The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-02-16
Rejects Proposed Compromise
of Illinois Life.
Company Wants to Take Away
Its Securities.
OFFER SMALL BOND.
This Superintendent of Insur.
ance Wouldn't Accept.
Judge POIlOck's Efforts at Ad-
justment Fail.

Charles w. Barnes, state Ssuperin.
tendent of insurance, rejected today an
offer to compromise the suit pending
in the United States district, asking
for a decree to permit the removal of
securities amounting to $593,000 by
the Illinois Insurance company now on
deposit Jointly with the state treasurer
and state superintendent of insur.
ance as guarantee fund for the in
sured in the old Kansas Mutual, whose
business was purchased by the Illinois
Life upon the dissolution of the Kan
saS company.
The compromise was suggested Fri
day afternoon by Judge Pollock of
the United States district court at
conference participated in by Henry
w. Price, N H. LOOMS, representing
the Illinois Life as attorneys, and At
torney General F. H. jackson and
Charles w Barnes, state superinten-
dent of insurance. representing the
state. The compromise proposed the
substitution of bond for the securi-
ties held, the amount of the bond was
left for arrangement between the par
ties to the suit.
After getting together Mr.. Price fin
ally offered a bond of 100000. Both
Attorney General Jackson and Mr..
Barnes were inclined to accept COM
promise but when they learned that
Price proposed a bond of a minimum
size they broke off negotiations ten
tatively, Mr.. Barnes finally decided to.
day to refuse any other overtures.
: 81 have decided not to accept any
compromise. L will let the suit con-
tinue," said Mr.. Barnes
'I think 1 have got the best end of
the thing from a matter of public pol
icy. I don't know what the law on the
subject is. The attorney general Is
now engaged in looking up that feat
ure. But from the standpoint of pub
lie policy think L have got all of the
best of 1t.
ct don't think that L should assume
the responsibility at this time, before
the question of law igFwolved has been
settled in the court and is about to be
decided, to step -in- @affd2permit- thesa
securities to be withdrawn and a bond
substituted There are some questions
on both sides of the case and it, has
been hotly contested by the attorneys
both for and against. 1t does not occur
to me that on the eve of Il: decision by
the court and with all of these quesA
lions involved that L should attempt
to settle them by accepting bond and
permit these securities to be taken
away from here
The insurance company claims tina:
the law under which it was required to
maintain this deposit of securities was
in 1903 and that therefore they
post and may withdraw 1t.
The main reason why the company
wishes to withdraw is to escape he tax
alton of its securities by the county
commissioners of Shawnee county. The
securities are held here in this county
and are amenable to taxation as per-
sonal property. The securities are tax
ed at a rate of $3.50 for every hundred
dollars on a basis of $50 600. This
to a yearly tax of S2,515 and
by Withdrawing its securities this tax
will be escaped.
Judge Pollock in suggesting the COM
promise stated that he did in order to
obviate the feeling of uneasiness which
might possess some of the insured in
the old Kansas Mutual who might feel
that they were not as fully protected
with the securities withdrawn and also
to obviate the matter of taxation to
which the insurance company objects. |
of course this compromise leaves |
undecided and purposely SO the question
Of the right of any of the insured in |
these bonds" said Judge Pollock. The |
which Judge sPollock gives
Is that a decision which would be based |
upon the evidence so far produced |
would be against the state and in ia !
vor of the insurance company.
II would a great deal rather act on !
an order of the court than upon my
own personal decision said Mr. Barnes |
This would indicate that if the court |
should issue an order following a fur |
Their hearing Of the case directing the |
insurance commissioner to accept |
bond that this arrangement might be /
entered into.