The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-06-20
Attorney General Prevents Fra
ternaI Insurance Co. Plans.
X. and L. of S. and FraternaI
Aid Union Would Unite.
7 MEANS MUCH TO Topeka
Would Give This City Largest
Organization in World.
Hopkins Objects to Big Broker
age Fee Demanded.

Because he refuses to approve an
| agreed plan and has sidestepped an
invitation to offer a substitute plan
which he would approve, r. ]. Hop
kins, attorney general, has for the
present at least blocked a merger of
the Knights and Ladies of Security of
Topeka and the Fraternal Aid Union
Of Lawrence. The consolidation would
have made Kansas the home of the
biggest and strongest fraternal organ
ization in the world and would have
given Topeka the national headquar-
ters.
Hopkins's refusal to act in the
merger matter has in the Judgment
| of persons in touch with facts, threat
ened destruction to a development
| program of vital concern to the fra
| ternal organizations. At the same
time the attorney generals action has
! perhaps held up the bringing of nu-
merous fraternal insurance officials
and employees to Topeka and has
made uncertain the construction of a
| general office building and the maxi
/ ing of other improvements. The at
torney general refused to approve the
| merger plan on the claim that the
proposition probably meant the ex-
penditure of $S50,0o0 in expenses and
| fees.
| For more th;-n a year the merger
plan has been developing Several
weeks ago it reached the stage where
officers in charge of the affairs of
both fraternal insurance organizations
| agreed to the plan of consolidat ton.
The question of approval was then
checked Up to the attorney general.
He found no objectiors to the plan to
! merge the two companies. His OBJ
lection 5as in the expense accounts.
| Objects To Brokers' Fee.
'If two fraternal organizations de-
| sire to merge with the sole purpose of
| benefiting their organizations by CO.
| alition of strength. it is good" Hop
kins stated. But see no reason for
| a big brokers' fee"
| Hopkins asserted that John Brey-
| fogle and associates of Kansas City
would receive about s12s.000 for their
services in connection with the mer-
| ger.
.Topekans in touch with. the merger
plan are said to be generally resentful
toward the attitude of the attorney
/ general in standing in the way of the
fconsolidation of the two big orders.
Their resentment increased when Hop
kins declined to approve the merger
proposal and refused to make a state
ment as to an expense which he would
approve.
According to statements in Topeka
today the merger expense would have
been absorbed in reduced operating
expenses of the first year of the con-
solidation. Not only is Hopkins said
to have been assured that the total
expense would be absorbed in twelve
months without penny of expense to
/ policyholders, but that the rates to in
| Surers were not to be increased. Many
interviews are said to have been had
with Hopkins during the last several
weeks. In spite of the fact that these
matters are said to have been present.
ed in the strongest possible manner,
Hopkins would neither approve the
plan nor offer a substitute.
Following the interviews with off
GERS of the organizations and persons
interested in the merger. Hopkins is
said to have called to Topeka Kan
isas City newspaper man. The Kansas
with Hopkins in which he took full
credit for having blocked a trust fee
grab"
1t is probable that the action of the
attorney general in the Knights &
Ladies of Security and Fraternal Aid
Union merger will meet with counter
action on the part of officers of the
organization who saw in the plan an
opportunity to materially reduce the
cost of fraternaI insurance. The course
of these persons has not been publicly
stated.
Meant Much to Topeka.
. Had Hopkins either. approved the
meager plan or given counter plan
which he would sanction, Topeka
would have landed the biggest frater-
nal organization in the country. Plans
for seven to ten story office building
at Seventh and Kansas avenues have
been frequent dreams of knights &
Ladies of Security officers in recent
years. 1t was practically assured tha,
this building would be constructed and
several floors used for office space fol-
| the consolidated companies. Exten-
) sive improvements of the Security hos
pital and farm west of Topeka were
: said to he under consideration with
: the prospective merger.
One person in touch with the merg-
er plan stated today that every penny
of expense in the transaction would
have been absorbed in the first yeaI
thru reduced expense of operation. Ir
: addition to this item of economy, the
clerical force necessary to look after
the interests of increased membership
Continued on Page SKI