The advocate., 1894-05-16
First published May 1S, 1s94.l
OFFICIAL REPORT.
OF the Examination of Th4 Kansas Mutual
Life Association.
STATE OF KANSAS,

following letter:
~. P. DAVIS, WIN. WELCOME, JNo <. Moon,
Pres. Vice Pres. Sec.
"THE KANSAS MUTUAL LIFE ASSOCIA.
TI0N.
"TOPEKA, KAs, April 6, 1894.
Hon. S. Il. Snider, Superintendent of Insurance,
Topeka, KdS.:
"DEAR SIR-The management Of the KAnsag
Mutual Life is extending it's business into ad-
joining states, and tnasmuch Ss there has been
no Official examination made OF this assOola-
tl0n BY the Kansas insurance department
since October, 1887, during Hon. D. w. Wllders
standardization, and believing shat q new ex.~
animation made by you would facilitate work
In adjoining states, we most respectfully re-
quest that at your early convenience you, or
your assistant, or both OF you, make q thor.
ough and complete examination Of its books,
accounts, vouchers, policy contracts, assets,
securities, methods OF business, etc., and
q. P. DAVIS, President"
Pursuant to statute, and In compliance with
above request Of the president of the company,
|, the undersigned, superintendent Of the in.
snrance department Of the state Of Kansas,
have made an examination OF the condition
and affairs Of the Kansas Mutual Life associR-
tiOn, Of Topeka.
In doing this, engaged the services Of Mr.
D. R. Hite, an acknowledged expert insurance
lawyer, who began the examination on the 7th
of April.
His report in regard to the examination,
submitted to and fled in this department on
the 7th inst has received full and careful con-
alteration on my part; and tnasmuch as per-
sonRlly made this examination In conjunction
with Mr.. Htte, tt appears to me to be Appr0-
pirate that / should file an expression Of my
own views and opinions in the premises
formed during the examination which was
made under my personal direction and super
vision, and the facts and points thereof wero,
therefore, personally known and considered
hY rnn a Ff 40 NJ a Ina
engaged the services OF Mr. Hite 20 exam
Inc all matters pertaining to contracts, s0curl-
ties and general business methods, In order TO
determine, from q legal standpoint, whether
or not In these particulars the company con.
formed to the laws Of the state, as well aS to
question directly, and thoroughly cross 0x-
anime the officers upon all points raised in re-.
gard to Its general business methods.
The report OF Mr.. Hite shows conclusively
that the Kansas Mutual Life has, In the form
OF Its contracts, the investment OF ttS funds,
the computation Of its reserve liability and ltS
general business methods, complied with the
laws Of this state under the most rigorous con-
struCti0n Of our statutes
Without consulting the officers Of the COM
pany, called to my assistance MesSrR Good &
Fellows. Of Chicago, I'LL, chartered expert ac-
countants Of national reputation, with Offices
in Chicago, New York and London, In whose
hands / placed the books of the company,
with Instructions to audit same from its or
gantZaetOn to date.
Mr.. Fellows, Of the firm, brought two assist.
ants from Chicago to this city, and with them
examined the entire business of che company,
checking the accounts, verifying balances, and
comparing vouchers The result Of this in
quiry was balance sheet taken from the
books, which agreed eractLy with the COM
psny's last report to this department The &C
countants report appended hereto indicates
the most thorough investigation of the books
OF account and records Of the company.
1t seems proper to say that the result indi-
Gates the most scrupul0us care BY the officers
In recording their business transactions.
The report OF the experts shows smOBt salts
factory system Of checks and countercheckg.
The most satisfactory result to me in this
whole examination Is the manifest c0ncluAl0n
that this institution, the only one OF Its kind
In the state, whose business interests and re-
lations extend, and are being advanced
throughout Its borders, as well as Into the
contiguous territory Of sister states, and
whose policy-holdefs and members are num-
bered by thousands, is, beyond aquestton, In q
condition OF absolute solvency from every
standpoint, and Is the actual owner and pos
SCISSOR Of surplus Of available assets exceed
ing its present liability by ratio Of $S16 70
each 800; and this, too, upon the highest basis
Of solvsncy known under the insurance laws
Of this or any other state in she Union, namely,
the actuaries' or combined experience table,
with 1 per cent. interest
Those interested may be assured that this
conclusion is absolutely accurate and trust
worthy.
The prosperity OF every life insurance com.
panyp ana bno OeSG interests OF l65 pOuoy nORQ'
ers imperatively demand that all Of itg busi.
ness acts and transactions, through Its
directors and officers, which in any way afiect
the value Of its securities OF its assets, Of the
character Of its business methods, should be
reported and made known, not only 70 the
policy holders but as well to this department
and the general public, like any other institu.
tion or corporation.
The acts Of the directors and executive
officers Of life insurance company should be
and are open to the Investigation and scFu-
tiny Of the department In which such author
ity is vested by law for their supervision and
control, and hence the policy holders may
rest assured that their every interest 10
guarded and protected.
The securities held BY the Kansas Mutual
Life, which are limited by law to certain
kinds, and which, by the same law, are re-
Quired 70 be deposited with the treasurer OF