The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-05-28
IT'S NOT INSOLVENT.
CK4AIAS o. EoCITADLD INDEMNITY
ASSOCIATION OFFICEns,
Cause - Secretary - State Jenklns
Revekang tie Csouany's Laeenss
The Company says the Acti~n
Was Entirely UnwarsaAsea ~ the
CoAAttten - lta A1niRa.

The action Of Secretary Of StAte Jenkins.
- ex~o6!cio insurance commissioner, In
revokiHg the license ok the Equitable In
demnsty Association ID. according to the
statements Of the cfaceEs a the coma
pany. entirely unwarranted' by anything
In the condition Of the Affairs Of that oor-
porasioc.
The secretary and manager Of the ase,-
citation. D. +. AcNAnghten. was seen yes
terday by . Post-Intctiigencer reporter mt
the companys once in tbs Burke huili-
/ Ing. He gave the following as q state
ment OF the associations side Of the con-
troversy which resulted In tho action of
the insurance commissioner:
The company was organised Just thrrs
years ago. and since that time has dorse
an extensive and fairly profitable ousi-
mes. The objsct WAS TO insure its policy
holders against accident and sickness On
payment oc the specified premiums the
policy holders were guaranteed the pay
ment. according TO their respective
classes OF indemnity ranging from SIS a
week downward. during all the time
when they were actually disabled by ac-
cident or sickness from pursuing Their
occupations The promoter OF the asst'-
citation was the present secretary and
manager. Mr.. McNaughton: the president
was Isaac Waring. resident agent fer
Wells Fargo q Comapny's express, the
Great Northern Express Company and
other Kindred institutions
During Its three years existence the COM
pany has written some 7.oQo policies. has
paid out SIS, 4S3. 3 in loaees to policy hold
ers and according to the statement Of
the officers. has not today q dollar Of out
standing indebtedness save the current
claims. pending proof and unadjustesa In
none OF which has there been more than
the delay customary In all companies OF
the class.
When the law passed requiring COM
panies OF this class to have reserve OF
I'D. 0o In cash or securities the stockhold-
erS OF the company made to II their de-
mand notes for ses 900. The stockholders
were responsible men OF standing and
good for the amount. The insurance COM
missioner accepted these notes sur
fcient security. within the meaning cf
the law. and the license was issued.
On tie incoming OF the present admin
istration the association presented this
same notes to the secretary OK state for
his approval. on January q. and made
application for a renewal Of it's license.
The assistant SECRETARY. Mr.. Heisner. 6e-
INJURED somewhat and demanded affida-
Wits "a to the standing OF the signers OF
the notes. but these a!sidavits were not
given him. Notwithstanding this fact.
however, on March last after having
taken ample time for consideration, the
secretary OF state as insurance commits
sioner. issued the customary license for
one year, certifying that the company was
In solvent condition and had complied
with the laws OF the state. No question
was made at the time as to the suhhciency
OF the security and there never has been
from that time down to the present
demand made upon the company to FUR
nish additional security and no notifca-
ton that in the Judgment OF the insur-
ance commissioner the reserve fund OF the
company had been impaired or was In
sufficient
A difference OF opinion, however. arose
between Secretary McNaughton and As
sistant Commissioner Heifner as to the
custody OF the securities, the latter insist
ing that they should remain in the Office
OF the secretary OF state. There was quite
dispute over the matter and some little
feeling was displayed. Secretary Nc
Naughton insisted that the securities be-
longed to the insurance association. as a
part of its assets. and the company should
have them In It's possession. while Mr.
Heifner insisted on retaining them. The
assistant attorney-general of the state was
consulted. and decided that the secretary's
offfce could not retain custody OF the Sc
cur;ties after their sufficiency had been
passed upon. Heifney then said he would
surrender the notes if given a proper re-
ceipt Under the corporate seal. but added
that II the notesTwere demanded Re would
revoke the license of the association. Nc
Naughton persisted In his demand Heif-
ner drew up the form OF receipt which he
would require BEFORE surrenderins the Sc
curities. and McAaughton came to Seattle
to have the receipt signed In the form as
required. Within one hour of the time
after McNaughton left the secretary's Of
flee Heifner made application to the su-
perior court of Thurston county to have A
receiver appointed for the association. and
filed the notes with the papers In the case.
The point which the officers Of the COM
pany make Ia. how does II happen that Sc
curities which were held by the commits
sioner TO be ample on March are now
held to be insufficient. after q trivial dis
pute Is had over question OF law. Also.
how a license can be revoked peremptoriIy.
without notice, and without affordng the
company an opportunity to tender further
securities, II those on hand are held in
sufficient. Also. why q receiver Is neces-
ssry for a corporation which has no out
standing Indebtedness. and which has paid
all Of its debts and obligations to its stock
holders as fast as they have matured
As to the charge made by Assistant Com
missioner Heifner that the management Of
the company has been e1sravagant, Secre-
tary McNaughton says that the actual Of
fice expenses OF the company are but SIS
per month for salaries. only a bookkeeper
and stenographcr being employed, and
both on modest salaries. The only compen-
sation which any OF the officers Of tn.
company receive for their services IL In
the form OF commissions upon business
solicited by them. the officers themselves
all acting a. solicitors
The application for the appointment OF n
receiver will be heard In Olympia in the
superior court on Monday next Should
the court deny the application. the COM
pany viii take legal steps to compel thu
acting insurance commissioner to ..reyoke
his revocation" Of their license In the
meantime they propose TO continue TO d.,