The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-04-14
MUST PAY Up.
Burial Association Forced to
Comply With Law.
Commissioner Luling Is DeIuged
With Letters.
WHAT is TO BE DONE.
Asked How They Can Get Into
Good Standing.
Provisions of the Law Are
D-xH,
WHAT IS TO BE DONE.
Provisions of the Law Are
Rather Exacting.

asked by the state charter board to
give an opinion on the eligibility of
burial associations doing business in
the state to take out state charters
The charter board has turned down
two applications for charters for such
associations pending the decision OF
General Coleman.
Theirs is a strong sentiment among
the members of the board that state
charters should not be granted to
burial associations under their present
plan of management. It is claimed
that certain provisions in regard to
forfeiture Of premium payments
makes the burial associations unde-
sirable.
In case the charter board refuses to
grant charters to burial associations,
it will practically disbar them from
doing business IN the state, for the
superintendent of insurance viii not
grant authority to do business to I'M
chartered associations
Letters by the hundred are pouring
into the office of Insurance Superin-
tendent c. H. Luling asking for infor-
nation about the burial association
/ laws.
From every little Kansas town which
has a burial association and from the
| big towns which have two or three such
organizations, the letters are coming,
followed up with more letters to he
i secretary of state, and then more let
| tiers to the insurance superintendent
| It is all on account of the recent decis-
1 lon of the supreme court, holding that
| burial associations in the state are not
authorized to do business until they
comply with insurance laws.
It is only within the past five ears
that burial associations have come into
general existence. Somebody invented
a scheme for the organization of burial
Il associations and copyrighted the
scheme. He charges a small rake-off
on every burial policy issued The plan
Is usually handled by the local under
taker from a -neighboring town The
undertaken agrees TO give 800 funeral
to every person who joins the burial as
ISOLATION so long as that person keeps
IN his dues. The dues are fixed at a
small specified. amount which Is collected
every time any IN ember dies II the
membership 6f the association is large,
n the 1lnderta ker sometimes gets a, good
deal more than 500 for the funeral. He
is at any rate assured of getting the
business" of every person VINO JOINS
I the association.
It is a scheme much patronized by the
) poorer. classes, as it enables them, for a
c verv small fee to insure themselves
: against being buried in anything but
the hest of style It is very much ike
the Chinese system Of guaranteeing &c
take back to China the bodies of those
who die in a foreign country
: Tor q number of years the burla
: associations continued to grow anc
f multiply without interference. IneI
(. Insurance superintendent {. IL LuIlnt
( decided that the state might as wei
be collecting some revenue from them
as they we're doing what was. 10 al
intents and purposes, assessment in
surance. He brought suit against
burial association doing business II
announced 10 the burial association
that unless they sscame in out of thu
= rain he would put them out of bust
ness. and prosecute them for doing al
The result is that the officers o
every little burial association in tn
state have beer writing letters of in
{ | curry to the Insurance department
4 shall we do to comply with the law ?
The first thing that is required j
that the company incorporate. :
: private concern can not come unde
: the insurance laws. So the burial as
| gOciafion must incorporate. This cost
1 F$25O which is paid over to the sec
4 rotary of state. After being admitted
o to do business in the state by the stat
a charter board, the burial association
Y comes back to the insurance depart
! | ment. puts up $25 more and is au
n thOrized to continue it's burial system
/ In the future each burial associa
ton must contribute annually to tn
4 funds collected by the state depart
G ment of insurance. 1t is likely tina
g this will result in a considerable in
crease in the amount of money col
r lected by the insurance department
I and il will also put the burial associa
J tons under the charge of the depart
g nent of insurance. The books an,
: records of the associations must b.
2 open to the inspection of the depart
:, rnent and the department will be abb
to find out whether they are beini
s honestly conducted It is claimed tina
I in the past there has been considerabl
; graft in the management of some 0
these associations
It is likely that the requirements viii
be too severe for some of the smalle
! associations, and they will probabl,
have to 90 out of business. The one
which are guilty of misconduct in tn
raanazement Of their affairs will ais
e have to d5ite or reform. There are pos
. sibly so to- 100 burial associations il
D the state. and this means new revenu
OIL of from $4,000 to S25, 600 per year.
4 Insurance Superintendent c. H. Lu
ling is today sending out the followin
= letter to as many of the burial associa
t tons as he has been able to ge
2 track of:
n Several years ago I brought suit
a through the attorney generals Office
r against the Wichita Mutual Burial as
ISOLATION. operating under the Harrison
plan. holding that these association
we're doing business in violation of tn
t insurance laws The case was tried il
4 the district court Of Sedgwicks county
s which held an adverse opinion, from
i j which 1appealed to the supreme cour
Y az Kansas. which court upon the tr1a
t If the case unanimously held that
q was right and ordered the district cour
4. IL issue q perpetual Injunction agains
i the Wichita Mutual Burial association
Z '.If you desire to continue IN IN
49, s@t2 4r,ez