The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-08-11
they STRIKE BACK
National Bankers Will See
About 1t.
File Suit to Force RecognltlOn
by Insurance Department.
OPINIONFILED AT LAST
Mr.. Barnes Says the Guaranty
Company Is Illegal.
Gives Five Reasons Tor NOT
Granting Certificate.
OPINIONFILEDATLAST

The trouble between State Superln-
+enden+ of Insurance Charles W.
Barnes and the Bankers Deposit Guar
artv and Surety company came to a
climax Tuesday evening when the state
official wrote a formal letter refusing
To grant to the Insurance company inc
right TO do business in Kansas I'M
,,,adiatelv after this refusal the surety
coulpanv prepared petition Ior wiz
Of rnandanus compelling the STATE su-
perintendent to grant them INC 'lSI,1 III.
to do business in this stdte: NJ
Barnes has been holding up his tornla4
ooinion for several days though al tlt5 w
bankers knew long ago what II "oulU
be. -
reasons for not allowing the big $5UO'-
600 company to operate in this state.
In the first place he stated thal tney
would have to live up to certain con-
di+iOns before they could be granted d
permit He says that the company
authorized stock is not fully paid, ana
that they have not deposited $1oo'oO9
with the state treasurer as Is Tequlieu
by law ,..--- -. -,i,,c-
thai he was doubtful If the state laws
would permit the Incorporation OF suC9
= company. He also stated that ne hdd
q good many doubts over the torTn Oh
policy issued The TACT Lhat WI
barnes doubted the validity of thS
company is what caused the writ OF
Tnandanus to be filed fr'+'' the supreme
court. -,
The officials and attorneys for the
Surety rleOple decided at once after Mr
Barnes had given his opinion that tney
would make no effort at TINS time 10
conform to the additional provisions
and thew started the suit in the Su-
7,rene court to make a thorough test or
The statement bv the superintendent
that such a company could not operate
under any circumstances under the
state laws.
The petition simply states that the
company has done what mas been re
o1lired and this was admitted by MI
in+endent is exceeding his authority in
DENYING the Bankers Deposit Guar
antv and Surety company the right to1
do business in Kansas
The letter of superintendent Barnes
in full reads as follows:
NV Dear Sir: have had under
consideration your application for GER
tifcate of authority to transact busl-
ness in the state of Kansas. desire to
advise:
'-First-You have. in my judgment.
complied with all the requirements OF
this department and with all the re-
ouirements of law. except for the mat
tiers hereinafter noted, and except for
those matters you would be entitled TO
the permit for which you ask.
.'Second-Your authorized capital
is 100000. OF this amount $246, $50
has been subscribed. and S257.S5O
has been paid. Your charter is issued
under chapter 159 of the laws of
1905. and section ? of that chapter
requires the paid up capital of not
less than S250,000.
But Section 3 of this act makes it
necessary for such corporations to
comply with the laws of this state
governing life insurance companies,
so far as applicable. and Section IS
q
lating to life insurance companies
provides that no company shall be
permitted to engage in business until
all of its capital stock shall be sub
scribed for, or until the corporation
holds the notes of the respective sub
scribers for such capital stock with
good and sufficient security therefor
other than the stock of the said COM
pany.
not permit the company to engage in
business until its authorized capital
stock is fully paid as contemplated
by the statute mentioned in the fore
going.
Is Corporation Valid?
'"Third-The life insurance COM
panies are required to deposit with
the treasurer of the state 100000
Cchapter 80. laws of 18719 and I am
of the law is applicable to your com
pauy- You have not made such de-
posit.
"Fourth-There exists grave doubt
as to whether the laws of this state
permit the Incorporation of COM
panies for the purposes for which
you are Incorporated. do not
think in a matter of such general in
terest and great Importance that the
permit for which You ask should he
granted where such doubt exists
Fifth am not entirely satisfied
with the form of policy which you
propose to issue. but certificate of
authority is not denied for that rea-
son, because am satisfied that there
will be no difficulty in reaching an
agreement concerning the form of
contract which your company will
issue
For the reasons herein set forth,
ana for no other reason. your
application for permission to transact
business in Kansas is denied"
Mr.. Jackson's Position.
Attorney General Fred s. jackson
made q startling statement This ,7,C,---
Ing concerning the recent opinion and
the effects Of the opinion as handed
- down by Superintendent of TnsI1ra-CeI
Charles Barnes. ~ AiiN9
Mr. Jackson claimed that the state
9lehL 70 the erect that he had advised
Mr. Barnes concerning the lack Of 46a|
corporate power OF the comnsn1 -
guarantee deposits was false. Mr. TaoI-
son states that he had told Mr.. RarnHs
III WILlen statement that this cono
Pany had this power. Ills cOlll-
Inc attorney general accuses +Le
Bankers Surety Guarantee e Derosit t.jt
COMPANY Of making this Statement statement
themselves. He claims that tbeTy 80 -
ed to test the question before +hS WISH ~lsn-
1or the benefit of the stockholders a. and ID
Mr. jackson denies the statements
have given out interviews 70 t'Iily +IIy VINO
that the state officers are attenn1ins, Mic