The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-03-10

Horton and Hite affidavits before you
at this time; that they have all been
copied and placed in your possession.
Do you propose to base your decision in
this matter upon exparte affidavitS
made by insurance companies them
selves saying the examinations were
superficial and perfunctory? When the
evidence upon their part is all in will
you have any knowledge upon which
you may base a, fair and impartial de-
ciSiOn? This department is labOring
under the impression that 1 know more
about this department and about the
evidence and information l send exam
liners after and obtain in return, and
the beneficial effects of such eXamina-
lions, than does Mr.. Horton or Mr.
Hite, or even than the insurance COM
panies themselves. To illustrate: One
insurance company authorized to do
business in Kansas failed to report any
fireman's fund tax due to the city of
Topeka in 1897. In running the matter
down 1 found that the aforesaid COM
panv owed and had failed to report
over 1853. OF course, making an exam
inatiOn of the company, governor, and
running the matter down and compel
ling it to pay was all superficial and
perfunctory because Horton & Hite and
Arthur Capper have said so. realize
that in times past in order for the SUI
perintendent to make an examination
of an insurance company that was gilt
edged the same had to be done accord
ing to the approved methods of the in
surance companies and upon their in
N1ldllOII, Oul we nave d law III tulS
state providing for the examination of
the books of the county treasurer, and
it is believed the best results are OBJ
tanned by not notifying the county
treasurer when an examination is going
to take place. / think that the best re-
suits can be arrived at in the examin-
alton of insurance companies in not let
ting them know, in some cases, when
the examination will take place, and es-
pecially where certain information is
desired; but in other cases where the
assets of the company have been pad
ded and stuffed as they were in the case
of the Travellers Insurance company it
is a good plan to let the company know
that you propose to investigate.
1 suppose that the eighteen companies
mentioned in the complaint of Arthur
Capper" all file an affidavit in your office
be made by this department of the re-
spectiVe companies, We're superficial and
or the policy holders Let me ask you.
as a lawyer if you anticipate that they
go further. and say that the examina lions
are of no value to the companies. In some
statement is true. I have in mind a
case where examiners from this office
pany in NeW YORK City ana found in eR
GeS Of 5000 Of this b bends @i by ny
der to o5t9 hae m9ngy to nv pay 4
company but not earned, 50 that the com
same without borrowing it. When the
not believe and does not believe al this
time that the examination was of any
benefit to the company, and CON
slider that it was superficial and
I would call your attention to an
other matter that my examiners came
across while in the east, and that is
that during the campaign Of 1896
nominee upon the Republican ticket in
this state was in the east laboring in
the interests of the party. He called
upon various insurance companies and
made superficial and perfunctOry'' ex-
aminatfons and collected for campaign
purposes about $500 and brought it
back to Kansas. 1 suppose that this
was in order to see that a fair and i'm
partial election was held in this state.
Examinations of this character have
not been made during my administra-
ton.
now address you as a lawyer. was
appointed by Hon. John w. Leedy, gov
ernOr of Kansas, to the position of SUI
perintendent of insurance of this state.
I was confirmed in open session of the
senate, every Republican, POpuliSt and
Democrat in the senate voting for me.
My record in this state has been before
the governor who appointed me every
single week since 1 was appointed and
took charge of the office and up until
the time he went out of office. Parties
at times desired a conference with Gov
ernOr Leedy and brought charges
against me, alleging what they styled
Oppression in office" He informed the
parties that he has made an examina-
! ton and was satisfied that there was
nothing in the charges and that what
| the department was doing was salts
! factory to him. He was in the cam
| paign about three or four months last
| fall. and he stated to the people of this
| state from the rOStrum that my work
! had been satisfactory to him. Every
| charge made against me in your COM
| plant came to his attention except the
! one as to the Phoenix Insurance COM
pany, and he found them to be without
| foundation, but now 1 would infer from
| the twentY-four hours notice that you
have given me to appear at your office
| that you are going back and examine
| as to the conduct of the officers under
| Mr.. Leedy's administration. 1 suppose
! you do this lawyer.
! There is no question in my mind but
| what you have power to do anything
/ you see fit as governor of this state
| but in order to show you the absurdity
| of this position, suppose the special seS-
/ sion of the legislature had not passed
| the law making the office of the superin-
| tendent of insurance elective in 1900, and
you, as you have already done, appoint
| Mr.. Church as superintendent of in
surance; while he fills the place you
] keep tab on him and you approve what
! he does and go before the state and
/ say that you approve of every act of his,
! and then suppose that in 1901 you are
I succeeded by some one else-as you
! certainly will be-and he would cite Mr..
{ Church to appear before him and an
/ SWer charges that had been passed upon
! by yourself in your official capacity as
/ governor. Doesn't it occur to you. as a
| lawyer, that the superintendent of in
! surance would have an elegant time
| keeping tab the chief executive,
! Your action leads me to believe that you
i consider this an office to be given to
! your friends, and that the friends will
| do your bidding. 1 will say to you
that 1 am not constructed along these
| lines. While have been in this office
/ I have been enforcing the laws of this
state, and compelling the insurance
companies to pay their losses in this