The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-03-18
THEY DO not KNOW
State O1acers Not Certain Of
Culpabllity Of Hail ms. Co.
Attorney General Asks Supt.
Of Insurance to Investigate.

Whether or not the funds of the Ma
tional Mutual Hail Insurance company.
OF Topeka. have been dissipated. and
the reserve fund wiped out. and wheth-
er or not notes from farmers in pay
ment of premiums read payable to the
company. or to c. L. Sharpe. person.
ally. and have been properly account
ed for. are questions which the state
insurance department il preparing to
investigate
John 8. Dawson. attorney general
OF Kansas, has written q letter to I.
8. Lewis. state superintendent OF in
surance. calling attention to a number
of complaints, and requesting an exam
ination of the company's affairs
I'VE do not know yet whether any
thing Illegal has been done by the ofn-
GERS OF the company or not, but we
do know that according to the last Of
fetal statement of the company filed
with this department. the total ex-
penses of conducting the affairs OF the
company. less amounts paid on In
surance losses and returned premiums.
figures out 62.S percentum Of the total
receipts Of the company for the year.
At present there Is no law limiting the
expenses of management In proportion
to receipts. although We recommended
the passage Of such a law at the last
session of the legislature. The expend-
itures OF this company have been too
large.
The only knowledge we have Of the
condition of the company is from its
last report which was hIed December
81, 1913. 1t will be several days before
I can place a special examiner at work
examining the company's books
complaints fiyedfit is alleged that the
company collected nearly $4,000 in
premiums. paid out $4,000 In losses,
and that except. for few doubtful
assets. the bQlAnce was dissipated in
careless man&gement
J. H. White Of Kansas City, Mo-, il
president OF the company. having suc-
ceeded C. L. Sharpe. formerly of To-
peka. about the first Of the year. The
claim Is made that the Missouri man
paid $4,000 to the principal managing
officer of the company for his inter
ests. and yet the company ID q mutua'
concern. Tho attorney general wants
the state Superintendent Of Insurance
to learn what the Missouri man got
for his money. and how he could ac-
quire an interest a Kansas mutual
farmers insurance company. The law
provides that INCH assessments be used
only to pay eses sRnd the actual ex-
penses OF management.
The compapy's annual report for
1918, filed IN the office of the state
ISupcTluIetlQcHt OF fn8UI6QC0s SHOWS
that the company collected In pre-
miuns during the year sac. 1856. and
that the Losses paid. according to the
report totaled $5.377.36. There was
prorated among the 1.5sQ members
of the company $SS.si. Salaries. COM
missions and other expenditures list
ed in tie report amounted to $685.
1884. Colluies16ns paid agents
reached the bia ssof az, 7ko.46. plus
the commisslpns kofng e It's manager
which were 81. 2o0; 8 The president
drew salary Of $f0Gsa year. The
managers salary was $1,000 The
company's resources on December 81.
are given as $18,234.79, of which $11,-
1864 was in bank deposits and mort
gage loans and $6.268.37 in premium
notes. The liabilities amounted to
5000 for claims resisted.
The itemfzed account OF expendi-
lures, aside from the losses paid and
the 1891 prorated among the 1850
members, follows: $50
Salaries and commissions of
agents $1ts ~. ~
Salary of president. ....... 10000
Salary of secretary. $500. 100000