The Topeka state journal., 1903-06-18


either transfer his proxies or attend the
meeting. BY consent of the house, w.
w. Hooper was sent to 715 West Sixth
avenue to get Mr.. Mills instructions on
how to vote the ten proxies. They all
went for the Illinois Life.
TIE result of the first ballot was as
follows:
Total vote OBSERVATION-DISCLOSURES ,220
For Illinois Life. ACKNOWLEDGEMENTS. .I16
For National Life. fe..--.....--......--1 40
For k C. Life-.-..-. -.--.--.---.--.- -
After this ballot a motion was made
to adjourn. but it was defeated.
The second ballot:
Total vote l05
Illinois Life --.-----.-----..-.--.- 64S 64S
National Life Observation-Disclosures. Az
K. G. Life. e.-.-..-----.-.. 20
Then the meeting adjourned until
O'Clock.
THE ILLINOIS LIFE PROPOSITION.
The president of the Illinois Life is
James w. Stevens. Its headquarters are
Chicago. 1t has $50 900, 900 insurance
in force, 81. 600 assets. and $5,ooo,ooo
reserve. A summary of its reinsurance
contract is as follows;
TERMS OF THE SALE.
/. In consideration of the transfer
of all the assets of the Kansas Mutual
Life Insurance company to the llllnois
Life Insurance company, the latter VIII
reinsure all the policies of the former
conpany in good standing, and will as
sumo all the debts and liabilities OF sald
Kansas company
, The assets of the Kansas company
are to be valued by some bank or trust
company appointed by the court. After
+ first deducting from the total value OF
said assets
{a) The total amount of all valid
death claims and policy claims.
(b) The total legal reserve on all out
standing policies.
6c) All other debts. obligations ana
liabilities of said Kansas company;
The balance shall be considered as
surplus to policy holders. to be appor>
toned by actuaries appointed by the
court among all the policy holders of
the Kansas Mutual Life Insurance
company From said surplus to policy
/ holders there shall be first set aside ths
guarantee fund properly belonging to
4 policies on the original assessment and
sIep-rate plans. and this guarantee
fund shall be applied by said actuaries.
under direction of the court on these
old policies to equally reduce all sub
sequent premiums thereon After set
ting aside the guarantee fund. the bal
ance of the surplus to policy holders
shall be applied over a period of three
years to reduce the premiums on all
/ policies. except in the case of psid-uf'
and extended insurance policies, whers;
the app0ftienment shall be paid in cash
instead of being applied to reduce the
premium The tentative apportionment
of surplus to policy holders hereunder
excess of legal reserve. based upon the
! trustees financial statement dated Feb
ruary 20, 1903 assuming said statement
( to be correct, would make a total or
/ $134, ,539. S.
3. In addition to the surplus to policy
4 holders, the policy holders shall receive
/ a reinsurance dividend, amounting to
ten ($10) dollars per thousand on each
| thousand dollars of the total business
4 reinsured (Which reinsurance dividend.
on the basis of a reinsurance of $10.750.
587, the amount of insurance in force
4 May l. 1903 would amount to s107-
505.S7 and said reinsurance dividend
shall be apportioned among the several
policy holders in the same proportion
that the total premiums paid in cash
by each policy holder during the life of
his policy bears to the total premiums
paid by all policy holders whose policies
are in good standing on the day the re-
insurance is effected Said reinsurance
dividend shall be allowed as a credit. in
two equal proportions, upon the pre-
miums due and paya BILE upon each
policy for the two full policy years next
succeeding the apportionment. Assum-
mig that the foregoing figures are ap-
proximately correct, the total distribu-
ton to policy holders would aggregate
S107 .505.S7 plus $134. 539. &C. or a grand
! total of $242. .045.53
4. The policies reinsured shall be con-
tinued in force at the same rate they
are now paying provided that all poll
cies so reinsured and commonly known
or designated as the sO-called natural or
increasing premium or assessment poll
cies, shall be continued in force as one
year renewable term policies, at the re-
newal rates written upon said poll
cies. except that where no yearly re-
newal rates are written on the policies,
then the rates shall be on the basis of
the actuaries' table of mortality and 4
per cent interest, with a loading of three
dollars (S3) per thousand per annum-
j. II is understood that if the prOpO-
siti0n of the Illinois Life is accepted by
the policy holders of the Kansas Mutual
Life Insurance company. it shall be
binding upon all the policy holders
whether voting for it or got; provided
however. that any dissenting policy
holder may upon written notice served
upon said company within Is days after
said reinsurance. withdraw his equitable
share of the assets, in lieu of accepting
said reinsurance; and any dissenting
policy holder failing to so serve notice
shall be given paid-up insurance for
such an amount as his equitable share
of the assets win purchase.
TRUSTEES FINANCIAL STATE
MENT.
IN order to correct many statements
which have been made about the great
expense of administering affairs of this
company by the receivers said Mr.
Leland, addressing the Wednesday eve
ming meeting. i desire to read a sum
mary of what we have done since tax
ing charge"
Mr.. Leland then stated that the Kan
sas Union turned over to the trustees
the sum of SIS, 722. .26-
The trustees have paid out between
February ; and June 1, S24,S00 in deatl
, losses and s., ,53775 for back commits
. sions to agents. agents expenses, clers
. hire rent, supplies and postage.
The trustees had in bank on June Is
$99. .oSsS1 Owing to pressure of Other
business Mr. Leland says that th'
drafts which have been received during
, posted and that when this is done til.
cash on hand viii amount to consider
/ ably over 800 900.
"A small portion of this IS loans which
have been paid in said Mr.. Leland bu
this source only amounts to a few thou
sands dollars.
A former Kansas Mutual official take
issue with Mr. Lelands statement II
: says that over $4,000 of the 100000 Ia.
been Maid IN roat11rpd loans Ie aiS0 as