Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-07-31
SAYS KANSAS INSURANCE LAWS ARE
BEING VIOLATED.
A KANSAS, CITY, NO., TRUST"
MUCH BUSINESS DONE THROUGH
DUMMY, AGENCIES.
4 Third of the Fire Insurance of Kan
saS Written by Unlicensed Com
Panies-Superinten Nc
Nall to Take Action I'M
mediateIy.

Topeka. Kas.. July 3O.-ISpeCial) Special
Commissioner ID. .. McCray- OF the STATE
insurance department. to-day filed a report
Of his investigation into the methods oil lhe
Insurance companies doing business IN the
two Kansas Citys. Superintendent McNal
will take action Immediately in accordance
with the recommendations made
The report Of McCray covers seven type
written pages In the first place. he says
that the agents OF the insurance com
NAMES doing business in Kansas city, Mo.
have the strongest kind OF trust that
one third Of the insurance written on han
sas property is written by companies not
authorized 10 do business in this state ana
that three-fourths Of the unauthorized busi-
ross Is written in Kansas City. Mo. The
unlawful business. he says. extends 10
Kansas City. Kas., Lawrence, Olathe' Ut
tava and other towns in Eastern Kansas
and il extends 10 all kinds of risks. lie
saws these Kansas towns are Nlslted u!
regular agents of companies not licensed
10 do business here at all. The under
ground insurance extends not only TO pack
ing houses, but also to lumber yards. mills
elevators, manufacturing and mercantiie
establishments throughout the entire ter
ritory Of Eastern Kansas.
The special commissioner then takes up
the dummy agents in Kansas CITY. kas'
and shows how they are in coluslon Win
Missouri agents to evade the Kansas law.
The policies on Kansas property are al
written in Kansas city. NO. ne says anu
are then sent over 10 Kansas City. kas.. TO
no countersigned by the dummy agent.
Then they are returned to Missouri and in
snected bv Inspector Fetter Of the trust.
NcCray saws that Jenkins & Parsons NJ.
G. Sammis and Ivy Tood are three dunn
my agents. They get per cent for act
ing as such. while the agents across the
lire receive 10 per cent.
All the Kansas City agents doing Kansas
business refused al first to let McCray see
their hooks. and several companies dehed
him absolutely. Simpson a Groves ana
NIuehlschuster are two firms that would
not let him take a peep at tneIr BOOKS I'M
der any circumstance.
McCrav further states that the members
Of the trust have a secret system Of putting
ssGb other "on" " and that thirty minutes
after he made his business known every ~
sIIrancp agent in the city knew II ana ldid
pIans TO prevent him from getting the de-
sired information. He said the trust agree
meut was so binding that z member was
tried by a court formed by the memheTs 1OT
| the least infraction of the rules, and heaN-
ilv fined. The trial judge OF me trust
court, he says. is an eX-mayor OF haHSdS
CITY Two present members OF the MIS-
souri, legislature from Kansas city Delone
| to the combine and one fixes the rates on
risks in Western Missouri In Kansas the
trust still uses the Clarkson rate book.
| McCray reports that at least nifty COM
NAMES not licensed by the Kansas depart
ment are writing Kansas business through
the trust Among the Unauthorized com
panies named are: The Scottish Union Ma
| fioual the North German. the Detroit Fire
| and Marine the Rhode Island CnderWrlt'
| ers' fine Svea Of Sweden, the Mercantile
| Fire and Marine of New York, the Ameri-
| can of New York. the Eagle Fire Company
| ana the Farragut of New York. The big
| packing houses carry large amount OF IN
| surance I'm companies not licensed IN TINS
| state At Olathe. the Cooperative Associa'
| ton carries insurance in ten different com
| panies. all of which are unlicensed.
| The special commissioner recommends
| that the unauthorized companies be driver
| out Of Kansas, in justice to the companie:
| that faithfully abide by the laws OF th'
| state and paw their license fees.
| This investigation was Instituted upor
| complaint of some legitimate insurance
| agents Of Kansas City. Kas., who claimed
| that by reason of the business methods o.
| the trust and the dummy system OF agen
| cies carried on by unauthorized compd
| nies their business was injured.
| Superintendent McNall will act on tn
| suggestions and move against the trus
| and unauthorized companies at once.