The Topeka state journal., 1897-10-29
M'NALL TALKS
Comments on Affidavits Filed
by Insurance Companies
Charging That His Examina-
tiOns Are fHoIdups."
SAYS THEY ARE FALSE
QuintOn's Examination He
Says, Occupied a Week.
Examination by Home Commits
siOners Are 'Whitewash"
IN VERY MANY GASES.
Cites Figures to Show That
His Examinations
Have Unearthed Bogus Assets
of Vast Size.
QuintOn's Examination He
Says, Occupied a Week.
Examination by Home Commits
sIOners Are a ssWhiteWash'
IN VERY MANY CASES.
Cites Figures to Show That
His Examinations
Have Unearthed Bogus Assets
of Vast Size.

state superintendent OF insurance
Webb McNaH returned today from
making campaign speeches. He was
asked about the affidavits filed Mon
day in the federal court concerning the
alleged fake" examinations of insur-
ance companies which it was charged
he has been making. He said:
Insurance companies object to ex-
aminatiOns being made by commission
erS of other states because they are not
SO likely to 'WhiteWash' them as the in
surance commissioners of their own
state. Take the Travellers of Hartford
for instance-the last examination of
that company by their state depart
ment allowed them to put in their Col
OradO land company stocks at par and
the report went further and said that
the irrigation ditch properties of the
company were worth what they had
cost. Since that examination and re-
port the company has had to charge off
over S690,000 account of these same
ditch properties and last year the COM
pany had to charge up to profit and
loss over $4,000 on account of about
100000 worth of Colorado land compa-
ny stocks.
The reason that companies COM
plain about charges being eXorbitant
is that they are afraid something will
drop when thorough and straight eX-
animation is made of their affairs.
The charges of the examiners 1 sent
out were not eXorbitant and were
made to cover their railroad and hotel
expenses and for compensation for the
time employed in making the examina
tions, including time put in travelling
Speaking concerning the affidavit filed
in the federal court by the president OF
the National Fire Insurance company
of Hartford, claiming that E S. Quin-
ton of this city charged the company
1925 for TWO or three hours work in the
office at Hartford, Conn, conducting an
alleged examinatiOn'' of the cOmpany's 5
assets, Mr.. McNaII said:
THAT affidavit is false. Mr.. Quinton
ing that examination and received
what is justly due him, including the
necessary expenses in going to Hart
ford to make the examination.
Mr.. QuintOn spent three days at
work in the office checking up the as
| sets and then took the schedule of real
| estate holdings and examined the prop
| erty. He had to leave the office to do
| that Mortgages were examined, bonds
| were counted and checked up and a
| thorough investigation made. The af-
| fidavit is an amusing document and is
| a fair sample of the alleged integrity
and honesty which those companies
| talk about The examination and the
| charge which was made for it was
| wholly satisfactory to the officers of the
| company who settled with QuintOn. In
| stead of few moments work and a
| single visit to the office of the company,
| QuintOn worked more than a week in
| looking up and securing estimates on
| the property the company owns. This
| was done for the purpose of ascertain
| ing whether or not they had over-esti-
| mated the value of their assets. He
| also spent three days at work in the Of
| fee. He did not sit around on the pres
ident's upholstered furniture, either. He
was engaged in hard work"
Mr.. McNaU continued; I read in the
papers While [ have been out over the
state this week, amongst other things,
that Mr.. Fricke, superintendent of in
surance of Wisconsin, had made an ex-
parte affidavit. which was introduced in
the hearing before Judge Foster this
week, or submitted in evidence, con-
cerning the investigation by the Kan
sas department of the Milwaukee Me-
chanicS Insurance company. Mr..
Fricke with his corps of examiners in
investig eating the Milwaukee Mechanics
whiteWaShed the company in their re-
port, and no additional evidence is re
quired upon that proposition than the
item of $780, 900 upon a block in South
Milwaukee.
1T was conceded that the security
was not adequate security for the loan,
and just prior to the investigation be-
gun by the Wisconsin department the
company had marked upon its records
that the interest was paid in full on
the 3Oth day of June, 1897. The same
record showed the interest had been
paid in full which was due six months
before on June Goth, 1897. Going back
a year prior to the time the same rec
ord showed that upon this particular
loan the interest had been paid June
30th, 1897. In other words, the inter-
est had been in default for a long time
instead of having been paid as the re-
port of Mr.. F'ricke and the books of the
company pretended to show, and addi-
tional notes were given by the parties
upon security that was already mad
equate and said notes amount
ed to in excess of $4,000 all
marked paid and no new security
taken for these notes; that when the
report of the examiners from the Kan
sas department came in concerning this
matter copy of the report was not
only sent to Mr.. Fricke, superintendent
of insurance of Wisconsin. but also to
the company, and not a line was ever
received concerning the report from the
insurance department or from the Mil
waukee Mechanics Insurance company
and nothing was heard from them until
Mr. Fricke makes an exparte affidavit
to be used in court concerning matters
as to length of time of examination
that he could not possibly have had
any information concerning