Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1888-02-01
THE A. O. U. W. AS AN INSURANCE
ORGANIZATION.

THE A. o. U. W. AS AN INSURANCE
ORGANIZATION.
AN ADDRESS BY w. II. MILES TO
MORRIS LODGE A. o. q. w.
Since the establishment Of the
United States, as government, szl
stock companies have been chartered
to do life insurance business, the
oldest of which is but 48 years old.
Yet at the present day, but A OF these
S21 are in existence, TIA having SIM
ply dropped out of business.
I have heard this assertion, which
/ am not able to verify, yeti believe
it to be true, that ten years ago, as
sessment insurance organizations
carried only about 40% of the amount
of insurance that old line companies
carried, while to today old line COM
panies carry but 4O% of the amount
carried by assessment associations.
This, as I said, l am unable to verify,
not having access to statistics bearing
upon this point. And by the way,
brethren. the phrase "old liners" is q
pseudonym, as the Oldest stock in
surance Co. in America is but IS years
old, while assessment associations
have existed in England for TO years,
but from the rapldity with which
assessment insurance has gained
ground in the last Is years. I have no
doubt whatever of its truth, unless
the PERCENTAGE be, perhaps, too high.
will refer to this further along.
Life insurance has now come to he
recognized by thinking men as far
more essential to those who have
families than fire insurance, (and that
no prudent man will be without.)
The question is not "shall we insure
our lives? but in what company or
association shall we insure? (Statis-
ties show that the best thinking and
business men of our country carry
over 400, 600. dollars insurance upon
their lives in assessment associations
1t is estimated that but one building
in twenty is destroyed by fire, while
history records but two persons, whose
existence terminated other than by
death, and the record does not state
whether any life insurance organiza-
ton had sufficient interest in either
of them to contest the payment OF
their policies. In fact, I think that,
to all present intents and purposes,
both Enoch and Elijah are just as
good as dead men.
The question naturally arises,
sThen why don't all men insure their
lives since the chances are as
20 to- ?" There are two principal reas-
ons: One is the high rate charged by
the 50 called old line companies, thus
taxing the great laboring classes,
more than their average income can
afford. The other and the greater
reason is the lack of confidence among
the people in insurance companies
This slack of confidence" arose under
the administration of old line COM
panies, when they had full sway and
little or no opposition from fraternal
organizations, which were then at
tracing the attention of only the
Masons and Odd Fellows, and the
more thoughtful and careful OF the
business men of the country, who
were seeking some safe and reliable
plan of insurance. This opposition
has aroused the jealousy of the great
mSnopoly of old line companies, and
prompted them to spend large sums
of money in publishing bitter and un-
warranted attacks upon fraternal and
mutual associations. Northumberland
ing this abuse and ribaldry, they have
quietly but rapidly assumed mann.
moth proportions, ana advanced
steadily to the high position they
now occupy, and to-day these assess
ment associations are furnishing
millions of people with the same pro-
lection, at about one fourth the cost
exacted by old time companies, and
the relative amounts of insurance car
ried by mutual association to that OF
old line companies are indeed an
tiauitles, relics of the past generation.
said moment ago that assess
ment associations furnish insurance
at one fourth the cost of old lines. Let
us compare rates of old line COM
panies with the rate of the A. 0. q.
w. for 1886.
The average annual premlmn for
men between 81 and so years of age,
1.-THE limitation of age in the A. o. U.
W. is $500 per thousand dollars,
upon the life plan. Now in 1886, out
of membership not to exceed 1885,
s54,-1, 4sl died. Now let US be fair
and assume that the average member
ship was not at any time more than
1874, 4O3, the number In good standing
at the end of the year, and we have
the average mortality of to 127 or a
cost of $7.S7 per 100000. This re-
member, is taking an average OF
the entire Supreme Jurisdiction
which takes in the states where diff
ferent lung complaints are SO pre-
valent ana consequently the death
rate higher. This rate gives us In Min
nesota a safe margin to figure upon.
The fact is as you all know, that IN
1887 the cost in Minnesota was but
$3.50. Other fraternal, and simply
mutual associations compare quite
fayorably, but so far as I have been
able TO learn not nearly SO well as
our own beloved order.
Let us look for q moment at our
present strength, and unparalleled
growth, since our birth twenty years