The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-04-09
Illinois Surety Company Elected
From Kansas.
Insurance Commissioner Barnes
Issues Order Today.
REFUSED TO PAY BOND
Was Given to Russell Milling
Company Of Kansas.
Gave as an Excuse That 1t Had
Been Cancelled.

Insurance Commissioner C. W.
Barnes today stated that he had made
an official order barring the Illinois
Surety company of Chicago from trans
acting any further business in the state
of Kansas. This company, in other
words, is ousted from the state and has
no longer any legal standing whatever.
This decision of the commissioners
was made on the strength of a COM
plant from the Russell Milling com
pany and the refusal of the surety
company to give the commissioner any
explanation of its strange action in the
matter
The milling company some time ago
sent carload of flour to an agent in
New York who had given bond to the
milling company through the Illinois
Surety company. This bond was can
celled by the surety company while the
flour was en- route to New York and
the agent received the flour, disposed of
it on the market and skipped out, leav-
ing the mill people to hold the empty
sack. When complaint was made to
the surety company and the effort
made to collect on the bond the Chi
cago concern replied that it had cam
celled the bond and therefore declined
to stand for the loss.
The milling company took the matter
UP with Commissioner Barnes and the
commissioner got into communication
with the surety company. He could get
no satisfaction from them at all, nor
any reason as to why they had can
celled the bond of their New York man
after the -four had been shipped.
Aroused at this unwarranted proceed
ing on the part of company whose
first duty is protection, Commissioner
Barnes today took the action noted
above. "Since this company can can
eel bonds when it pleases and without
explanation of its action 1 think the
state will be better off without such a
of the matter. .As / understand the
duties of my office it is to protect any
citizen from any outside corporation
against which this citizen may make
just complaint. am not conducting a
collection agency, it is true, but l am
bound to receive some satisfaction or
explanation when q citizen Of this state
has received what appears to be a raw
deal. This order will likely wake them
up a little and they may start a legal
proceedings against me. but feel that
1 am perfectly justified in the action /
have taken. One thing is sure, the IL
linois Surety company cannot transact
any further business that is legal in
this state
The commissioner stand in this mat
ter appears to be well taken. The av-
erage citizen who appeals to this
office comes over some small matter in
which he is completely at the mercy
of the insurance company or corpora
tion in the case as he cannot afford to
bring Individual suit. The commission
er usually is able to adjust the case
without trouble and stands for a square
deal between the corporations and their
patrons in this state.
The corporation showing a disposition
to do anything like the right thing is
protected by the commissioner as well
as the people, but when the big fellows
on the outside of the state get high
and mighty the insurance commissions
er acts as curb upon their sprightli-
ness.
The Illinois Surety company have a
capital stock of s25O.00O and assets in
excess of $400 900. They entered this
state about two years ago and this is
the first complaint on record against
them in the commissioners Office.