, 1880-04-27
THE COOPERATIVE FOLLY.

What the Sfnto &HHlrnstcc Ohfclnts OF
Illinois and New ] Jersey Think OF tho
Assessment" Companies.
Believing tl!at NIL so-rallel llfe-insuranco
combnnies organlzc1 upon the "corpera-
tive" or assessment" " plan are fonltsll IN
theory, and impossible Of continuous success,
THE Tribune has addressed letters Of III
auiry to prominent Insurance officials of
varlous States, seelGpg tho benefit of their
Information aud experience In tho matter.
The replies are uniformly co,remnatory Of
tho system, and societies. 'rllo Hon. T!lo,nas
y. Needles, Auditor Of Illinois, writes It's fol-
lows: -
4 WESTERN OPTICAL OPINION.
Estate or 1r.1Yols, Aunrren's Orr!cE,
1llGllt csDpGlntlyu ltfe-inBurancc, rs offered
by tito various mutual atd societtcs now In
operation, is u1lsountl and fallaci0us, full Of
errors, and snru to bring tllsappotatMient md
When tho benevolent feature Is attached
to secret societies ulld organizations Iii which
there nre other and paramount Interests to
bind tle members togsther, It may no slo,lbt
be productive of grelt good ~ rendering as-
ststnnce in misfortune and relieving the fntl-
ilies Of deeeascd ,neEibers;. hut ILLS cannot
tuke tho plAce or perform tho Office or life
Insurance. proper.
"trho Independent cooperative societies,
howuyer, 'lo not possess even this element Of
cohesion. THEY nru ln0ney.l,lnkil,E CONCERNS,
tntonletl to lenailt their 0rlginntnry, officers,
nMl lhN1lnEers, Wltflu tllotr reAl 0tjcct IL dis.
gnisMl under various benevolent md mutual
nid titles. Their membership consists Of pur-
SONS who l,Ryo no community Ut Interest,
WHO nre net acquainted with o,ID another,
WHO lre not actuhtef by benevolent niotlyns
rs IT. h gaveraet d saialy % by ss saif"tsrsst 0' WHO
"T]ic hond of union l. 30 weak that, should
tho societies full to fulfil tho lnrgu promises
OF their agents, Should tho mortality increase
It'll tan n Ws antsiaa a, t ,ors ,otS rpa @
TINT It dies mi pny To remain MID there Is no
loss attending withdrawal they will drop out
In larHo numbers. The tndcllh[teness Of tho
s"trGs t,naHs to stFsprsssn%1s as a arge
bUnellta tn case of ,leattl, depending upon tho
voluntary contributions pf a1l tlNcertAln nllnt-
her OF ne!!,bela, lre prntuctlye dfdlssntIsfac-
to an aisapol}n1tont, Tnsre re MT te
various orders, ,socIeties. and brotherlluotls
to h0lt! the members together, and these So
cletles do hot have tue obllgatIons OF u deli
nlte mutual contract, as III regular 1tfe-in.
withdrawals.
"'rhe success OF these societies cannot bo
predicatea upon THO experiences Ut Il few yealR.
lilo rath at mortality chauYes from yenr tn
vnl,ccs, a1d cniln0t lp ntfsat by the accession
OF nuw members; and, III consequence, tho
rate OF mortality IL certain t0 lnuErnse. The
assessments tNr death losses HO0n heepNie n
burden Which the members, disappointed In
their expectations OF chenp Insurance. will
~ longer hear. Illose Wlla are insllrablo
Will withdraw and seek insurance elsewhere.
ThNsB WhOse health llAH hec01ne Impaired,
Altd W!l8 lr0 no longer lNAnrab!e, will hn
compelled 70 remain or fDrcK0 thu benefits ut
my kind of Insurance. The result IL, the i'll
solyency Of ths soclety. atl.t !rrelmsablo lnss
r. tll1se wt0 ara inDst In med OF Insurance.
inI
ur accumulated reS1ryN, tllosb associations
cannot fnlllll ticlr promises OF cllunp insllr-
A,,co md largo benefits,
:" l do not regard uioSn associations nS fit to
ha compared III paint ut responsibility AEnl
1!kallh0Otl 0f fulfilling their agreements with
the organizations founded upon the S1.lnlltltc
application OF caretully-Colle4ted statlstlcS,
WtiOse ability to pay the last surviving policy
!ollor re,ua!us, should all the others with
draw.
~ have no statistics to enable me to do
ternIinn thu relatty0 'chcap!ess. Of tic twn
plNts, for when tie, clement Of certainty Ut
tplcllts IL wanting, ~ In the case Qf cu1pesa-
ttyo llfe-lnsurAlc0, 1t u VallleleSs, and con-
slter 1t dear at my prize.
cnit!l0t Sets WheroiN therc Is less Opp0r-
tun!ty for dishonest management ln Tits
syst9m than IN thatof regular !tfe-lNsnrance,
managed with less honesty,
VT, .. NEEDLES, Auditor +. A."
AN EASTERN OFFICIAL OPINION.
From Now Jersey, tho State where law Is
Viewed atd executed With Old-tashiolaed c0ll-
scaenttousllcss, comes the subjo!ned ofticial