such as I proposed to direct
against the Travellers.
The action of the company in seek
Jig an injunction in my opinion, will fail
upon the final hearing October IS.
This proceeding is perhaps the most
unusual on record in this state" con-
tinued Mr.. McNan -Four years ago
the New York Life asked Superintend-
ent Snider of Kansas, also the superin-
tendentS of insurance in Missouri, Tex
as, Ohio, Kentucky, Massachusetts and
two other states, to make jointly an
official examination of the affairs of
the company. In this instance the
company was very glad to have the re-
port showing the assets to be in good
condition from the superintendents.
The Kansas department has just
completed an examination of the affairs
of the Kansas Mutual, which was sOlic-
tied by the company, and was made at
the request of the officers of that com
pany. 1t is a solvent institution and
the directors were not afraid to have
their assets examined, and every dollar
of their assets is deposited with the
state treasurer of Kansas.
''One year ago the insurance cOmmiS-
sioners from Texas and North Dakota
attempted to investigate the Travellers
Insurance company, and the condition
at that time must have been exactly
the same as it is now. The president
closed the doors in the face of the
| commissioners and refused to permit
them to investigate the affairs of the
company.
Amy company that is solvent courts
an examination by any state insurance
department, the same as any bank that
is solvent courts an investigation by
a bank examiner. The president of the
Travellers is in this position. He could
not say whether the board of directors
would permit an investigation or not.
He said that they did not meet until
the first Monday in October, and that
they would then pass upon the prOpOs
tiOn to permit the examination to take
place. The president of the company
without waiting for the board to take
action, on October 4 engages counsel
and has suit brought. 1t is very evil
dent that this board did not intend to
permit an examination and that the
proceedings on the part of the president
were merely a sUbterfuge. If the pres
ident had told the truth-and had not
lied about this matter-the company
would have been shut out of the state
long ago.
Il insist that if this company did not
fear the result of the examination I
proposed, there would have been no OBJ
jectionS offered