The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-06-21
Attorney General Issues State
ment ON Society Merger.
Hopkins Holds sS5O,OOO Expen-
diture Unwarranted.
LODGE WOULDN'T EXPLAIN
He Says Officials Refused To
Tell Where Money Would Go.
BreyfOgIe Was To Get s12S,OOO
of 1t, He Said.


relative to his stand in blocking the
attempted merger of the knights and
Ladies of Security and Fraternal Aid
Union in which he asserts it is his
opinion the expenditure of $350,0O0
for the merger would be a fraud upon
the society. Hopkins cites a similar
merger that was attempted in the
state of Illinois and stated that John
w. Breyfogle who was to receive
$123,0O for the Kansas merger, also
held a contract with the Illinois organ
izations and that the courts set aside.
this contract as being fraudulent, and
unwarranted. Hopkins statement Is
as follows:
Hopkins Statement.
My attention has been called to a
statement concerning the proposed
merger between the knights and
Ladies of Security and the Fraternal
Aid Union, published during my ab-
sence from the city. The facts in sub
stance as presented to me, are as fol-
lows:
Two months ago the proposed con-
tract was submitted to me by the Of
ficers of the Knights and Ladies of
Security in company with the super
intendent of insurance. I asked them
what 1t would cost to make the mer-
ger. They told me $350,000 would be
expended. 1 asked them for a de-
tailed statement showing who was to
receive the money. They refused to
give me such statement. 1 later
learned from Mr.. John w Breyfogle
that he was to receive personally at
least S123,00 out of the sum. A copy
of the proposed merger contract sub
mitted to mo made no statement of
the amount of money to be expended,
nor did it provide for the payment of
any money for effecting the merger
officers of nj nd
dies of Security have at all times re-
fused to dfvulge to me how the ball
ance of $227,000 was to be spent or
who was to receive it. AT that time I
suggested that If they would submit
the entire matter to the membership
including the expenditure; of the
money and who was to receive 1t, and
If it was approved by the membership
of the society. knowing all the facts.
that I, of course, could not then have
any objections. The officers of the
society declined so to do.
Cites Similar Case.
In a similar case to this one, de-
cided in Illinois something like a year
ago. it was held by Judge Foeu. the
presiding judge, that the consumma-
ton of such contract was a fraud on
the membership of the society, and an
expenditure in that case of S22S,0O0
was unwarranted and fraudulent, and
was enjoined by the court, and in that
case the court set aside and perpetu-
ally enjoined a contract of John w.
Breyfogle as being fraudulent
On June delivered an opinion to
the superintendent of insurance in
which I stated that the expenditure of
$350,000 of the funds of the knights
and Ladies of Security by the officers
would be a fraud on the membership,
and on the same date requested the
officers of the knights and Ladies of
Security to cancel the contract with
Mr. Breyfogle because the same is. in
my opinion, unconscionable, and If
consummated would constitute a fraud
on the society. 1 am advised now that
the officers have acceded to my de-
rnand in this regard and have Cancelled
the contract with Mr.. Breyfogle.
Says Pressure Was Used.
Since my opinion was rendered to
the superintendent of insurance on
June. 4, great pressure has been
brought upon me by certain so-called
business interests in an effort to get
me to allow the merger and distribu-
ton of the $350.000. It was also sug-
gested tc me that if 1 would permit
newspaper which has been finding
fault with my department on various
occasions would LAY Off in its adverse
criticism.
RICHARD ]. HOPKINS,
Attorney General.
1.-THE last sentence in the attorney
generals statement seems to be a ref
erence to the State Journal. inasmuch
as this paper criticised a number of
the attorney generals actions recently.
among them his course in causing the
dismissal of case against a wealthy
Wichita man who was arrested for
| transporting liquor.
In connection with the merger. this
paper has absolutely no interest in
/ the matter any more than any other
citizen. The fee proposed to be given
to Breyfogel. If the merger were con-
sumInated, seems not only excessive
but outrageous.
| The State Journal published the
statement of the Knights and Ladies'
| of Security in which they criticised
the attorney general because while he
objected to a large fee. he offered no
counter proposition that might result
in the merger. If the members of the
! two orders believe the merger good
thing for the members. it ought to
tious and economical manner possi-
pie. II the merger Is d DdQ tIllHs IL
! ought not to be consummated.
This papers idea is that under con-
ditions brought about by the war and
the influenza there are likely to prove
necessary other mergers of this ma
/ ture, and the attorney general should
not be a party to the prevention of
these mergers unless there be fraud
or something unwarranted or most
undesira BILE in the method
Mr.. Hopkins's assertion that it was
also suggested to him that. if he
Iwould permit it certain newspaper