The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-17
Old Policy Holders of Kansas
Mutual Disappointed.
That S134,OOO Surplus Has
Dwindled to $4,000.
ABOUT SO PER $1,000.
All the Kansas Mutual Policy
Holders Will Get.
Cost of the Receivership Was
About $4,000.

There will be little surplus to be dis
tributed among the policy holders of
the Kansas Mutual Life Insurance COM
pany who were transferred en- masse to
the Illinois Life.
George E. Cole. who was at one time
trustee for the Mutual. and who subse-
quently took the job of Kansas agent of
the Illinois Life, says that instead of
being S134, 600 as the Illinois Life repre-
sented would be the case. the surplus
to be distributed will amount to only
$13, coo, with a possibility of an addition
al liability of $4,000 being admitted by
the court, which will entirely wipe out
of existence all the surplus, so far as
the policy holders are concerned.
Every dollar which the Illinois Life
can charge up to some sort of liability
means just that much in the Golfers OF
that company, and just that much less
to be returned to the long-suffering
Kansas Mutual policy holders.
About all the Kansas Mutual policy
holders will get out of the wreck of their
company, according to present indica-
tions is the SO per thousand which the
Illinois Life offered to pay for the in
surance. Contrary to the general ex-
pectation of the policy holders, this will
not be paid out $40 for each 81, 900 in
surance a man carries. but the company
will pay in a lump the $40 per $1,000 Of
insurance in force. and this fund will
be distributed in proportion to the
amount of premiums each policy holder
has paid in. Thus the old policy holder
will get more than $40 per thousand for
his policy, and the new policy holder
will get less. 1t is estimated that the
bonus will amount to about per cent
on the amount of premiums paid on
each policy:
Within thirty days it is expected that
the report of the actuaries who are
working on the case will be ready, and
then it will be known exactly how
much the policy holders will get. The
Illinois Life people, according to Mr.
Cole, expect to get practically all of the
$134 900 surplus.
About 5000 of this surplus went for
paying the trustees, the attorneys and
the court costs of the receivership. So
the $1O0, 900 which the Illinois Life will
get by means of the liability plan will
just about pay the SO per thousand
which the company had to give for the
business. Hence the Illinois Life prac-
tically got the business of the 5000
Kansas Mutual policy holders for moth
ing. 1t was a very good stroke of bus
mess for the Illinois Life.
1t was frequently represented by the
Illinois Life when the fight for control
of the Kansas Mutual was on that the
amount to be distributed among the
policv holders would be $134 900 in sur
plus and $107, 900 as bonus. Here is an
extract from a circular issued May rs,
1903:
This company proposes that the en-
tire surplus assets over and above
death claims and legal reserve, approx
imately S134, 9.66, and the entire bonus,
approximately $1O7, ,505.S7, shall be i'm
mediately apportioned among the policy
holders as a credit on their accruing
rrer7iJ1TnS -
Here is another extract from a cir
cular issued about the same time, but
bearing no date:
AFTER the reserve. death claims and
other liabilities are provided for out of
the assets. all the balance of the as
sets approximately $134 1896, to be
Immediately apportioned among the
policy holders to reduce premiums. :
These several sums will not be simply
paid into the surplus and held by the
company. but will be Immediately ap-
portioned among the policy holders by
actuaries appointed by the court"
When the trustees of the Kansas
Mutual made their first report, on Feb
ruary "a, 1903, to the condition of the
Kansas Mutual assets. they assured
the policy holders that the liabilities
were $3.50, 1924, leaving an actual sur
plus of SAP. 81. This tailed almost
exactly with the claims of the old
Kansas Mutual officials.
Subsequently, on May Is, 1903 the
trustees issued another report in which
the accumulated reserve fund of $780,
900 was charged UP as a liability and
the guarantee reserve fund of $50, ,000
charged up as contingent liability,
leaving a surplus of only s13, 3,35e.70.
This later report provoked a heated
discussion between the friends of the
old Kansas Mutual and the trustees
The people who We're trying to keep
the Kansas Mutual officials in power
declared that the subsequent report
Is,
bookkeeping, gotten out for the purpose
of casting discredit upon the old Kan
sas Mutual management.
Geo. E. Cole, one of the trustees who
issued the report, and who is now local
head of the Illinois Life, says:
'As nearly as we can figure, the sur
plus to be distributed will be $4,000
There is still pending before the court
the settlement of the question whether
certain monies paid in under the un-
to the reduction of premiums should not
also be made liability. The amount
involved is about 100000 and if it is al
lowed, it will entirely wipe out the sur
plus. and leave an actual deficit of about
$4,000
THE report of the actuaries is a long
document is now being prepared, and
will probably be completed within 81
days. What they decide in the matter
will be final''
According to Mr.. Coles way of figur.
ing it, the situation is about as fol
lows:
Total admitted net as
sets $727, 900
Liabilities ..........- .......... $6S3, ,000. o.
Cost of receivership. .. 10000 Oh
Contingent liabilities 10000 o.
Total liabilities $74a, ,ooo. .ot
Deficit, approximately $4,000.
Prohibitory Statute Sustained.
Jefferson City, No. Nov. 1.-THE
supreme court today held that the
statute rIo1ibiting the giving away o1