Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-03-18
M'NALLCALLEDDOWN
SUMMONED TO SHOW WHY HE Is
NoTIN CONTEMPT OF COURT.
INSURANCE COMPANIES. ACT.
APPLY TO JUDGE FOSTER FOR A
TEMPORARY IsIusCTIoS.
Alleged That He Is UnIastfaiiS Inter
ferinG in the HitInson Insurance
Case Application Granted
and the Hearing Set
for April. 5.
INSURANCE COMPANIES ACT.

case - appElcatlons 7efinteu
and the Hearing Set
for April 8.
Topeka. Kas.. March I7.-lSpeciai5 Judge
C. c. Foster. of the United States circuit
court. to-day issued an order citing State
Insurance Commissioner Webb McNall 10
appear before him and show cause why he
IS not in contempt of court for revoktnS
the licenses of the three insurance COM
panies interested in the Hillnon case. An
order was also granted enjoining hIcNall
from interfering in any way with the busi-
hess of these companies. The hearing was
bet for April ).
These orders were granted in a supple
Alental proceeding Instituted to-day in the
lIillmon case, now pending, IN which the
New York Life Insurance Company, the
Mutual Life Insurance Company of New
York. and the Connecticut Mutual Life In
Eurance Company are defendants.
In the petition presented to-day, the de-
PENDANTS attorneys claim that the arbi-
trary action of the insurance commissioner
in shutting them out Of Kansas usurped
the power of the federal court and virtu-
ally prohibited them the right of trial by
jury. in this celebrated case. The petition
follows:
Petition of the Companies.
Come now the said three defendants:
the Mutual Life Insurance Company, OF
New York: the New York Life Insurance
Company. and the Connecticut Mutual Life
Insurance Company, of Hartford, Conn.
and show TO this court that the above en-
titled cases have been duly consolidated
10y order of this court: that the said
cases have been five times tried by jury.
without result. and stiII wait another
trial, owing to the disagreement of the
last jury. and are pending for hearing at
the coming June term, to which time they
have been continued by consent of parties.
and awaiting trial in this court. where they
have been for nearly seventeen years.
The Hon. Webb McNaIl is, and has been
since February !. 1897, the duly appointed,
qualified and acting superintendent of in
Surance of the state of Kansas, having
his office in the state capitol in the city
of Topeka. Shawnee county. kas., within
"a short distance of the federal court build
ing. where the said consolidated case was
last tried.
Your petitioners have each been doing
business in Kansas for more than twenty
years last past having spent large sums
of money in advertising and placing agen-
CleS and selecting agents, and have written
large number of policies in said state;
and there are outstanding now in the state
of Kansas more than 10000 policies written
by the petitioners, insuring the lives or
citizens of the state of Kansas. in a sum
exceeding S20,010.000. Your petitioners have
heretofore for more than twenty years last
past. carefully complied with all of the
provisions imposed by law and by the de-
partment of insurance upon life insurance
companies doing business in the state of
Kansas, and have heretofore made all the
reports and filed all the statements, paid
all OF the fees and paid all of the taxes
and done all other acts required by the laws
OF kansas, and there have been issued reg
ularly for more than twenty years last past
annual licenses TO them to do business in
the state of Kansas, dated March lst of
each year; and il has been customary for
each OF these defendants to expect TO re-
ceive. and to receive. upon the 1st of March
OF each year license to do business in
Kansas. because of the fact that your pe-
ttioners have at all times complied with
all the requirements of the law in that re-
speCt, and IL all other respects, as afore-
said.
All Conditions Complied With.
Your petitioners further say that on
March ], 1897, they had complied with all
OF licenses upon March /, 1897: that is TO
say. they had each filed COPY of It's
charter and had filed annual and supple
mental statements and had filed all the
Eecessary afhdavits and papers and GER
tiiscates required by law and had rendered
and had done all things and everything
necessary TO entitle them to licenses to do
business in the state of Kansas and upon
the Ist of March. 1887. there had been pre-
pared in the office of the superintendent of
insurance of the state of Kansas. licenses
business in the state of Kansas. but the
same were not delivered upon the 1st of
upon the Cd of March. 1857. these petitioners
each received letter from the superin-
tendent of insurance of the state of Kan
sas: copies of which letters are hereto at
tached. marked Exhibits A, 3 and c. and
make a part hereof. That each of the
said letters contained the following state
. i am satisfied that your company has
not dealt fairly with the plaintiff. Mrs.
Sallie Z. Hillmon. in refusing to pay the
neath loss and in the litigation of the same
pertaining TO her deceased husband.
Hence this department refuses to issue
n license TO do business in this
state for the ensuing year;
Your petitioners say that the said Nc
Nall admits that the companies have COM
piled with all the necessary conditions
precedent TO the issuance of licenses. and
that the companies have such capital and
are of such size and condition, and have
their assets invested in such a way as to
entitle them TO do business in Kansas. and
The sole and only ground of refusal upon
which the said insurance superintendent
bases his action Is that the said companies
are resisting in this court the payment of
the said claim sued upon by Mrs. Hillmon.
The Czar-Likc McNuII.
Your petitioners alIege that since the
lst of March, 1897, they have applied to the
said superintendent of insurance to know
whether any statement had been filed in
his office by Mrs Sallie L. Hillmon or her
attorneys. setting forth any charges
against these petitioners, and have asked
the said superintendent concerning the
same. but the said McNau refuses to say
whether or not any charges or claims or
complaints have been filed in his office as
against these petitioners. and refuses 10
give your petitioners any light or Informal
tion whatever upon that subject. and in
reply TO the application of your petitioners
in that regard. he, the said superintendent
of insurance. has replied to the request of
your petitioners as follows: IF anybody
asks you about il. tell them that You don Z
know So. in pursuance of the request of
the said superintendent OF insurance, these
petitioners inform your honorable court
that they do not know whether any charges
or claims have been filed in the said office
of the superintendent of insurance against
these petitioners. but do say that the said
superintendent of insurance gave them no
warning. nor word. and no hearing: and
without any intimation whatever. refused
and refuses to deliver the licenses of these
companies and threatens that If Your ne
Iitioners proceed with their business in the
state Of Kansas that he Will prosecute your
petitioners both Ciyiily and criminally and
will arrest their agents and mprison them
and compel these petitioners TO refrain
from doing any life insurance business in
the state of Kansas.
Your petitioners further show that TO
pay of the claims involved In said CONSOLE
dated case now pending. together with the
costs and interest. would take more than
$1,000. but that on the other hand il would
barred from doing business in the state OF
Kansas.
Attempted Coercion.
And your petitioners say that the arhi-
trary action Of the said superintendent of
Insurance is intended 10 operate as 4 pres
sure upon these petitioners 10 compel them
10 forego their rights as suitorS in your
itlZating the claims which they have been
defending for nearly seventeen years. and
VIII Operate to drive them out from the
protection Of this court and to pay an un-
u LII, L.