St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-08-23
HELD UP BY HARVEY.
The Aetuary Sustains the
Educational Endowment
Association,
But Holds the Rate Premiums
We're Too Low at the
Start.
A Family Row Over an Elope-
ment That Went I'm
forgiven.
Both Sides Speak on the Sub
ject Of the Eight-Hour
Day.

Insurance Commissioner Bailey and
August F. Harvey, actuary of the insur-
ance department of Missouri, have ex-
amned the financial standing of the
Educational Endowment Association of
Minneapolis. Their report was issued
yesterday. Insurance Commissioner
Bailey says:
can examination of the Minute books
showed them to have been well kept,
and that the directors of the association
have been interested in its management
by faithful attendance upon their
meetings. Its financial affairs are
clearly set forth in it's books of ac
counts. and there is no appearance of
any but an honest endeavor to make
the association success in its partlcu-
lar business. A mistake was made at
the outset IN the too small rates of pre-
MUM, which fact Mr.. Harvey sets forth
in his report"
Actuary Harvey gives the financial
standing of the association of the asso-
citation July 81, 1890:
Assets
Stock in the Home Savings and
Loan ASSOCIATION ....S24,6oo W
Cash in bank on &C
count of reserve fund. 81, 2l3 60
Cash in bank OH ac-
count of expense
fund .......... -. :. 1858 50 1897 10
PrOmisSOry notes.. ......... 49,. 800 90
Amount overpaid on tax account. So "a
Total .S3l ,OO5 43
Liza abilities
Permanent reserve fund 49,. $50 600 O6
EndOWments matured, Glass A,
and ordered paid. ............ 4,077 rs
Endowments. Glass B 49,. 49,. 212 80
Endowment fund, Class c 49,. 1854 81
Mr.. Harvey finds the income of the
association from its organization has
been properly accounted for. The as
ISOLATION was organized in 1883, and
was reOrganiZed under the assessment
laws of this state in 1885. Its business
is that of providing an endowment-25
cents a day from date of certificate until
the beneficiary attainS a certain age.
The rates have been changed three
times. The old rates proved TOO low by
reason of two unexpected conditione.
The endowment is pure-that is, it is
not to be realized unless the beneficiary
is alive at date of maturity. In esti-
mating the premiums certain deere
ment by death was considered. EX-
perience has proved that that element
was wholly insufficient. Children have
not died to number anywhere near
the expected number. The last and
fourth scale of premiums. June l, 1887,
now in use, was predicated upon the
experience of the company, and seems
to be adequate. Mr.. Harvey continues:
What originally constituted Class A, the
membership of certain date-early in 1887
saw that the plans of the association were
likely to go astray from the insuiflciency of
the premiums. They enacted new table of
rates to go into effect June l, and provided
that members coming in thereafter, if they so
elected be members of a new Glass c.,
which should have all the advantages the
new tables gave them, and not be liable for
possible disasters of the old scales and plans
The members making the classified
ton were acting pro bono publico:
they did not themselves participate
in the new order of thngs-they
chose to arrange matters so that if the exist
selves should be the victims-new members
should be held harmless.
This 'unfortunate'' condition of affairs of
class "A" is simple one. The premiums
paid by its members have proved insufficient.
The endowment fund depleted. and the only
| recourse is the extra assessment provided for
in the constitution of the association. If the
members of the class choose TO hold to their
present contracts, as they nave right, they
will be assessed for extra premiums to pay
off. as far as their payments will go. the GER
tifcates maturing before their own When
their own are to be paid there VIII be small
er number to meet the obligations, and when
the latter certificates mature the persons to
be benefited will be disappointed to a griev-
Gus extent. There will be a practical illus
tration of the case so often cited against the
old form of co-operatives: The last man
will have ''chipped in for everybody else,
and he will hold the hat with nothing in it.
1t is safe to say that if there had been a reas-
enable belief that deaths among children i'll
Minnesota were far below the average of
any other region on this continent or that
the law of average. in respect of lapses
would be so completely contradicted as it
has been, the tables of rates l, 2 or 8 would
not have been constructed, aud the first pre-
MUM scale would have been commensurate
with the facts. The business was at first ex-
perimental-lt was wholly new one; aud it
is not to be wondered at that the mistake oc-
Cured
Mr.. Harvey concluded his report with
the belief that if members of the asso-
| citation act in good faith it can be
brought safely out of its difficulty.