The daily Cairo bulletin. (Cairo, Ill.) 1878-1???, 1880-08-10
AN HONEST COOPERATIVE"
HOW IMITATION LIFE INSURANCE PROVES A
FAILURE EVEN WHEN HoNoRABLY con-

FAILURE EVEN WHEN HoNoRABLY con-
QUOTED.
Correspondence st, Louis Globe'Demecrat
DIES MONIES, Iowa. have noticed
several articles of late in many OF the lead
ing newspapers in regard to the assessment
plan of life insurance, and as we have a
pretty good illustration in this city of the
lack of permanency Of that style of insur-
ance, even when honestly and capably
managed, l thought I would send you a
statement in regard thereto for publication
if you care to publish it.
The Iowa Life Insurance company, was
organized in March, 1874. 1t was started
on the theory underlying the so-called CO.
operative system, viz "that there would be
scarcely any death losses, and consequently
very little money to be paid" Its officers
were James NJ. Shelley, president; c. F.
Davis, VICE president, and James M. Shat
fer, secretary-all citizens of Keokuk and
gentlemen of the highest responsibility and
commercial standing. So far as we
know, the company has been hon
estly and ably managed. The pre-
iudice against the old-line companies on ac-
count of the numerous failures was made
use of, and the plea of economy was also
used to.work up large membership. The
officers, IN organizing their company,
avoided many of the errors that incumber
other cooperative insurance companies in
other words, they adopted some of the safe
guards of the old-line companies, such as
medical examinations, graduated assess
ments, guarantee capital, etc, and to that
extent the Iowa Life was better than most
Of its cooperative companions.
But see the result Witness the want of
co-hesiveness in the cooperative system.
The rise and tall of the Iowa Life is told
in few words, from the statement Of its
officers to the Iowa insurance department,
as follows;
Total No. policies in force Dec. 81, 1874
1856.
Total No. policies in force Dec. 81, 1915
1885.
Total No. policies in force Dec. 81, 1916
5000.
Total No. policies in force Dec. 81, 1877
1909.
Total No. policies in force Dec, 81, 1878
j22.
Total No. policies in force Dec 81, 1879,
457
At one time in 1876 the number Of poll
cies reached G,99S, though at the end Of
the year they had dropped to 5000, as
above stated, In November, 1877, the
officers issued circular to their policy
holders in which they state that "over seven
hundred have lief. the company since Sep
TENDER last, and that 5000 in all have
violated their contracts"
Almost superhuman efforts have been
made to keep the company alive, but it has
reached the average limit of
existence of such companies, and
will soon close its ephemeral eX-
istence. Death losses are coming more
rapidly now among the members who join
ed in 1874 and 1875, as any student Of life
insurance could have toretold, and the
losses among the young and vigorous policy
holders is, consequently, more frequent.
And it will be seen, too, that the effort to
get in 'your blood to supply the place of
those dying is Intellectual This is the
"last ditch Of the co-operatives. Their
claim that they can supply the place of
those dying and lapsing with "young
blood" is theoretical, not practical.
But as economy" is the great watch-
word OF the cooperative apologsts, let us
see how it has worked in the case of the