The Topeka state journal., 1903-05-18

--SS. 800, 125 10
The expense Of management of this
company for the year 1902 was 3e. 40 nor
cent of the total income. whereas the
average expense of management of
twenty leading life insurance companies
OF the United States was 1916 per cent.
AT the time the trustees were ap-
pointed, there was serious question
as to the validity of the level premium
legal reserve policies. constituting about
twc-thirds Of the business Of the com
pany- THIS was owing to the claim OF
defective organization of the company
IN 1892. Accordingly the legislature of
1903 was prevailed upon to pass law
enabling corporations situated like the
Kansas Mutual to validate and confirm
this class of policies by a resolution Of
the beard of directors a COPY of which
should be filed in the office of the super
intendent Of insurance of the state ol
Kansas. It IS provided bv. the law that
upon such resolution being passed the
validity of such policies cannot there
after be questioned. Pursuant to the
statute. the board of directors passed
a resolution. a certified copy of which
has been duly filed with said superin-
tendent of insurance, so that all ques-
tiOns affecting the validity of this claSa
of policies issued by The Kansas AIu-
tual Life Insurance company is set at
rest
With the thorough examination that
has DEeil maze IelaJlNe 10 the aIalTS OF
this company since its organization VIC
DO not hesitate in the least TO say that
We believe Kansas to be a most excel
lent field for life insurance As per
statement herein set forth it is shown
that the Kansas business of this COM
pany has been profitable and we bea
lieve had the business been handled
honestly, economically and in a thor
ough business-like manner its affairs
would not be in the condition they are
4l7ra.1
Kansas and the city of Topeka would
be enjoying the results of a prosper
Ous and thriving life insurance orga niz-
alton The pohcyhoIders were entitled
to and should have received equitable,
just and honorable treatment.
The expense account (32.Ss per cent
of the company's gross income) was far
in excess of the legitimate needs of the
company's affairs 1t far exceeds the
average of any life Insurance company
in the United States of which we have
knowledge, and is surpassed by none.
The misuse and large diversions of
moneys from the purposes for which
they We're contributed by the policy
holders and provided for by the con-
tracts ana bylaws of the company.
their families and friends need no COM
ment from US. The policyhOlders arc
to a large degree censuIable for their
+ Indifference and inattantion to the COM
Danv's affairs and thus have permitted
these Ll1n2S TO come 10. pass l. n0tl
the facts and circumstances of this
case. il is rot a harsh or unreasonable
criticism to say that the officers of this
corporation, who were in charge from
J its organization, seem to have been pos
sessed with the idea that it was A close
corpora ton in which they and their
! families and friends were the chief il
not the only benefciaries, and the ad-
ministra ton has been conducted with
/ that end in view
THE trustees believe from their
I knowledge of the companys affairs
that it is not yet too late to rescue this
I estate and secure to the policyholders
the full measure of their contracts
through eithcr a reorganization or q
reinsurance with some solvent and rep
utable life insurance company. A
/ liquidation of the compauy's affairs We
do not deem advisable. A trusteeshiT
was inevitable under the management
which has obtained, and the policyhold-
ers are TO be congratulated that it oc-
CURED in time to save themselves from
tiryetrievable loss and disaster.