The Topeka state journal., 1897-09-27
From Interfering With the Mu-
tual of New YORK.
MUST ISSUE LICENSE
To That Company to Do Busi-
ness in Kansas.
McNall Says Cup to Time of Co.
ing to Press
He Has Not Issued the License
Commanded.

Judge John F. Williams of the fed
eral court this morning administered
another blow to Insurance Commission
er Webb NIcNal when he granted a
permanent injunction to prevent him
from interfering with the business of
the Mutual Life Insurance company of
New York. He also directs the COM
missioner of insurance to grant the
company a license to do business in
Kansas under the provisions of the
law.
This is one of the numerous quarrels
between the insurance commissioner
and the insurance companies which do
business in Kansas. A suit was filed by
the attorney general to prevent the
company from continuing to do busi-
ness in Kansas.
Then the insurance company went
before Judge Williams and asked for
an injunction against both Commits
sioner McNan and the attorney gener-
al The decision today is sweeping in
its effect
Judge Williams holds that Commis-
siOner McNaH must issue a license
when the showing required by law is
made and that he cannot arbitrarily
refuse to grant a license.
The controversy with the Mutual
Life arose from the famous Hillmon
case. McNan wrote to the general
agent refusing to accept the license fee
on the ground that the company had
refused to pay Mrs. Hillmon the in
surance due on account of her hus-
bands death. This case has been in
the courts for Is years and it is still un-
: settled.
Judge Williams incorporates this let
ter in his opinion, and in speaking of
the position of the SnnRrinfRndRnf
This action of the superintendent in
this case, refusing to grant license to
transact business in the state to a COM
pany that he himself admits has COM
piled with the laws of the state for the
reason contained in his letter to the
agent of the insurance company to
state it very mildly, is arbitrary, and
is an assumption of authority by a
ministerial officer that is startling
The injunction applies to Attorney
General Boyle except in one particular.
1t does not prevent him from bringing
quo warranto proceedings to test the
right of the insurance company to do
business in the state, but it does forbid
him from bringing any other kind of
an action.
In closing his opinion Judge Williams
says:
4 may add in conclusion that the
company having in the judgment of the
court complied with all the require
ments of the law of the state, having
demonstrated to the entire satisfaction
is solvent. tendeded him the fees re-
quired to be paid before a license could
be obtained, it has done all it could do
or the law required it to do, and the ar
bitrary refusal of the superintendent of
insurance to grant it Il license does not
in my judgment prevent it transacting
business in the state. and consequent
ly it should not be interfered with
prevented from transacting such busi-
ness, for if the superintendent of in
surance is without discretion to refuse
pliance with the requirements of
the laws of the state; it fol-
lows that it has so complied with
the laws in all respects, such COM
pliance has the full force and effect of
a license to transact business. for it has
done all it was required to do and all
that it could do
David Overmyer, attorney for Super
intendent McNan, gave notice that the
case will be appealed to the supreme
court.