The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-03-24

!. E. 81. !. J g. '... e $ !. .
m ~~zz#A given everything asked
ffl1H48an E#gtAs for and the award is
XtHIHHil q. complete victory for
'IHfHltHNAS the stockholders who
f'HHEUh are interested in pre-
"WiA S7P venting the officers of
] p Davis the Kansas Mutual
from selling out the
company to another concern. In award
ing the decree Judge Hook outlined in
suggestion basis upon which the trus
tees should provide for a reorganization
of the company. ANY change IN the
management of the company Will be
approved by the policy holders.
Several days ago the attorneys for the
Kansas Mutual and the Kansas Union
Life, the defendants in the case, ap-
peared before Judge Hook in I.eaven-
worth and agreed TO accept final de-
cree Of the court The case has pre-
viOusly been appealed by them to the
United States circuit court of appeals
which is now sitting in St. Louis. but
their agreement to accept a degree from
Judge Hook is a virtual dismissal of the
suit in the appellate court. The attOr-
neys for the two sides are directed by
Judge Hook TO draw up an agreement
TO be submitted TO him for approval.
Should the attorneys be unable to agree
Judge Hook will formulate the decree
himself His suggestions IS to the form
of the decree We're too plainly made to
be misunderstood He directed that it
be presented TO him for inspection at
this afternoon S sitting of the court
A sensational Incident OF Monday
afternoons g session Of the court was the
fling of information by George L. Cole,
one Of the trustees, stating that certain
papers containing lists OF the names OF
policy holders OF the Kansas Mutual
had been surrepdfiously removed from
his possession by officers of the Kansas
Mutual Life Insurance company and by
g. J. Mcpherson. a representative of the
National Life Insurance company, and
that they refused to return them. Judge
Hook cited the persons named to appear
before him at > p. m. today to show why
they should not be held in contempt of
court In closing his order Judge HOOK
remarked:
4 desire to say for the benefit of
those who desire to connect themselves
with this case on the side of the defend
ant that the settlement is to be conduct
ed IN the open and above board. There
is no side door or back door to this
case This mas no reference to any Of
the gentlemen present, but Will apply TO
the case throughout. There have beeiV
too many whisperings and secret goinss
on in this case. There is no back door
OF side door to this case. and any one
VINO wishes to enter it must do so by
the front. There will be no transfer Of
the assets of the c0mrany until every
proposition has been submitted to the
policy holders of the Kansas Mutual
Lie Insurance company
THE DECREE.
When the arguments in the Duggan
case were closed some time ago Judge
Hook gave an exhaustive opinion in
which he held the consolida ton of the
Kansas Mutual with the Kansas Union
to be void and illegal. and he appointed
trustees to assume charge of the affairs
Of the company until the suit was set
tied The defendants filed notice of an
appeal and Judge Hook withheld his
decree until the appeal had been tried
On account of the agreement of the de-
PENDANTS to accept a decree Judge Hook
hastened to close up the case at once.
His instructions to the attorneys indi-
cate very closely the nature of the de-
cree which viii finally take its place on
the records as the nnai Judgment of the
court in the case. It will leave the bust
ness of the Kansas Mutual in the hands
of the trustees who are to conduct the
reorganization
It directs that the trustees formulate
plan of reorganization of the Kansas
Mutual along the lines laid down in the
new law covering sales of the assets of
mutual life Insurance companies. The
decree also directs the trustees to an
nounce to other companies that offers
for reinsurance will be entertained by
the policy holders of the Kansas Mutual
Life Insurance company. The trustees
shall submit these offers to the policy
holders and shall call q meeting Of them
in Topeka to determine the future policy
of the concern
Under the working of this decree the
Kansas Mutual may continue as in
dependent concern or may be consolf-
dated with some other life Insurance
company. That the National Life IN
suranCe company of the United States
which has been making efforts to Sc
cure control of the Kansas Mutual life
insurance through the purchase of the
Kansas Union. the conclusion of which
deal was announced a few days ago.
viii be given no advantage over any
other company viii be the effect of this
decree The effort of the National Life
to get in on the ground floor viii avail
it nothing and it will get possession of
the assets of the Kansas Mutual only
by making a better offer for reinsur-
ance than any competing company can
give.
There are about 1900 policy holders in
the Kansas Mutual Life Insurance com
pany and each one viii have a vote
upon the final disposition Of the man
agement of their concern. The trustees
now in charge of its affairs will con-
tinue in their positions until the reor-
ganizatiOn or reinsurance is completed.
When stating that the transfer of the
assets of the Kansas Mutual would be
conducted in such manner that no
person or company would be given any
advantage Judge Hook took occasion to
state that the trustees We're endeaVoring
to discharge their duties with absolute
fairness and would not be Influenced by
any outside interest He also said that
he believed the attorneys for the plain
tiff. Rossington, Smith & Histed, were