The Topeka state journal., 1911-09-28
.OSAGE SELLS OUT.
Kansas Lively Young Fire In
surance Company Quits.
Sixteen Millions Reinsured in
National Of Hartford.
NO FINANCIAL TROUBLE
Capital and Surplus Will Be
Kept Intact.
Will Be Invested in Some Other
Business Here.
NO FINANCIAL TROUBLE

Inc business of the Usage Fire In
surance company has been taken over
by the National of Hartford and the
assets of the Usage concern are to be
applied in financing a new and gigantic
Topeka enterprise, the nature of which
has not been announced.
That the officers of the new Kansas
Insurance company found business un-
profitable in the present condition is
given as reasons for the retirement of
the apparently flourishing concern. At
the present time the Usage company Is
much the largest plant in the state and
has on it's books operative policies in
ness will go to the Connecticut peo-
pie and with it goes w l. Gard
ner. who has been secretary of the
Kansas company since its incorpora-
ton.
1t was in 1908, that the Usage Fire
Insurance company was conceived and
Incorporation papers were issued for
its operation. Almost from the very
start, it's future was extremely prornis-
ing. Every dollars worth of stock was
floated at par and in the first year of
operation, the company faced the neces-
sity of enlarging it's plant, increasing
its capitalization and its reports show
ed a rapidly increasing surplus.
This new company was not only q
Kansas concern, but in almost every
sense of the word. a Topeka institution.
Its offices were located here, its moro
important officials were Topekans and
the bulk of the capital stock was
owned in the town where the company
had conceived it's birth
At the head of the company was j.
r. Burrow, president Of the Central
National bank who has maintained
the presidency of the insurance organ
ization since its incorporation. As
chairman of the board of directors was
P. w. Goble, of Kansas City, Kan, and
Clyde w. Miller of Topeka, vice presi-
dent of the company The secretary
was w. L. Gardner, another Topekan.
Regardless of the fact that the busi-
ness of the Usage Fire was growing ap-
parently by leaps and bounds, it is said
that the institution was not as profit
able as was desired under the present
conditions
Turns Over Big Business.
Then when it was learned by the
heads of the Connecticut concern that
there was dissatisfaction among the
stockholders of the Kansas company,
transfer of the business The
basis on which the business of the
Usage will be transferred, is not
known The $16,O0O,O00 operative in
surance which the company controlled
at the time of the transfer, is nothing
to be scoffed at and is sufficient to
boost the affairs of the National to
tremendous proportions
1t is announced on reliable authority
that the assets of the Usage will be
kept intact At the present time
Usage Fire Insurance company has a
capitalization of 100000, added to
which is a surplus of 100000 All of
this $500, ,OOO-perhaps more-will be
used in launching an entirely new. en-
terprise in Topeka. The nature of the
new undertaking is withheld by Off
GERS of the Osage- Perhaps not for
several weeks will this matter be given
to the public
At a recent meeting of officers of
the Usage, plans surrounding the
transfer of the company's business
were completed and all arrangements
made for turning over the books of
the Topeka plant. Already the Ma
tional of Connecticut has assumed con-
troll of many of the affairs of the old
company and it is said are now plac-
ing their own agents in charge of the
expirations and renewals of the Usage
There is every reason to presume
that under the present plans the
transfer of the Usage patronage will
be a profitable program for Topeka.
Much Of the old company's business
was confined to the borders of the
state. This means that the National
must increase its operative forces here
and perhaps the early establishment
Of a large local plant to handle the af-
fairs of the two prosperous concerns.
AS to whether the National will i'm
mediately take over the offices of the
Usage in the Central bank building is
not stated, and officers of this COM
pany withhold any announcement of
their plans of future operation in the
state. It is not denied, however, that
Topeka will doubtless become head
quarters for one of the largest branch
offices of National in the middle west.
Added to this assurance that the
National will increase its Topeka faci1-
tiles, is the statement of officers of
the Usage to the effect that their
working capital ana surplus will he
reinvested here. This change should
then mean double outlay of capital
in Topeka and the location of a new
business enterprise that will add to
the growth of the town.