Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-04-22
COMPANIES WILL ASK FOR FEDERAL
COURT TO ENJoIN HIM.
INTERESTING POINT RAISED.
IS LIFE INSURANCE INTERSTATE
COMMERCE:
A statute Discovered by Attorney
General Boyle Takes Away the
Authority Under Which Conn
missioner NIcNaII Has
Claimed to Act.

Topeka. kas., April 2l.-tSpeclal) 10
morrow morning the associated insurance
companies that have been shut out OF the
state by the actions and arbitrary rulings
of Insurance Commissioner McNaii will lille
q new suit in the federal court, raising
some interesting points in this famous liti-
CATION. The main question and contention
of the new suit is the claim that the busi-
ness of the companies, transacted from
their offices in the East, with the insured
parties in Kansas, is interstate commerce
and, as such, does not come within the rui-
irgs of the insurance commissioner. The
federal court will be asked to rule on that
question, and an injunction against the in
surance commissioner will be asked for,
pending the final decision. If the court
rules that the business of life insurance is
commerce, the whole matter will be closed
and the arbitrary action of the commits
sioner will fall fiat and cease at once. The
main question in the suit is set forth as fol-
lows:
Your complainant alleges that 1t. having
complied with all of the laws of the state
of Kansas and with the lawful rules of the
insurance department of said state, with
reference to doing business therein, which
are conditions precedent to the issuance of
such certificate, as aforesaid; that said
Webb McNall, superintendent of insurance
for the state of Kansas. had, and has, no
right. power or authority to refuse such
certificate upon the grounds and reasons
stated by him as aforesaid, but that he IS
lisregarding the law which governs his
department and defines his duties, and the
laws and constitution of the United States
and of the state of Kansas. and used his
official position without authority of law
and in violation of your complainants con-
Stitutonal right. 20 prevent your COM
plainant from carrying on its business in
the state of Kansas as aforesaid.
Your complainant alleges that the ac-
| ton of the said Webb McNall as aforesaid
is Il discrimination against your complain
ant. who is n citizen and resident of the
state of New York, in the United States
of America, and is an interference with the
rights of your complainant as such citizen
of the state of New York in carrying on
its business in the state of Kansas, and is
| an unfair and unequal treatment of your
complainant as against other life insur-
| ance companies and citizens doing a like
business in the state of Kansas, and is
contrary to the laws and constitution of
| the United States of America. and the laws
and will work an irreparable injury to your
| complainant, and that your complainant
has no adequate remedy at law"
The question as affecting life insurance
| has never been passed on in that form.
| The courts have held that fire insurance is
not an article of commerce. In fire insur-
ance the agent writes the policy and the
business is begun and closed at one place.
| 1t is different in life insurance. for policies
| are ISSUED only 1T tHe nome O1ce, tne va
rous agents being merely solicitors. who
| get an application and deliver the policy, if
| granted. Under these facts a number of
| attorneys have said the interstate COM
merce law would apply in the case.
People who are on the inside claim that
| Nc Nall and the administration are about
ready to lie down on the fight. The action
was taken by McNall under the authority
| of a decision of the supreme court of 1889
| that declared the insurance commissioner
had discretionary power.
session that
| decision was handed down. and ]. Ralph
Burton, then q senator. at once put through
| Il bill defining the power of the commission
| er and making him powerleSs to refuse q
| license when all legal conditions had been
| complied with. except on the grounds of
| insolvency.
The commissioner read the courts decis-
| ion, but not the proceedings of the legisla-
| ture. couple of days since Attorney Gen.
| eral Boyle found the action of the legiSa-
| ture, and since that time it has been ru-
| mored that the commissioner and his
| friends were about ready to quit the fight.
Edward 0'Rryan: of Chicago, counsel for
| the New York Life Insurance Company,
| who has managed the legal end of the fight
| in Kansas SO far. was at the Coates House
| last evening. When seen by Journal re-
| porter there he said the suit mentioned
/ above would be filed and would be pushed
| with much vigor. The company, he said,
| claimed it had done all things required by