The Topeka state journal., 1903-05-28
Zee KANsAe muTUAI.

Next Monday afternoon the policy
holders OF the Kansas Mutual Life In
surance company viii meet to deter
mine upon one of three methods Of pro-
cedure covering the affairs Of the com
pany and the protection of the holders
of policies.
These three plans are liquidation, re-
insurance and reorganization
Liquidation means a long drawn out
and probably expensive realization upon
and distribution Of the assets of the
association. This plan has apparently
the least to commend it and few favor
it.
Reinsurance must be in one of three
companies The Illinois Life of Chicago,
The National Life U. $. "A. OF Chicago
and the Kansas City Life of Kansas
City, Mo. These are the only companies
which have made propositions to rein
sure. OF course. before any agreement
to accept any bid there should be a
thorough expert investigation of the
soundness and desirability of the COM
pany favored. ANY transfer of policies
to a company which would not bear the
searchnght would be disastrous and
only put the policy holders in another
predicament such as the present one. \
considerable number are understood to
favor reinsurance.
The third and only remaining plan
is reorganization. This. if it can be
made uDon lines of conservatism con-
fidence and economy, presents the most
inviting features. 1t is declared that
this action would best insure the pres
ervation of the reserve funds for the
PURPOSES set aside.
In the first place a reorganization
would mean the retaining of the com.
pany as a Kansas institution. This is
a sentiment which has a firm hold
upon many of the policy holders, but
which would be unworthy of consider
alton unless attended by strong bust.
ness reasons. These exist.
1t is said by insurance people and men
who have examined the companv's
condition that the Kansas Mutual has
a most excellent body of policy holders
in Kansas. 1t is also known that the
mortuary record of the company is wel
within the table. 1t IS emphatieally
asserted that if the company were re,
organized solely with a view to taking
care of the outstanding policies that
every existing obligation could be met
and every policy holder protected.
The great expense attending a life in
surance organization is the securing of
new business. In the entire history of
insurance it is said that no company
has ever been wrecked by excessive
mortality, but only by extravagant or
unworthy management. A number of
instances are on record where an insur-
ance company has found itself in bad
condition, been reorganfzed with the sole
view of taking care of its old business,
and has recovered itself and been listed
among the strongest institutions of its
kind.
If the Kansas Mutual were reorgan-
lied it should of course. be with the
primary object of continuing the insur-
ance outstanding and with this in mind
the expenses of management could be
reduced to a minimum and be merely
nominal. 1t is the experience of com
panies thus reorganiged that within a
few years confidence is restored and new
business naturally follows.
In this connection the statement that
George E. Cole of the present trustees
wishes to be president of such a COM
pany is denied. At least. Mr.. Cole said:
Il am not hunting such job
1t is a somewhat remarkable fact
that during the trusteeship an unusual
ly large NUMBER Oh premiums nave been
paid and that strange as it may ap-
pear there have been no more lapses
than during corresponding periods
when the company was transacting its
business in a regular way. This goes
to show that there is strong under
feeling Of confidence that the policy
holders of this company in some way
are going to realize upon their invest
ments. 1t also indicates that the trus-
tees have been active in their collec-
tions and that the charge of lama
teurs" is offset by their quick grasp
of insurance affairs; that they have
turned their successful experience in
practical business to good and sudden
aceountings
Whatever criticism may be made of
the old officers, they seem to have
gathered together over five thousand of
the best risks extant and list of which
any company would be proud. 1t has
also developed that the real estate se-
curities Of the company have been ju-
diciously placed.