The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-13
DENIES STATES
RIGHT TO EXAMINE.
Grand Fraternity Thinks Colonel
Buttons Report lmpertincnt
and Scandalous.'
OFFICERS COMMISSIONED
New D Company Commanders
Enter service-Hearing Set
for Requisition.

General denial of the charges pre-
ferred against it by Colonel Joseph
Button. Commissioner of Insurance Of
virginia. is made in the reply filed
yesterday before the State Corpora t on
Commission by the Grand Fraternity. of
Philadelphia, to the answer of Colonel
sutton. The case comes up To the
Corporation Commission on an appeal
from decision of the Insurance Com
missioner in refusing 20 relicense the
fraternity for 1911. @
The reply of the Grand Fraternity
states that Colonel Buttons answer
contains many inaccuracies in its
statement of facts. and II comments
upon what 1t calls 1.-The manIfestly un-
falr and improper manner In which the
answer sets forth the reasons" EN-
ception Is entered to 'hearsay. irrele-
want. impertinent and scandalous'
statements contained In that paper.
There Is no doubt that the commits
sioner went after this so-called fra
ternity pretty sharply in his answer
10 the appeal. and his habit of calling
spade what he sees as such has pro-
Hoked the hot retort which was filed
yesterday.
Questions Right to Examine.
The Eravaman of the situation is
whether or not the Virginia officials
have the right 10 examine the books
of an Insurance organization in detail.
when not located within the state. to
the extent of determining whether or
not 1t maintains reserve sufficient
TO cover the liability on each ccrtih-
cate When Examiners Isaac Daven-
port and r. NJ. Hobson were sent to tho
Offices Of the company last autumn to
look over Its books they were denied
permission to make such an examina-
ton rs they desired. Consequently
the relicense was denied. Thereupon
the fraternity appealed TO the Corno-
ration Commission. Upon the hearing
OF the case the commission directed
that an examination be had. but when
the second attempt was made the con-
Germ asked for further time In which
TO fie It's reply. which was done yes
terday. The contention that an eXami-
nation in such cases is only permits
sible to the extent OF discovering the
solvency of the organization would
be serious one should the commission
decide With the Grand Fraternity. since
It would upset the plans of insurance
departments generally.
Plain Words Used.
Colonel Button charged that the re-
port of the, Grand Fraternity was
cieNerly Woroed to conceal the fact
mat the association is not. perhaps, a
regular life insurance company" This
&c denies. 1t also Indignantly states
that 1t Is reliable and solvent, and
denies that it is n fraudulent concern,
engaged in obtaining members by
fraudulently misrepresenting It's true
condition.
AS to It's lodge system. which Col
onei Button says does not conform to
the law governing fraternal beneficiary
associations. the reply says that there
were some irregularities in Virginia in
this respect but that they have been
corrected.
When seen regarding the reply yes
terday, Commissioner Button smiled
and indicated that he had nothing to
say at present No date has as yet
been set for any hearing or further
action by the commission in the mat
ter.