Omaha daily bee., 1899-07-14
SEEKS TO FORCE The NATTER
Employe Of Insane Asylum Wants Insur.
anoe Policy Reinstated.
COMPANY DECLINES TO GRANT REQUEST
Applicant, who IL n Populist, En-
deavors TO Bring Political In
Huence to Bear to ACCOM-
plish His Desires

of a Lincoln attorney a lengthy communi-
cation OF a rather peculiar character com
planning of the action OF one of the big
eastern insurance companies in refusing 10
reinstate his policy, the last payment upon
which was made in 1896 This policy passed
out of the complainant's hands soon after
it was taken out, but he now seeks to have
It reinstated by offering to pay the pre-
miums that have accumulated and intimat-
ing to the insurance department that II
should be prohibited from doing business
in Nebraska II 1t refuses to do so. Ac-
cording to the terms OF the insurance con-
tract 1t is evident that the company cannot
be compelled to do this The complainant,
Frank ]. Bustard, who is a prominent popu-
list, is attempting to force the company
through tho insurance department or the
state by means Of strong political influence.
He has retained as attorney one OF w.
]. Bryans former law partners.
The policy in question was taken out by
Mr. Bustard in 1885, for which a premium
of $101 16 was to be paid annually for M
teen years, the policy to mature In l9oo.
The premiums were paid regularly until
1896, when Mr. Bustard's wife assigned the
policy to the First National bank of this
city to secure a personal loan of $50. This
transfer was done it is said, in the absence
The bank, of course, did not pay the pre-
miums as they became due and Mr.. Bus
tard alleges that he knew nothing of the
transfer of the policy until last fall. The
insurance company then refused to reinstate
the policy at it's full face value, giving credit
for the annual dividends. An offer to COM
promise was made but refused by Bustard.
1t is the custom Of the company to notify
all policy holders before their premiums be-
come due and it Is asserted that such no
tices were sent regularly to him.
The communication, or a copy of 1t, has
been forwarded to the home Office OF the
company In New York and the decision OF
the insurance commissioner will be with
held for several days to give 1t an oppor-
tunity to make a showing. The company
is one of the largest in the country and
does a big business in Nebraska. conse-
quently the case is one of more than ordin-
ary importance. No action has been COM
menced in court, Mr.. Bustard and his at
torney desiring the insurance department to
bear the entire responsibility OF acting in
the matter.
Cornell Suggests n Plan.
AS an accommodation to a fraternal in
surance company recently organized in this
state with headquarters at Ord, State Audi
1OT COTnell UdS SuBBtSleu d pidu, WhiShs IL
carried out, will be the means of permit
ting the company to do business on a IL
cense signed by himself and Deputy Com
missioner Bryant and for which only one
fee will be paid. This company, the Amer
ican Order OF Protection is ready and anx-
ious to take out license, but its officers are
uncertain as to whether they should recog-
nize the governors insurance department
or the auditors. This morning an officer
OF the company suggested that two licenses
be issued one by the auditor and the other
by Mr.. Bryant. This proposition did not
meet with the approval Of Auditor Cornell,
who offered to compromise by having only
one license, signed by both officers. Whether
the two insurance departments can reach
an agreement as to how the two names are
to be signed and other details is question
that will probably be decided in confer
ence between the auditor and the governors
deputy and 1t will be interesting to note
which of the two will take the initiative
steps.
This suggestion OF the auditors Is some
what along the line of a proposition made
by Mr.. Bryant soon after he was appointed
deputy insurance commissioner. 1t will be
remembered that several laws, passed after
the Weaver act during the last legislature,
made the auditor insurance commissioner.
These laws were introduced before the
Weaver law was passed and their provi-
sions relating to the office through which
the companies should secure their licenses
and agents permits were not changed to
at the provisions of that act. Deputy Com
missioner Bryant admits that there is some
question as to whether he has any juvisdic
tion over these companies and several days
before the Weaver act went into effect he
HuRReStn0 the auditor that all certi6-
Gates and licenses granted them be signed
both by himself and the auditor. AS to the
constitutionaity OF the Weaver act. Mr..
Bryant has never been undecided and his
proposition only related to certain classes
of companies
Numerous instances where agreements of
this kind have been entered into by state
officials have occurred during the past few
years. The act OF 1895, creating the State
Banking board was questioned by Auditor
Eugene Moore and until some of it's provi-
Bons were amended by the succeeding legis-
Iature all charters issued to new banks
were signed both by himself and the board
This was friendly agreement and 1t ter
minated as soon as the legislature changed
At to the satisfaction OF the auditor.
Deputy Commissioner Bryant has received
numerous letters from insurance companies
during the last few days expressing an in
tention of recognizing the legality of the
new insurance department. These are in
response to the circular letter explaining
the situation that was published and sent
TO the various companies by Mr., Bryant last
week
DishonorabIy Discharged.
On the recommendation OF the three COM
missioned officers OF Troop OF the Second
regiment Private George H. Woodward, sta
toned at Seward. was today dishonorably
discharged from the service OF the Nebraska
National guard. No reason is given for the
mans discharge other than 1t was for the
good of the service.
Adjutant General Barry today refused to
confirm the election OF Charles G. Stewart
as captain OF Company X OF the Second
regiment on the grounds that he was not a
member of the company when elected, the
rules OF the guard providing that officers
yhall be chosen from the ranks. The fol-
lowing orders were issued today by Adjutant
General Barry:
First-The resignation Of Captain Charles
Locke, Company b, Second regiment, Ne
braska National Guard, is hereby accepted,
TO take effect from the date OF this order.