The Montgomery advertiser., 1909-06-24
IS
CANCELLED
Removed Case to Federal
Court.
GREAT WESTERN LIFE COMPANY
Suffers Penalty Imposed on Foreign
Corporations by Code.
No Injunetion Sought As in Previous
Cases--Act Alleged Was
Committed Last Year And
just Reported.
WESTERN LIFE COMPANY
NO Injunetion Sought As in Previous


City Circuit Court to- remove q civil
cause to the Federal Circuit court OF
the Middle District of Alabama. Secre-
tary of state Frank ". Julian yester-
day cancelled the permit OF the Great
Western Lie Insurance company, of
Kansas City, Mo. The company did
not seek an Injunction against the
state official as have other foreign
corporations who sought to move into
a Federal court and it Is believed that
1T will have to pay the penalty pre-
scribed by law before its agents can
again resume business In Alabama
Secretary OF State Julian said yes
terday that the cancellation Of the
Great westerns license did not in
fluence the existing policies of the cor
poration In force In Alabama or else
where.
"On the contrary" added the Secre-
tary OF state. the company's business
is invioiate and the policies are just
as good as ever and premiums may
be RENTED as before the permit was
cancelled. AS far az the Department
has been able to ascertain the Great
Western Life Is sound in every way,
But the Alabama law has been violated
and nothing was left but to take away
their license"
The Secretary of State added that
the Great Western as recognized
was mot responsible for the outlaw act
which has brought trouble upon their
heads. There was q time when the
Alabama Department of Insurance
looked obviously upon the character of
the company and Commissioner Julian
made a trip to Missouri to inspect the
books thereof. On being refused access
to the books the company was sus-
pended from Joing business in the state
There was q. reorganization of the
concern and upon a frank statement
satisfactory to the Alabama Depart
ment the company was re-admitted to
do business.
1t was under the old regime that~the
petition was filed August Z, 1908, with
the Alexander City Circuit court ask
ing that a certain cause therein pend
ing entitled Lila S, Sandun ct al VS..
Great Western Life Insurance Conn
pany be removed from that court 10
the Federal court at Montgomery.
August IL the petition was granted
and bond made as required by law for
such removal. 1t was asserted that on
account OF diverse citizenship in the
case the company had the right of re-
moval to the United States court.
Although this was at the August term
of the State court 1t Is noted that not
until June 10 did Secretary lof State
Julian receive his certificate from Cir
cult Clerk J. l. Reeves, setting out the
petition. 1t is only on receipt of such
certificate that the Secretary of State
can cancel the permit =
The case at athe bott8mseef all the
trouble is, that OF the willow and heirs
Of James I. Sandlin. whose death in
1908 terminated two policies Of life
insurance, one in the sum of $4,000 and
the other In $4,000. Thus, exclusive of
costs, the amount involved was more
than $4,000 and the foreign Corpora
ton availed itself of the right to ask
for removal Of the cause. The con-
test of the company is because Of the
alleged suicide of the insured.
George A. Sorrell. attorney for the
beneficiaries of the insured, was In
the city yesterday in conference with
the Secretary of State relative to the
litigation. 1t was after this confer
ence that the decision was reached
withdrawing the license Of the Great
Western
The only way of restoration Of the
company to do business in this state
is to pay to the Secretary of State as
a penalty one-tenth Of one per cent.
of the capital stock OF the corporation,
which is 100000.
Following is a copy of Section 1854
of the Code under which yesterdays
action was taken:
ANY Foreign corporation Vt hoh-
resident corporation, or corporation or
ganized under or by authority of the
laws of any other state or government
than the state of Alabama, doing bust
ness in this State, and having obtained
a permit, as required by law, being
sued In any of the courts of the state
of Alabama, which files or causes to
be filed in such State court any petit
ton, motion, or plea, praying or asking
that said cause be removed to any
Federal court, or which causes or pro-
cures the issuance of any writ. war
rant. notice, citation, or summons from
any Federal court removing said cause
from such State court TO any Federal
court, the clerk of the State court shall
forthwith certify a copy of said petit
ton, motion, plea, writ, warrant,
notice, citation, or summons to the
Secretary of State. who shall thereupon
Immediately cancel the permit issued to
such corporation and make and enter
on the stub thereof an order in sub
stance: "This permit is cancelled for
a violation of the law under which
issued by the removal of a civil cause
from a court of this State to the
Federal court" date and sign the
same"
NEWS OF DEMoPOLIs.