St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1890-07-24
ASSESSMENT INSURANCE.

representatives of Massachusetts fra
ternal benefit associations have been
canvassing this town in order to es-
tablish lodges here. One company
promises $1,000 in seven years at a
cost of about $500; the other COM
panv holds out the offer of $500 in
FIVE years at an estimated cost of less
than one-third of that amount. Be
fore the people of ST. Johnsbury be-
come carried away with the specious
figures of their silver-tongued ora
tors, who are expected here next
week, we wish to call their attention
to few facts and give them an I'M
published bit of history.
The first order of this kind in
Massachusetts was the Iron Hall, an
organization founded in Indianap-
oils, that promised $1,000 in seven
years for about $500 paid in. The
order grew rapidly in Massachusetts
until in 1887 it had about 10000
members. Insurance Commissioner
Merrill began to investigate its
workings and saw the sort OF morals
and honesty involved in the scheme.
But the other side was active and a
bill passed the Massachusetts Legis-
lature granting charters to all such
fraternal orders. Gov Ames had
promised to veto the bill, but upon
being told that the 10000 members
of the Iron Hall in that state would
defeat him for governor next term,
an argument that had been effective
ly used upon many members OF the
Legislature, he signed the bill. Gov.
Ames afterwards explained his action
in the following letter:
II assure you | have the best wish
esfor the success of the order. When
the bill to legalize its (the Iron Hall)
business in the commonwealth came
to me for revision, l was prejudiced
against the measure, but after in
vestiga ton. | was satisfied that |
proved it."
This is unpublished history. Since
the bill was passed there had been
organized in Massachusetts 46 cor
porations of this character up to
May 1, 1890, promising, upon the
contribution of a comparatively in
significant sum in assessments, the
payment at the end of from one to
ten years of a large endowment.
One, the Royal Ark" pledges 800
in ~ months and its membership is
growing al a tremendous rate. 1.-The
NAME" says Mr. Merrill, was sure
ly not chosen from the fact that, like
its great prototype, only a few will
be taken i'm Yet another has just
been started that promises 500 in
six months
Some one asks how can they give
So for ST? The scheme looks very
plausible on paper, but as ex-con-
gresham Horn says, at won't
work" AS long as the membership
of these organizations increase just
SO long the companies will last The
enthusiasm must be kept up at any
cost and new lodges formed con-
stantly to protect the old ones. If
man joins a seven-year order and
Il = e
years he not only takes out what he
has put in but the assessments of
expired. And these in turn reap their
benefits from still newer members.
A pertinent inquiry arises, How long
can this repeating process go on?
Well, the members of eight companies
in Massachusetts found out last wear
that this process had ceased in their
organizations and the largest divi-
dend paid by the companies that
were closed out was 20 per cent on
the 100 per cent promised. Who'll
be the next?
These mushroom corporations defy
the laws of the multiplication table
and all known rules of finance Be-
fore our citizens invest their hard
earnings in such wildcat schemes
we ask them to use a little common
sense and then see if they care to risk
$500 in order to be qualified to gain
$1,000. How the promises of these
corporations are to be realized no
one of their promoters has under
taken mechanically to demon
Strate.