The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-03-18

Of directors 70 retract or a suit would
be instituted. / declined to do this
and the threat has, not materialized.
Nine. The Montana Pulp and Pa
per Manufacturing company''s bonds
mentioned here were substituted for
the notes given to the insurance COM
pany by the Southwestern Agency
company.
Ten. In an examination of tha
company made in July, 1913. We ais
covered that the Montana bonds were
not in the possession OF the company.
and we were notified by the secretary
that these bonds had been sent to
the Spokane and Eastern Trust com
pany at Spokane, Washington. for
registration We required them to
secure for us a certificate from tha
Spokane and Eastern Trust company
that these bonds were in their ttne
trust company'sl possession. and held
for the Appalachian Insurance com
pany, which certificate was furnished
Eleventh. / was advised by the
commissioner of insurance OF south
Carolina that the facts herein stated
were true. lElfiEtAlatNly bicNSHt
this to the attention of the commit
tee on valuation of securities and also
brought ii up before the meeting OF
the executive committee OF the ma
tional convention OF insurance COM
rnfss!oners, when they met In Rich
mond last June. The manner IN
which these securities were listed has
been described In former para
graph.
Twelfth The notes mentioned In
this paragraph were not allowed as
an asset either in the annual state
ments or In the reports OF examl-
nation of this company, unless said
notes were secured by mortgage OF
by some collateral other than the
f,ofnpany's own stock. The commits
sfnner Of insurance, at the time this
stock was sold. had absolutely no SUI
Derv!sion over stock statesmen and III
Misrepresentation were made, the
parties purchasing the stock had their
remedy at law
Thirteenth l. have heard that
some of this stock has been placed
in the District OF Columbia, but l
deny that any complaint made to me
has not received prompt attention
The Appalachian Insurance com
pany has given me great deal OF
trouble ana EtfttNtA CtsaNr ~" tAfN~N
poratfon. / have kept close watch
upon Il from the very start, as evil
denced by the frequent examinations
that have been made OF II. the re-
ports Of which examinations are on
file in this office. and can be present
ca "a you. IL desired. When / IL
censed this company on the hrst OF
last May. notified them that unless
their condition improved. l would not
reiicense them again. nave enoeaN-
ored i'm every way to protect the
stockholders, though 7 do not con-
ceive that am particularly charged
with looking after stockholders. hut
u, look after the interests of the pol
fevhoi4ers. On Wednesday. March
ii. 1914, my examiners completed
an examination OF this company. and
are now preparing the report. A
stockholders meeting has been called
for Thursday. March 10th. at Bristol;
which shall attend in order to lay
before them the report OF the exam
lners AS at present advised / shall
refuse 10 relicense them on May LIST,
and will. very probably within the
next week. apply for receiver to
rains,ire It's outstanding business and
TO liquidate its affairs.
| have attempted to be as BRIEF as
possible In this statement. nut II de~
sired. | can furnish you with the iocu-
,nents to subs,antiate the statements
have made.
Very respectfully
JOSEPH Il. BUTTON.
Commissioner Of Insurance.
The State corporation commission
in an open letter to A. NJ MeAlHsfer,
OF Washington. exonerates Commits
sioner Button. Of the charges made
against him. The letter follows:
March IL, 1914.
Mr. A. NJ. McAllister.
Washington, d. G.
My dear Sir.---Your letter OF Marcn
18th to the governor of Virginia. to-
getber with the accompanying docu-
ments. were by the governor referred
to this commission. tho insurance
bureau being bureau OF this depart !.
ment In response to the request OF
the comfnIssiol, the Insurance -orft~
missioner has given us In writing his
reply to- the suggestion contained In
the complaint
SO far as the commission Is advised
this reply OF the commissioner OF IN
surance Id a sufficient reply to the
complaint, and with the facts now be-
fore us we do not think II needs any
further attention from this commits
sion.
Very truly yours,
r. r. PRENT1SS,
Chairman.
=. S.--Copy of the letter Of the in
9,.rapre commissioner of this date