The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-07-02
REGARDING MASONIC MUTUAL.
DR.. L. c. WATSON Makes n Statement
Concerning Law Suit.

To the Editor of the State Journal.
AS the last president OF the Masonic
Mutual Benefit society. and therefore
xuily conversant with the facts, viii
you permit me to correct some sr-
roneouS impressions which might be
drawn from your recent reports of the
trial of the case of Harvey, receiver,
against the directors of that society.
At the time the Masonic Mutual sold
out and transferred its membership
and insurance contracts to the North
western Life Assurance company, of
Chicago. every claim known to exist
against it had been paid except one
death loss wherein proofs had not been
made This claim was afterwards
promptly paid by the Northwestern.
Under the terms of the transfer-to the
Northwestern, the latter corporation
assumed every contract and liability of
the Masonic Mutual.
Something over six months after the
transfer to the Northwestern, the lat
ter company transferred its member
ship to the Mutual Reserve Fund Life
association, of New York. and the per
sfstent members of the old Masonic
Mutual are still insured in this latter
association. By the terms of this lat
not assume the payment of any claims
already accrued against the Northwest
ern, but such claims were to be paid
by a trustee appointed by the members
of the Northwestern who retained all
Its assets for that purpose; the courts
of Illinois subsequently appointed a re-
ceiver in place of this trustee.
During the time the members of the
Masonic Mutual were in the North
western, and prior to the transfer to
the Mutual Reserve, the Northwestern
paid every known death claim arising
from the old Masonic Mutual member
ship, and at the time of the transfer
to the Mutual Reserve there were only
two such death claims unpaid and
these had occurred so close to the date
OF such transfer that claims under
hnr1 had 1r,f Hnar dc Va "a
these have since been settled by the
receiver of the Northwestern. Since
the transfer to the Mutual Reserve.
this latter company has paid all death
claims promptly as they have arisen,
so far as we have been informed.
At the time OF the transfer of the
Masonic Mutual to the Northwestern
the MOulton claim in litigation in this
directors of the Masonic Mutual as a
just and legal claim against the socie-
ty- The case had been tried in the dis
trict court, determined in favor of the
society, and had not been taken to the
supreme court. 1t was not overlooked
however, in the transfer to the North
western. but the latter company under
the terms of the contract assumed the
payment of it, If it should ever become
a liability. and further the facts in re-
gard TO the alleged claim and the exact
condition of the litigation were fully
explained to the officers of the North
western before and after the transfer
of the Masonic Mutual, both orally and
in writing. This Moulton claim us
not determined to be legal liability
against the Masonic Mutual until
year or two after the transfer. and
there has been no effort to enforce OF
collect il from the Northwestern or its
receiver. The Masonic Mutual has TO
other known unpaid claims.
We believe the above statement of
facts is due to the late officers and d.
rectors of the Masonic Mutual, who
acted in perfect good faith in the
transfer of the business and property
of that society as the court held in it's
findings in this recent case.
L. C. WATSON