The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-05-29
WILL NOT Be SOLD
Policy Holders May Not
Agree
OWING TO NEW LAW
Two-Thirds Majority Must
Favor Reinsurance

Topeka, Kan, May 2S.-The belief is
pretty generally expressed that it viii be
impossible for the policy-holders of the
Kansas Mutual Life Insurance company,
who will meet here on next Monday, to
take any action looking to the reinsur-
ance of the companys policies. This will
be due to the law. passed by the legisia-
ture at its recent session, providing that
any move looking to the reinsurance or
reorganization of a life insurance COM
pany must have the approval of al least
two-thirds of the policyholders of the
company. 1t is thought extremely I'M
likely if it will be possible to get two
thirds OF the poicyholders of the Kan
sas Mutual to agree upon any Of the
propositions for reinsurance which have
been submitted. If this should be the
case it will be necessary for the policy
holders TO adjourn and have Judge Hook
resubmit the proposition.
John E. Moon, secretary of the Kan
sas Mutual Life Insurance company, yes
terday made a sworn affidavit denying
the allegations made by George E. Cole
and Cyrus Leland, trustees of the COM
pany, relative to the financial condition
Of the company. The affidavit follows:
state of Kansas County of Shawnee, IS /:
John Z. Moon, of lawful age, being
first duly sworn, on his oath says:
He has read the statement Of Cyrus
Leland. Jr, and Geo. e. Cole. trustees
of the Kansas Mutual Life Insurance
company, published in the State Journal
Of May %, 1903. Affiant says that he did
not state to Mr. Cole. in the interview
referred to in said publication. or at any
other time. that he had known for some
time that the company had particularly
no surplus. He further states that he
did not say TO Mr. Cole that perhaps it
would have been better il he had stated
TO the court the company had no surplus.
He further denies that he stated to Mr..
Cole that he was in favor Of stating to
the court that the company had no sur
plus, but the other officers and advisers
of the company had opposed his making
such a statement
Affiant further states that it is not true
that over $2O0.00 belonging to certain pol
icy holders has been Incorporated by
the officers of the Kansas Mutual Life
Insurance company. and he denies that
any other sum has been misapprOpriated.
Affiant further states that there is
portion of the surplus Of the company
to the credit of certain pOicyhOlders, as
shown by carefully kept memorandum
accounts. bat there is no provision in the
contracts of such policy holders for the
distribution of their funds until the end
Of the accumulation period as provided
by their policies. The surplus does not
become a liability until distribution has
been ordered by the board or where the
accumulation period has arrived for such
distribution
The surplus of the company stated by
the officers thereof in their annual state
ment. December 81, 1902, based upon the
actuaries' table of mortality and four
per cent interest, is absolutely correct.
All of which is true. to the best of my
knowledge and belief.
Further affiant sayeth not.
(SeaD JOHN E MOON.
Subscribed and sworn to before me, this
9th day of May. a. D., 1908.
Geo. B. MANNING. Notary Public.
Commission expires Sept, 13, 1905.