The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-07-15

and consent Of each of the I'VE insur-
ance companies represented 1t viii
be remembered the Fraker case was an
attempt to defraud the insurance COM
panies.
The answer also denies that untrust-
worthy agents have been kept in the
field by the company
1t is also denied that the plaintiff In
the present suit demanded redress
from his alleged grievances before the
suit was brought.
The answer is in part as follows:
In its answer to the plaintiffs bill
in equity the defendant corporation
states that since its charter was
amended in 1892 and since its tenth an
nual report was sent to the plaintiff
and other members of the defendant
company in January, 1892. the defend
ant has issued and has yet outstand-
ing and in force more than 5000 pol
icies aggregating more than eight mil
lion dollars OF insurance. all of which
policies are insurance contracts issued
upon the legal reserve basis During
said tine the defendant company has
paid out in death claims and dividends
to Its members more than one million
dollars. and that the defendant now
holds more than three hundred thou
sand of reserves for the benefit of its
old line policy holders
1t is alleged that each Of Its CO.
defendants have simply been one mem
Der of its board of directors, consisting
of five separate directors. From the
year 1893 to the present time the board
of directors has consisted OF Hon. F.
N Morrill,, John R Mulvane, J. p. Well
Wis. John F. Moon and w NJ. Well
come 1t is alleged that it has paid
out, since 1897, more than $1,000 to its
policy holders on the plan of 1886, by
way of dividends to decrease the cost
of insurance and that it has been set
aside for the year 1901 the sum Of over
$4,000 for the payment of dividends to
said policy holders The defendant de-
r41e nos Is in "a
plaintiffs suit and denies that he has
suffered any wrong at the hands Of the
corpora ton or of its cO-defendautS
upon which he is entitled to equitable
relief. but on the contrary 1t is averred
that this suit is not brought by the
plaintiff in good faith but that the
same is brought for the purpose of
harassing the defendant, Gripping its
business and impairing its usefulness
The defendant corporation is in
formed and alleges that its cO-defend-
ants. the officers. could have prevented
the institution of this suit by the pay
ment of $1,000 out of its treasury, and
It AYERS that there is no warrant in law
perm itting its co-defendants to pay out
large sums of money for such purposes
and that the officers refused to permit
the funds entrusted to their keeping,
belonging to the policy holders. to be
transferred and paid out in such man
ner Instead of using every oppOr-
tunity to deplete its treasury its said
of its existence advanced it large sums
from their personal funds to enable it to
meet its obligations. and rendered II
their services at a scale of cOmpensa-
ton far lower than they had been &C
customed to receive in other employ
ments. That the defendant beginning
business with nothing had on January
l. 1901 a surplus of over two hundred
thousand dollars; that it has now a
membership of over six thousand four
hundred policy holders. whose policies
aggregate over eleven million dollars.
and has in hand the full legal reserve
required by the laws of the state of
Kansas to be maintained for the pay
rnent of such policies when they shall
mature AS a part of its assets the de-
fendant has now on deposit with the !
treasurer OF the state of Kansas stand J
ard securities to the aggregate amount /
Of more than four hundred thousand /
dollars reserved for the security of its /
policy holders. During the year 1900 it I
made such deposits to the amount of /
over $4,000 and gained in income an /
average of over 1000 per week