The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-04-01
HE IS AROUSED.

Continued from Page one.l
National Mutual. Grain Growers'. Home
Mutual. Kansas Mutual. Union Mu-
tual and Wichita Mutual. retrenchments
in salaries and commissions are de-
manded.
Deplorable Conditions.
The last annual reports made to
this department disclose deplorable
conditions in the expense Of manage
ment OF various mutual hail insurance
companies in this state" says Lewis
In his letter. Under the law these
companies are presumed to transact
their business In this state for the
benefit of the membership and not for
prof1t. The investigation Of the an
nual statements of the majority Of the
nail companies reveal that the greater
part OF the premiums paid for insur-
ance has been dissipated in expenses
Inc condition presented by these re-
ports are such as to warrant the de-
mand on the part Of the interested pub
lie that immediate reforms be made.
VIII Urge Remedy to Legislature.
I'm my opinion If the annual state
lnents OF the various hail companies
show no improvement in regard to ex-
penses during the year 1914, the legis-
lature might very properly be called
1Dcn to adopt remedial measures and
any action by the legislature might
t~SeAAS AZ AID repeating the law OF
amending it in such a manner that
the compensation to officials and
managers will be so meager as to be
unattractive to the business man of
ordinary ability.
In view of the foregoing, I feel 1t
m; duty to undertake to correct the
evil of extravagances as far as lies
within my power. Therefore, as q
pledge to the department that the
business tor the year 1914 will be con-
ask that the directors Of each and
every hail insurance company to
whom this circular is addressed, meet
and fix the salaries and other COM
pe nsattons Of the various officers and
managers for 1914 and certify these
salaries and other compensations
which these officers are to receive to
this department.
Warning Is Given.
warning Is hereby given that COM
parties continuing to pay the extrayax
CANT salaries and commissions to Of
ficfals as In the past, will not be grant
ed q certificate Of authority and fur
thcrmore, a salary greater than a
mere nominal one paid to an officer
engaged In some other line of business
and not continuously and actively en-
gaGed in the business Of hail insur-
ance. will not be approved. Unless
substantial compliance is immediately
made to the foregoing. certificate of
authority to the company or com
panies failing to SO comply, will be
withheld"
Back of this letter is the record ri
exYense Of operation Of the several
fsas. insurance companies. PERCENTAGE
commissions to agents and employees
by the various companies are shown
| to be as follows:
What the Reports Show.
Central National Mutual. 1882 pei
4
ter's Hail. 2O.07; Home Mutual, 22.67;
Kansas Mutual, 35.45; Mcpherson
| Hail, 2O.14: Union Mutual, 41.67;
Wichita Mutual. 1888.
For salaries and clerk hire. the
companies pay the following per cent
age Of their net premiums:
| Central National Mutual. sos;
Grain growers. 1884; Harvester's Hail
1858; Home Mutual, 5000; Kansas
Mutual. 21.48; Mcpherson Hail, 491;
Union Mutual, 1912; Wichita Mutual
| 1888.
| Total expenses except losses, re.
funds and borrowed money repaid, ii
the following per cent Of the net pre-.
miums:
| Central National Mutual, e2.s7;
Grain Growers, 1898; Harvester,
Hail. 44.O5; Home Mutual. ss.0s; kan
sas Mutual. 1914; Mcpherson Han
1882; Union Mutual, 69.57; Wichita
Mutual. 1922.
| The Mcpherson Hail Is shown to be
operating for Ii per cent less than any
other company in the state and or
practically the same rate charged by
other companies. 1t figures for op-
Grating expense are 50 per cent below
| those of the Home Mutual. Still the
Mcpherson Hail is carrying the larg-
est amount of admitted, assets of any
mutual hail insurance company in the
state. It is to readjust these irregu-
! larities that Lewis today started his
crusade against the mutual hail COM
panies.
| In an annual report for 1913, the
| companies showed assets as follows:
| Central National Mutual, $11,966;
Grain Growers. $2.304: Harvester's
Hail. $14.96S; Home Mutual. $3.774:
! Mcpherson Hail. $99.137: Union MI
tual. $11,356; Wichita Mutual. $40.
nano0Alo 0rro nl0rllnF