The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-10-30
Brewster Asks Receiver for
Farmers Life ms. Co.
Anchor Life Company Also In
solvent, He Says.
PETITION FILED IN Topeka
Farmer Company Management
Reckless and Careless.
Some of Directors Dishonest,
the Petition Alleges.


solvent; that its total assests are in
sufficient to reinsure its risks by
s197,Ss7.S0, and that it's management
in the past has been incompetent,
reckless, careless and on the part of
some of its directors, dishonest and
fraudulent, S. NJ. Brewster, attorney
general, on behalf of the state of Kan
sas. has filed a petition in the office
of the Shawnee county district court
asking that 4 receiver be appointed
for the Farmers Life Insurance COM
pany of Colorado and that the COM
pany be forever restrained from doing
business in this state. The petition
also asks a receiver for the Anchor
Life Insurance company of Kansas,
which became insolvent and entered
into n contract with the Farmers in
December, 1914, to reinsure all its poll
cies in Kansas, which amounted to
not less than s1,300,000.
Bennett r. Wheeler, a Topeka attor-
ney. was appointed by Judge George
H. WhitcomD to act in the capacity
of receiver for the Anchor and for the
Farmers business in Kansas. The
headquarters of the Anchor which has
done no business since 1914, we're in
Kansas City
Assets Have Been Padded.
Farmers company has been padding"
their assets All figures are taken from
the last report of the company made
TO the superintendent of insurance.
April so. 1918. They show that since
the company's organization iilS 1911,
the total receipts have been s4,534,-
637.05. The sworn statements of the
company show that the dishursenn -nts
up to April so. 1918. have amounted
to s2,5s7. 1859, and the company
a. "a
judgments. stocks, bonds, notes, cash
and bills and accounts receivable of
the essential value as assets to repre-
sent the difference of s1,946, 1886.
Deductins items not admissible and
adding non-ledger assets which the
company claims 10 have, makes a to-
tai of s2.Ol6.S54.3S. which is the total
amount of assets the company claims
TO have.
Brewster. however. claims that the
company's real estate values have
been overestimated by $206,0S3.37;
that their mortgage values are worth
sos, less than represented; and
that the company has no right to
show as an asset a judgment of $4e,-
ass recovered on account of its pur-
chase of the stock of the Anchor, for.
which an appeal is now pending in
the United States circuit court and for
which the company has executed and
delivered bond to refund the money
should judgment be reversed. These
items totaliing $34S31123, when de-
Quoted, leave the total assets of the
company not in excess of $1.66S,O43.15,
Brewster asserts. The total liabilities
Of the company as shown by its books
and reports. including the necessary
statutory reserve TO protect out
standing policies but not including it's
capital stock liabilities, amount to
$1.S65,s2O.95, making the company
short s1s7, S77So.
All Reserve Conc.
Brewster charges that, on account of
the reckless manner in which the
company was run, all of the S943,-
562.4t contributed by the stockhold-
ers as we'll as part of the reserve
which should be held by the company
to protect outstanding policies, has
been dissipated and lost. He asserts
that the real estate in which a large
part OF the funds are invested is not
easily salable even at the figures he
has allowed and that it produces prac->
loans, he says were carelessly and
improvidently made and the interest
now in default, he asserts. exceeds
$4,000, or more than Fl per cent OF
the value of the mortgage allowed by
himself.
In December, 1917. Brewster says.
an examination of the company
showed it's total liabilities, including
its capital stock liability. to exceed its
assets by s573,663.7S. A meeting, he
says. of the company directors and
the insurance commissioners of Kan
sas. Colorado, Nebraska and Texas
was held. at which a demand was
made upon the directors that the COM
pany be declared in an insolvent con-
dition and in order to. save the COM
pany from a receivership, he says. the
commissioners allowed a tentative in
crease in values of $143,366, but
charges that since that time the com
pany has forced the secretary and
pointed under the agreement to re-
sign and has raised only 100000 of
the $275,0 900 which it agreed to raise
to cover deficits.
Contract Violated.
Moreover, he declares, the company
has failed and refused to abide by its
contract of reinsurance in regard to
certain Anchor policies.
Brewster demands that the state
treasurer and superintendent of insur-
ance be directed TO turn over to the
receiver all securities deposited with
them and that the receiver procure in
some responsible insurance company
the reinsurance of all policies written
by both companies in Kansas and that
the charter of the Anchor be forfeited
and the corporation dissolved
Senator Glenn, Vice President.
Former Governor E. A. Ammons of
Colorado is president of TIE Farmers
and w. II. Glenn of Tribune, who was
a candidate for state senator of Kan
sas last term, is second vice president.
Officers and directors of the An
Choir. according to the last report
made in 1913 are: w. F. Shearer,
Kansas City. Mo, president; John A.
While. Kansas City. Mo, secretary and
treasurer: a. c. Root. Kansas City,
Kan, vice president; J. NJ. Emery, ac-
tuary; H. NJ. Keevil, Kansas City, No !;
f, Clark, Olathe. Kan: Oscar Bennett,
Howard: E. B. Schermerhorn, Galena
L. L. Uhl, Overland Park, Kan; D. B.
Moore, Usage City.