Arizona republican., 1917-04-26
COMP ANY WILL
 GLADLY ALLOW
 INVESTIGATION

Whether the bonds and insurance policies of the Arizona Mutual Auto Insurance company are sufficient in demnty, as required by city ordinance. is question the city commission and the city manager have been asked to determine. A petition was filed yes terday with the commission of Herman Lewkowitz, attorney for Wesley A. Hill. attacking the financial standing of the company and asking that it's status and affairs be investigated.
 Specifically this petition asked that all policies issued by the Arizona Mu- tual Auto Insurance company which had been accepted by the city manager as being sufficient as surety bonds un- der the terms of Sec. Ordinance l05 be declared insufficient, improper se curity and void, and that all policy holders be required to substitute in lieu thereof good and sufficient bond or indemnity policy, such as the ordinance specifically requires.
 Carl H. Anderson, secretary y-treas- urer of the company, Tiled a reply to this petition, in which he stated that the Arizona Mutual Auto Insurance company is a legal Arizona corpora liOll, lJtllls5 uulN filCOi pOItltu ullUtE lIle laws of the state. The company was incorporated, said the petition, January g, 1917 and, as is customary under the statutes, was re-incorporated April' 1, 1917. For this reason, argued MT An lerSon, the Phoenix city commission had no jurisdiction. to take action on the Hill petition. The commission, he said, has not the power to be behind the action of the corporation cOmmis- sion in this action
 Anderson further set forth the fact that at the time of the incorporation of the company the matter of it's or ganiZation was carefully considered bv the corporation commsson and the at tOrney general, the latter submitting the opinion that the cOmpanys $ plan of organization was legal under the in- 5urance laws of the state. and that all the objections raised by the petitioner. regarding the legality of the company. were carefully considered by the cor poration commission and attorney gen erals office, the same questions having been raised at that time After full and careful consideration of the law the corporation commission issued liz :ense to the company authorizing it to issue policies and make contracts of in surance within the state.
 Mayor COrpStein stated that he thought it matter for the city man lser to take up with the corporation commission and report at the next meeting.
 Commissioner Woods asked the opin- | lon of City Attorney Sloan in the mat ter.
 Attorney Sloan stated that he had iraWn gp the articles of incorporation or this company and being their legal representative. his opinion would nec- essarlly be biased and prejudiced, and ! le did not think it proper that he should give an opinion in the matter 1 but that Assistant Attorney Nelson would probably be glad to do so. Attorney Nelson stated that it seemed to him If there were anything at all to De considered Ill regard to the right of he company to do business in this state. that 1t was matter for the cor poration commission to decide Attorney LeWkOWitz said il was not a question of whether 0. not the com pany was duly incorporated and legal | orporation-he was not arguing such | polnt-but that it's bonds were not of sufficient stability to warrant their ac- l ceptance by the city.
 | ne city charter provides, it was pointed out, that in accepting these | bonds. the city manager shall conduct
 l careful investigation into the affairs | Of the bonding company and shall re- fuse to accept the same shall he find them unsound. It was this point that.is | involved in the Hill petition. said Lew l koWitZ
 To this, Mir. Anderson replied that th. | company affairs were being conduct | cd Tn safe and sound manner. as pro- l Nlued Tn the corporation statutes H, invited members of the commisson tt
 investigate the company's affairs an6 announced that he would pay the ex. pense for an audit of the books.
 After considerable informal discus l slon, It was decided that an investisa
 ton should be conducted by City Man. | ager Craig, who will make his report a
 the next meeting of the commission.
 Under suspension of the rules an or dinance was adopted making the de
 facement and mutilation of books
 papers, periodicals. furniture. fixture:
 md other property of public lbrarie.
 md public buildings in the city o
 Phoenix misdemeanor.
 Ordinance No. 99. Section l25. Wa,
 tmended making the quarterly Iicens,
 TOT collection agencies $2.50 instead O
 $2500
 The draft of resolution. calling fo
 oids for the improvement of certai,
 portions of Fillmore street. third
 rourth, Fifth and Sixth avenues. wa
 presented for reading and laid ove
 pending the settlement of the status a
 senate bill 50, relative to alternate bid
 ding
 communication. signed by Clarenc
 l.. Standage, clerk of the board of slI
 perVlsors, granting permission to D. [
 Harrer to stand his express or transfe
 wagon on the east side of the cour
 house plaza, was read. Upon motion q
 MacBean, seconded by Woods. the Der
 mission asked was granted.
 COAL MIMEpc crpIkr