The Topeka state journal., 1903-06-17

purpose of investigating a plan for re-
organizat ton beg leave to submit the
following report:
We found the subject under consil-
GRAFTON required much more work than
we Anticipated and by reason of the
great calamity which recently beIell
this section OF the state the members OF
the committee We're unable to give the
necessary attention to the work.
In the judgment of the committee th>
reorganization of the Kansas Mutual
Life Insurance company by the policy
notderS, or the organization of new
company by the policy holders could be
accomplished and in a way that would
be adNantag geous. Our investigation
convlnces us that ii is necessary that
q company, to conduct What is known
as an old line life insurance business,
would be required by the laws of kan
SaS to possess a cash capital of at least
SiOOOUO. In addition to subscribed anc
pald up capital OF Sl00 O09- we would
recommend that an additional amount
OF Slu00o0 be subscribed to the surplus
OF the new or reOrganized company.
Inc new company would then possess
paid up capital of 100000 and in addi-
tlon thereto would have a surplus of
SlVVOOO with whatever surplus might
accrue from the Kansas Mutual Life
Insurance company 1t is our belief
that TO insure the success of the new
company, such as is proposed, that II
pc possessed of a sufficient surplus in
order tnat the company could make
an equitable adjustment of all policy
contracts and in doing so would not bs
financially impaired. 1t would be no.
tlee to the policy holders and to tbs
puDllc that the company was possessed
OF Suf1clent funds to meet any and all
oDhgatlons Such an organization
would inspire confidence and enable the
I company to Immediately proceed with
business without in any way depicting
It's necessary resources. Such a plan
would be good Investment for the
stockholders and the company would be
enaDled to pay reasonable dividends.
I'he plan proposed would also, in the
Judgment of this committee. afford the
poIcy holders a more liberal and equit-
aole treatment of their contracts. Ouf
stock be divided into shares of small
denominations of $50 This would con-
template that each subscriber to the
stock would pay $1O0 for each share OF
SoO ana IN this manner create a capital
500 600.
As to the method of adjusting policy con
tracts, concerning which there is not any
HISpute the committee does not feel that in
tne limited time which they have had at
tiiSif disposal that it would be proper for
them to attempt an exhaustive report We
90 submit however. that with the addition
of the capital as has been nroDosed and
with good working surplus. which we
would earnestly recommend that the new
company would be strong financial or
stockholders and be a credit to the state
Of Kansas. There is no similar organiza-
plant so valuable and one that has shown
such vitality in times of storm and stress.
The elaboration of the plan adjust
ment of the contracts would have to be left
to committee TO be subsequently APP
pointed when the details could be arranged
and after time had been given for full
consideration. The assistance of com
petent actuary would be required.
We summarize our suggestions and re-
Communications follows:
J. The organization of new company
with paid in cash capital of 100000 and
a paid in surplus of 100000 to be added
to whatever might be received from The
Kansas Mutual Life Insurance company.
2 Par value of shares $50.
3. Subscription price of shares 500.
f. The company to conduct an old line
( insurance business.
5. A board of directors to consist of not
less than fifteen in number
g. Risks of old company to be assumed
by the new or reorganized company which
is to assume the present policy contracts
except what are known as natural prem
ium policies with Increasing rates, to be
defined in some manner that would be
equitable to all parties or TO be replaced
with level premium policies.
c. 3. HOFFMAN,
J. NJ GOING
A W. DANA.
A. A. RODGERS,