The Topeka state journal., 1903-02-05
WON'T STOP IT.
Judge Hook VIII Name Cyrus
Leland and VIM. w. Hooper.
Will Have Charge of Kansas
Mutual Affairs.
HOPE TO REORGANIZE.
Things Indicate That Company
Can Continue.
Judge Hook Said He Didn't
Want to Stop 1t.
IOPE TO REORGANIZE.

At 2:30 this afternoon it was an
nounced by Judge W. c. Hook that
Cyrus Leland and VIM. w. Hooper. a
Leavenworth attorney associated with
John H. Atwood. will be the receivers
for the Kansas Mutual Life Insurance
company. Atwood and Hooper are at
torneys for the Kansas Mutual
A third trustee win be appointed by
Judge Hook to serve with Mr.. Leland
and Mr.. Hooper Mr.. Leland was sug-
gested by the plaintiff and Mr. Hooper
by the defense.
The plaintiffs attorneys objected to
E. n. Morrill, on the ground that he is
a director in the company, and Judge
Hook stated that he will not appoint
him.
The bond was fixed at $1,000 for each
trustee, or .$25,OoO for the three.
Under the supervision of the receivers.
or trustees which is a less harsh
term, the business of the Kansas Mutual
viii be conducted by the present Off
cials until such time as a plan for the
reorganization of the Kansas Mutual
can be evolved, submitted to the policy
holders for ratification, and put into op
Grafton.
The Kansas Union Life Insurance
company, which was to have taken all
the business and assets of the Kansas
Mutual. will continue its existence. Its
officials and headquarters are the same
as those of the Kansas Mutual. 1t has
$500. 600 OF new business in its own name,
which will be carried on.
There is possibility that the proposed
reorganization of the Kansas Mutual
Will involve the eventual consolidation
Of that company with the Kansas Union
The 7deeree of the court, which the at
tofneys have been hard at work upon
this morning at the Office of Rossington,
Smith Histed, was signed TINS after
noon by Judge Hook 1t provides among
other things that the Kansas Mutual
Life InSul anee company snail protecS
the Kansas Union company from ali
loss on obligations OF policies assumed
under the relTau rance contract given py
the Kansas Union to the Kansas MU
tuaL This is practically transferring
back all the policies which the Kansas
Union assumed. to the Kansas Mutual
Holders Of policies in the Kansas Mu~
tual will pay their premiums in the
usual way, and they viii be recetpted
for by the proper officers
1t is not believed that the officers Of
the Kansas Union. or Kansas Mutual,
will appeal from Judge Hooks decision.
President J. p Davis said to reporter
for the State Journal:
we can't tell yet what will be done
about an appeal I feel that Judge
Hook has been misinformed as to our
motives I do not think we merited
such "a severe criticism as he gave us.
We tried to follow cut his suggestions
and adopted what appeared to be the
4 only possible method. We needed addl~
] tional money in the business and the
only way to secure the S100,0 900 was to
4 sell stock and give the stockholders con-
/ troll Of the company
I am confident that the difficulty viii
all be adjusted, and that some way viii
/ be found for the Kansas Mutual to con-
tinue in business"
One Of the attorneys for the company
said: The case will not be appealed il
some plan of reorganization can be
Z agreed upon which is satisfactory. BuL
! If they try TO force something on US we
do not want the case will certainly be
appealed I think Judge Hook went too
far in criticising the officers of the
VIM w. Hooper the newly appointed
+ receiver, is a comparatively young man,
and will no doubt be more actively in
control of the company than would
+ Ex-Governor NORTH. Mr.. Hooper will
probably give up part of his Leaven-
worth business, and devote most of his
/ time to the supervision of the business
of the company In conversation with
a reporter for the State Journal Mr..
/ Hooper said.
Just what plan of reorganizatio can
/ be evolved it is impossible to say There
/ are many things to be considered When
/ the receivers, or trustees, in conjunction
with the court. have fixed upon a plan
which seems advisable. it will be sub
mitted to the policy holders of the Kan
sas Mutual Life Insurance company
and they Will be given an opportunity
TO vote for its acceptance or rejection
( The existence of the Kansas Union Life
Insurance company is not affected by
this move. That company is growing
concern, and win continue to exist"
It is claimed by the officers and attor-
neys of the Kansas Mutual that the
Duggan suit is backed by agents of rival
insurance companies, who hope to force
the Kansas Mutual to go out of buSI-
ness and reinsure all its risks in some
eastern company They claim that the
suit is for the purpose of driving Kan
sas institution to the wall for the benefit
/ of foreign concerns.
At a conference held Wednesday
4 afternoon after Judge Hook had read
his opinion, the attorneys asked Judge
Hook to suggest some way by which the
Kansas Mutual Life Insurance company
/ could be reorganized as a mutual con
cern. and at the same time comply with
the law by having 100000 capital. Judge
4 Hook said:
Gentlemen, I have nothing to say
about that. It is too big a question for
me to undertake to discuss
In his opinion Judge Hook had dis
tfnctly stated that he would not attempt
to pass on the question of whether an
insurance company can legally transact
I business in Kansas without a capital
stock
oOHlr HNOpAt btllcNE LAal II VIII De
impossible to effect legal organization
Of the Kansas Mutual without trans
forming it into a stock company. and
the only way the directors could find to
do this is by Judge Hooks decision
declared invalid It is therefore a
question whether OF not the receivers
viii not be forced to sell off the assets
Of the company, and pay the policy
holders, in proportion to the amount
they have paid in.