The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-04-04
Judge Hook Signs Decree in
Kansas Mutual Case.
Trustees Ordered to Prepare
Plan Of Organization.
Will BE SUBMITTED.
Court to Have Policy Holders
Act On 1t.
Sale to the Kansas Union Is
AnnulIed.

Judge Hooks decree in the Kansas
Mutual case was made public today.
Except insofar as it affects the indi-
vidual rights of John P. Davis. John L.
Moon and William L. Welcome to con-
test further the charge of fraud made
in the original petition of Plaintiff D.
NJ Duggan, the decree is final and is
agreed to by all parties to the suit
The important part of the decree is
in regard to the reorganization of the
Kansas Mutual or the reinsurance of
its risks. Judge Hook lays down def
mite plan of procedure in this matter,
which is of so much importance to the
policy holders of the company that it Is
herewith quoted in full:
TT is further ordered. adjudged and
decreed that at the time of the said sew
eral transfers herefnbefore adjudged to
be null and void all the property and
assets Of the Kansas Mutual Life Insur-
ance company of every name and ma
ture belonged to and were owned by the
+ policy holders of the said Kansas Mu-
| tual Life Insurance company and were
appOrtionable to the said several polcy
! holders under their said several con-
tracts of insurance as their said several
/ and respective interests might appear,
and that since the seizure and seques-
rations of said assets by the court the
I ultimate disposition OF Sdlu property anu
+ the determine ton of the resumption OF
/ business by the Kansas Mutual Life In
( suFance company appertaln TO the pom
| cy holders, and their rights in that be-
half are to be exercised by them under
the orders and direction of the court
according to law
THAT to the end that a speedy adj
ministratiOn of the funds in the names
of the court through it's said trustees
be- had. the trustees are ordered at TIE
T earliest possible moment to formulate
! ara to present to the court for sub
mission to said policy holders some plan
OF plans of reorganization Of the KAN
sas Mutual Iake Insurance company II
the same can be lawfully and practi-
tcabIy made, and for the election of OIL
GERS of such organizations and shall also
secure propositions from other solvent
life Insurance corporations authorized
to do business in the state of Kansas,
whether foreign or domestic, Or whether
companies possessing a capital stock or
organized on the mutual plan, to REIN
sure the policies of said the Kansas
Mutual Life Insurance company, and
shall upon securing such proposition or
propositions formulate the same for
transmission by mail upon the order of
the court to each policy holder. and to
that end shall call special meeting or
meetings of the Solicy holders for th-
purpose OF determining whether such
company shall go into liquidation. shall
Teorganize or shall accept any one OF
said propositions of reinsurance. And
WHe0 any one OF Sa1Q DfODOSlt1OQS snail
be lawfully accepted by said policy
holders the said trustees shall. under
the order and direction of the court II.
that behalf to be made, as provided for
at the foot of this decree. execute th>
same.
And it is further ordered, adjudgcd
and decreed that until the propositions
herein crowded for have been submit
ted to and passed upon by the policy
holders under the orders and directions
of the court the said trustees and ali
their agents and servants and all per
sons employed by or acting for them
one directly or Indirectly the, names or
residences Of any Of the policy holderS
Of the Kansas Mutual Life Insurance
company or to solicit from them or anV
of them the privilege OF acting for such
policy holders in any manner except as
specifically provided for by some order
Of this court
1T is furthered ordered, adiudeed
; and decreed that each insurance COM
pany making a bid to reinsure the bus
mess of the Kansas Mutual Life In
surance company shall deposit the sum
of $4,000 either in cash or evidenced by
a certified check to insure its carrying
out and executing its proposition. such
sum of money to be forfeited upon the
non performance of such proposition if
accepted, and covered into the assets of
said Kansas Mutual Life Insurance
company"
The decree goes on to state that the
court having appointed George f. Cole,
Cyrus Leland and Wv Hooper as re-
ceivers called trustees instead of re-
ceivers. but with all the powers rights
and privileges and all the duties and IL
abilities of receivers as known to the
law" these receivers. or trustees shall
continue. under the bond already given
for the faithful discharge of their du-
ties.
Judge Hook specifically states that he
will issue further supplemental direc-
tions and DEGREES in the following sec
ton. which closes the long document:
1T is further ordered, adiudged and
decreed and the court does hereby re-
tain this cause for such other and fur
ther orders and DEGREES as may be
found necessary; and it IS further or
dered that all questions and issues not
hereby disposed of and adjudicated and
all ma tiers of administration relating to
the action of the trustees or receivers
and the final disposition of the property
in their hands and to the discharge of
said trustees and the settlement of their
adjudication
ANNULS THE SALE.
The first part OF the decree is devoted
to a formal rehearsal of the action of
the court already reported. annulling
the attempted sale Of the Kansas Mu-
tuaI to the Kansas Union That the
decree is given by the consent of all
the parties is shown by the fact that il
it stated that ". H Rossington and
Clifford Histed were present in court
on March %, representing the plaintiff
d. NJ Duggan, ct al, and that f. E
Prussing. John H Atwood, R. T Her
rick and David Overmyer appeared for
the Kansas Mutual and Davis, Moon
I and Welcome.
The decree then says. And there
upon. in open court the said parties
/ consented to the following decree in the
above entitled cause. and thereupon il