The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-05-23
NO SURPLUS.
Trustees Say Officers Knows
Mutual Life
Certified to Surplus Which Did
Not Exist.
A BIG DISCREPANCY.
Covered Up and Money Declar-
ed on Hand.
'IG DISCREPANCY.
Trustees Charge MisapprOpia-
tiOn and False Statements.

The trustees of the Kansas Mutual
Life Insurance company issued a state
ment today in which they charge the
officers with issuing false sworn state-
ments of the company's condition; de-
claring that the company reported sur
plus of S146,279.41 when only S13.359.70
existed and that while according to
contracts 100000 shall be in reserve for
certain policies, nothing was so reserv-
ed. The trustees say that the secretary
of the company admitted, that report of
last December was untrue and upon be-
ing confronted asked to be permitted to
change entries.
The trustees say they show over $780,,
600 misappropriated by the officers.
The statement of the trustees is as
follows:
In Mr. Davis letter of May 20 critics.
ing the report of the trustees he states
that we were obliged to find the COM
pany solvent. The facts in the case are
we did find a surplus for the company
amounting to $13.359.70; we also found
that according TO the terms of the con-
tracts of the policies of the plans of
1885, 1888 and 1889 there should be about
$500 900 to the credit of those policy
holders, yet we find no fund placed 10
the credit of those policy holders We
100000 of this fund deposited in secure
ties with the state treasurer to the ben
eft of these policy holders under the as
sessment law. as shown by our state
ment of liabilities on page of our
report This would leave a balance of
over. $780, 900 that should be to the credit
of these policy holders which has been
misa appropriated and no account here
tofore made in the reports issued Dy
them.
We call attention to the report OF De-
cember 81. 1902. OF the Kansas Mutual
showing a surplus of Sl46. .279.41. show
ing a surplus of about $133,00 that did
not exist. After our report was com
piled Mr.. Moon. the secretary. was IN,
vited to appear before the trustees, and
was asked how he accounted for his re-
port on December 81. 1902, showing the
surplus of S146. 94l, and requested hlTn
to explain some peculiar entries In one
place he took over $4,000 from the unl>
form premium policies that had been
set aside to surplus and charged 1t oil
to profit and loss and placed it to ex-
pense. He stated that he had known
for some time that the company haI
practically no surplus. Mr.. Cole then
said to him, Why did you not so state
to the court2 He replied that perhaps
it would have been better if he had
done So that he was in favor of 50
stating, but that the other officers ana
advisors of the company had opposed
him making such statement. He az
the same time requested Mr.. Cole to
allow him to change some of the entries
upon the books relative to- these funds.
which Mr.. Cole refused to allow him
to 60.
The report of the trustees is made
from the records of the office, the proof
thereof are the facts beyond any ques-
ton. We show a surplus of s1s,359- 20
against their sworn statement of $146,-
27941. We show that over 100000 be-
longing to certain policyholders under
IT.
misappropriated by the officers of the
Kansas Mutual, as shown on page 26
of our report
C. LELAND. JR.,
GEO. f. COLE,
Trustees Kansas Mutual Insurance co.
Toneka. Kan. Nav % 1908.