The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1885-03-03
Proposed Legislation COncerning Aid and
Relief Societies.

ReAIet S0chetAes.
To the Editor of the Press:
The assessment plan, whereby these socis-
ties afford life insurance to members thereof,
has been successfully in vogue in England for
more than hundred years. In the United
States 1t is OF modern growth, and in its earli-
est days here the general ignorance and mex
perience, concerning the system, combined
with defective methods In management, re-
suited in lack of success in some instances
that weakened public confidence, and this re-
suit has been prolonged and fostered by some
of the wealthy life insurance companies, in
their constant endeavors to so hamper the as
ssssment associations as to defeat the success
OF the system that may reduce the cost Of life
insurance.
Our Legislature has been asked to grant
charters to two associations, both composed en-
tirely of our own citizens, whereby they may
be best enabled to extend to all who wish to
avail themselves of the assessment plan OF life
insurance, the opportunity to do 80 by Joining
home society, without being compelled to join
secret organization to accomplish this.
A most persistent attempt to defeat this OBJ
jecs was instigated by the Union Mutual Life
Insurance Company, whose attorneys have
been constantly at Augusta during the session
of the Legislature, in order to avert all legsla
tion likely to have any bearing on the interests
of that company.
The first move brought to public attention in
this attempt was the early introduction Of q
bill entitled can act to provide for the organi-
zstion Of mutual relief associations" drawn by
an attorney of said insurance company. This
bill imposed obligatory restrictions such as
have no precedent in the laws of any State,
such as are entirely inapplicable to and incon-
sistent with the practical workings Of the as
sessment plan, such as are not imposed upon
any home life insurance company doing busi-
ness by the premium method, and which was
designed solely to so hamper the assessment
plan as to "bottle it up II not actually kill 1t.
Until this bill SENATE, No. 32,l appeared, no
legislation had been asked for, and its object
has been furthered by the general lack Of
knowledge Of the subject. So far from being
asked by or in the interests Of the public, or
being an act to 'provide" for the better regu-
lation Of the business of relief societies, the
bill was solely designed to impede and
hamper the success Of any plan whereby our
people could avail themselves OF this form OF
life insurance without applying to foreign cor
porations, as they are now doing.
As the matter now stands there are many
citizens of Maine availing themselves Of the
low cost life insurance afforded by the ASSESS
ment societies, and those who are not members
of any of the secret organizations must apply
to the associations Of other States, and very
many are doing this.
Life insurance by the assessment plan is fos-
bokou Ny VIC laws "a Ill Otdboog anu lilo uumDtE
Of persons thus insured greatly exceeds the
number Of high premium policies of life insur-
ance in force.
This public favor and Endorsement Of the
plan is a practical refutation Of the extreme
statements made in disparagement
The origin of the proposed legislation in
Maine is an explanation OF the extraordinary
features of the bill first presented "a bill with
provisions which have no precedent in this or
any other State in the Union.
The hill iunn0aoa raOuiaf fiona N
on any home company that may attempt to
carry on business by the assessment plan here
after, and yet grants special exemption to .
foreign corporation, besides various local so
cities.
The whole matter may be summed up in the
statement that well managed life insurance, ty
either the high-cost or the low-cost plan, Is Of
great public benefit, and ought to be fostered
and not hampered, and our people should have
every possible privilege extended to them for
availing themselves Of either, If they so desire.
Let home companies organize under charter,
and our legislature will have opportunity to
acquire an intimate knowledge Of the business
to be done and the persons to control its man
agement, such as could not be acquired con-
corning organizations formed merely under a
general Law.
AS to a reserve fund, all the best managed
societies provide such a fund, although not
obliged by law to deposit it out of their con.
troll.
The real value of such fund depends upon
it being held in readiness for immediate use at
any time for application to the prompt pay
ment of deficiencies in death assessments, and
if not thus available a reserve fund would be
Of little benefit to the dependents of deceased
members. The Legislatures OF other states
have recognized this fact, and have permitted
but not made obligatory the accumulation and
deposit Of such fund.-
A bill lately introduced by Senator Young
has some excellent features as regards provis-
ion for reserve fund, which shall be an &C
cumulating one to be held for application in
contingencies Bnt provision should be made
to render such a fund Immediately available at
any moment, whenever there is a balance
needed, after assessments are made, to make
up the fall amount of death claim.
Better than any general law would be the
restriction afforded by charters, for instead of
any persons whatever forming a corporation
and proceeding forthwith to do business, the
asking for charter brings the persons and
Of the Legislature, aud irresp0nsIbqe aPb6p5dnS
would thus be excluded, and the matter be
confined to the substantial basis of capable
and responsible management. P.