The Leavenworth weekly times. [volume] (Leavenworth, Kan.) 1870-1880, 1874-12-10
AUDITOR WILDER's REPORT.

We intend, from time to time, TO examine
ard make our report upon Wilders ninety.
six pages. In so long a statement, it is nc
wonder there are some errors found. The
one to which We would call particular at
tention is tbs one in reference TO the de.
funct Home Insurance Company Of Topeka.
The Auditor saws of this Company:
Either this law 1.-THE insurance law is
good for nothing to protect the people, or
This is false certificate of good character.
For il is certain that the Home Company OF
Topeka never had any capital, as everybody
except the trainers of this law understand
the word capital, and lDver had any bot
TOM Its mortgages were worthless; its
stockholders were swindled, and the Com
pany wa. rotten from stem to gudgeon."
The truth is, the main features Of the in
surance law are good. 1t is nearly like the
New York State law. Mortgages are con-
sidered everywhere good security for insur-
ance capital Most of the New York COM
panies are founded upon mortgage invest
ments. Connecticut companies have
generally been organized upon stock notes,
and they are certainly not as good as mort
cages.
Our recollection of the "Home" is that,
the stockholders were mostly farmers, who,
in order to get their property insured at low
rates, and being deluded with the idea that
insurance companies were making enormous
profits, concluded to organize company.
They did so by mortgaging their farms and
placing the new company in the hands of
inexperienced men. Their hopes of enor-
nous profits were not realized-the Home
lost money. They made assessments upon
the stockholders to pay their losses. The
stockholders did not take stock for that pur-
Pose-they declined to pay. The validity
of their mortgages were tested in the courts
the money was collected; the losses of the
Home were paid, and even the outstanding
risks Of the company were re-insured in the
Brewers Insurance Company of Milwaukee.
We fail to see any swindle in this.
1t may be that the stockholders made no
money, but hundreds of companies before
them had the samee1perience.
The stockholders then, only paid that
which they had agreed to pay, when they
subscribed for the stock and mortgaged their
farms.
1t would seem, then, that "the mortgages
were good enough to pay the debts Of the
company, and that was just what they were
given for. They were not worthless" and
the company was not "rotten from stem to
sudgeoa."
From our knowledge Of Insurance matters,
and We have had some thirty years expert
ence, the Home, If We are correctly inform
60, had ample security, with good manage
ment, 10 have made . success, instead of
miserable failure.
No matter how good capital the Home
might have had, with inexperienced insur-
ance men to control it, failure woald have
been inevitable.
viii not Mr.. Wilder zee from the above,
that his report may tend to do harm 10 the
insurance interests of our State! In our
humble Judgment that branch of business
needs the fostering care and protection Of
our State government - much q any Other
buaines.- We fear trouble will come from
the publication Of statemeuts not, in reality;
true.