The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-03-10
To REMOVE
M NALL.
Formal Charges Against In
surance Superintendent.
Charges Are Written by Rep
resentative Attorneys
OF INSURANCE cos.
And Filed by Arthur Capper
With the Governor.
OF INSURANCE cos.

Governor Stanley has taken steps to
secure the removal of Webb McNau
from the office of superintendent of in
surance. Arthur CRpper signed the
charges which have been filed with the
governor. The document was written
by James A. Troutman, assisted by
Judge Horton and D. r. Hite. Judge
Horton is taking an active part in the
fight against McNall, having written the
investigation resolutions which Repre-
sentative McKeever didn't introduce in
the legislature.
Governor Stanley will sit as judge of
the proceedings, which will open Sat
charges are very lengthy, the principal
issue being made on McNal1s eXamina-
ton of eastern insurance companies.
The document which Mr.. Capper has
filed with the governor, follows:
Hon w. f. Stanley, Governor of the
State of Kansas.
In the matter of the application for the
removal of Webb McNaI from the
Office of superintendent of insurance.
Your petitioner respectfully represents
to your eXcellency that Webb McNall is
now and has been for more than two
years last past superintendent of insur-
ance of the state of Kansas; that as
such superintendent of insurance the
said Webb McNaI has been derelict in
the discharge of his duties in many
respects as will hereinafter more fully
appear; that he has acted corruptly in
authorizing certain insurance companies
to transact business in the state, and in
refusing other companies such authori-
ty; that he has both directly and in
directly received gifts, gratuities and
compensation, from insurance COM
panies, other than allowed by law: that
said superintendent through his author
lied agents and attorneys has levied
upon and extorted from insurance COM
panies doing business, or seeking to do
business, within the state, large sums of
money in violation of the law, and has
demanded and received compensation
for doing certain official acts, which was
his duty to do or refuse to do, without
remuneration other than the annual
salary paid him by the state of Kansas;
that he has corruptly used his position
as such superintendent to haraSS, OPP
press and intimidate insurance COM
panies doing business. or seeking to do
business, within the state, and has, by
such oppression and intimidation, in
some cases, prevented a fair and rea-
sOnable adjudication of legitimate con-
troverSieS in the courts of the state;
that he has collected exorbitant fees for
pretended examinations of the financial
condition and standing of certain in
surance companies and has appropriated
such fees for his own use and benefit
in violation of law, and has made no
report of collections and has failed and
refused to turn the same into the treas
ury of the state.
For more specific recital of the fore
going charges your petitioner directs
attention to the following details:
First-In 1879, certain actions were
commenced in the circuit court of the
United States for the district of Kansas
by one Saliie E. Hillmon to recover
from several defendant insurance COM
panfes upon policies of insurance of the
death of the said plaintiff, which claims
were disputed by the defendant COM
panies.
These actions had been upon the
docket of said court for over IS years.
and have been tried five times and the
nv five
judges. In one trial the plaintiff obtain
ed a verdict which was reversed by the
supreme court of the United States, and
there was a disagreement of the jury
in the other four trials.
Notwithstanding the history of this
litigation and in disregard of the rights
of the defendant companies, the said
McNaH refused to grant said companies
certificates to do business in the state
for the year 1897. assigning as a reason
for a refusal the failure of said COM
panies to pay the HiIlmon claims
That said McNan admitted the SOL
vency of said companies, but refused
them permission to do business for no
other reasons than to coerce them into
the payment of said Hillmon claims
which had been legitimately contested
in the courts for IS years.
Your petitioner further alleges that
conspiracy was entered into by said
McNal and certain agents and attor-
neys of the New York Life Insurance
company. by which a settlement was
made of the Hillmon claim against that
company, and its license to do business
in the state was restored; that only a
portion of the amount claimed was
paid most of which was divided among
the parties to the conspiracy, while the
plaintiff the real party in interest, re-
ceived practically nothing. The petit
toner alleges that the said superintend-
ent used his official position and power
to bring a bout this settlement, with full
knowledge of the corrupt and fraudu-
lent character of the same, and of the
facts and circumstances connected
Herewith.
Second-That the Phoenix Fire Insur-
ance company of Brooklyn, New York,
during the year 1896 complied with the
statutes of the state of Kansas and
with all of the rules and requirement
| of the department of insurance and re-
| ceiyed from said department. through
| its superintendent, Webb McNall, auth
| GRITTY to do business in the state of
| Kansas for the year ending February
| 2S 1899; that without just cause and
| without authority of law, said Webb
| McNall in September. 1898, attempted to
revoke the license of one, G. A Bailey
state agent of said company, to do bus
! mess in the state; that an action to
| restrain said superintendent from in
| terfering with the lawful business of
| said company was duly filed in the Uni
| ted States circuit court on October. 1898
| that on or about March 1, 1899, the said
| superintendent demanded of said Phoe-
! nix Insurance company the dismissal of
| said action and the payment of $500 at
| torneys' fees as a condition upon which
| a license would be granted to said COM
| pany to do business in the state for the
| current insurance year; that the de-
|