Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-03-17
Wild Cat Insurance Companies
Have No Standing Under
the Iowa Law
CARROLL GATHERING EVIDENCE
One Concern it is Alleged Persists i"
Doing Business in Spite of the Or
der of tho State Auditor That it Has
No Rights Under the Existing Stat
utcs.

Des Moines, March 17.-Auditor oil
State Carroll yesterday added to his
unique collection of evidence that the
Farmers cooperative Live Stock AS
ISOLATION of Cedar Rapids is doing
business outside Of Iowa, an original
policy returned to his office by Herbert
c. Anderson, of Idaho Falls, Idaho.
"rhe concern referred to cannot do
business in Iowa" said Auditor Car
roll yesterday, land 1t cannot do bust
ness outside of Iowa while 1t is resi-
dent of this state, If this office is once
able to secure the evidence on which
to enjoin it or punish it's officers for
violation of the insurance laws.
Some time ago we informed the
company that 1t was doing wild
cat business in our Judgment, and 1t
would have to cease. We went so far
as to secure an opinion from the at
torney general of the state. He decid-
ed not only that every concern, wheth-
err partnership or corporation must
conform to the insurance laws OF this
state, but he decided that 1t was I'M
lawful to write insurance on live stock
In this state. This opinion has been
furnished the Cedar Rapids concern
but we have understood that it has
been writing this class Of business out
side OF the state. Its operations have
been in Idaho. Illinois and other
states, we believe. The receipt of the
Idaho policy this morning indicates
that the concern has written at least
2,12b of the policies as this one bears
that number.
1T is the position of the insurance
department than an insurance concern
which cannot do a legal business IN
Iowa can not live in the state and dc
business outside the state.
THE wild cat companies Of Chicago
insisted for a long time that they could
do business from Chicago in other
states than Illinois. The supreme court
Of that state decided that they could
not do SO, that they must conform to
action Of the business they were then
carrying on they were actually do
ing business in Illinois and contrary to
the laws of that state. Now that is
the position exactly that we take with
reference to the Cedar Rapids live
stock concern. 1t is in fact doing
business in this state, tho it may
write no policies within the state. And
the attorney general held that live
stock insurance is not authorized by
the Iowa law"
Refused to Paw All.
The Anderson policy from Idayo
was for $1,000. 1t was issued Septem-
Der 10, 1904. 1t was numbered 2,125.
1t insured 100 range horses. The
premium was Q per cent. The policy
was sealed with gold seal and sign
ed by S. p. Kuhn as president and j.
B. Leverich as secretary.
Anderson wrote to the auditor that
after three months of insurance he
lost three horses. The Cedar Rapids
concern, he said, paid him $50, where
as, 1t should have paid him SIS. Some
time later he lost another horse by in
jury, the agent of the concern shooting
the brute for him to put it out of its
misery He lost another very valuable
animal. Then the time for the pay
ment of dues approaching, he sent on
q check for $3.50, being his dues in
full for the period, on February 6. This
draft, he says, was returned to him
with notice that he was no longer a
member of the association, that his
certificate and policy had been cancel
led and that he owned the concern
He says in his letter to the audi
tor that he knows Of others who are
holding policies in Idaho.