Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1891-02-12
rnn NEw BENErIcIAh onDEns
How They Contriye to Pay 500 for an
Investment of $50.

| TIE NBW BENEFICIIL ORDERS
How They contrive to Pay 500 for an
Investment of $50.
A representative of THE GAZETTE &
JOURNAL interviewed several persons,
| members and officials of the Fraternity
| Of Financial Cooperation of the Advance
Beneficial Order, and other sick benefit
and cooperative associations which
have recently established themselves in
this city.
Attention has been drawn to them
through the fact that they openly adver-
tise the ability to pay interest at the rate
of 30 per cent This of course is Il re-
maikable claim, II is entirely outside
the eapability of any bona fide loan or
banking business as such Of any nature
whatever tits palpably impossible that
an investment, under circumstances as
they exist nowadays, can yield an in
come equal to half Of the investment.
Here it is that the promoters of the
| organizations referred to come in. They
concede tina. the big returns are not the
| fruits of the Understanding feature of
| the society. The ability TO pay the
large returns depend upon other con-
siderattons. The main bases are--lapses
through non-paymant Of dues, increase
| Of membership, interest and compound
| interest.
In addition the officials claim that
such y thing as The collapse Of the or
ganization is impossible us it Is strictly
cooperative, each member being assess
ihla until all claims are paid,
10 illustrate tie point of the value of
lapscs rs an increment of treasury
strength the officials quote the statistics
of various insurance and assessment
ordeGs,a, IN, every organization very
1 argednumber OF members allow their
policies o. certificates to lapse. This is
a condition of such magnitude that it
| has been taken into account as definite
source, Of profit and the special fact
which meets the inquiry coming from
SO mary directions ''how can you pay
| 500 for an investment Of 500"
The officials of the organization state
that according to last years statistics
the New York Mutual paid oil at the
rate Of SG liability with 81 of new in
yestment; the Equitable Life Insurance
discharged at the rate Of 50 liability for
each 81 of new investment
1t is claimed that the percentage of
lapses is much greater III organizations
of the kind just introduced into Will
mington than in REGULAR life insurance
companies. 1t is stated that the Royal
Arcanum, through the fact Of the large
percentage Of lapses, finds that 81 pays
of so liabilities right along.
l1cPrustential Lie, il is stated, makes
optthst Of $4,000 policies written, II 600
| acttHillytlapsed. And this Is largely The
! direction from which the remaining
1905 Viii be paid.
| .eiggsEl press criticism in Philadel-
| phiM qnls elsewhere roundly condemns
the AtDYe figures and deny that they ac-
count for an ability to pay any one 500
for $50.
Local critics also question tile new
societies. They say that one of the chief
claims of the officials for increasing the
number Of lapsed certificates (by which
| the treasury Of the organization is
strengthened from time to tine) is the
| eXactituae required in the payment Of
the weekly or monthly payments (if
not paid on time the certificate lapses
all previous payments falling into the
| general treasury to the by lawSl then,
that this claim is very hollow one, be-
cause, any person taking up one OF
these $50 certificates, for instance, in
the fraternity of Financial Co-opera-
tion, could easily protect himself from
the chances Of being jumped and losing
his certificate or policy by accidental
neglect, by borrowing the amount and
arranging with Il local agent forthc regu-
lar payment Of the weekly or monthly
dues he in turn guaranteeing his creditor
sntficlcntly, by, even if necessary, trans
ferring the certificate to him, thus doubly
cnsuring realization of the amount of
the certificate when maturcd.
The fraternity requires a payment of
$57 in order to reap 1913, the balance Of
the $3.50 certificate. The items of the
payment are Application fec, s3; GER
tiiicate fee, 81; contribution to relief
fund, deducted from final payment, 800;
expense; dues, monthly, Isl; total, 80;
weekly dues, 2G weeks, S26; total, $57.
The fraternity officers claim there is
no possibility of the treasury being tam
percd with. Every protection iii the
way Of bonding is looked after. The
Title Insurance and Trust Company of
Philadelphia.
By thf Introduction of three new
the ,hiqiaaef OF 8loO certificate obtains
Sl50 when it falls due, instead OF S33,
Chat Is, the $3.50 less S51 dues, taxes,
reliet flnd, &c.l'
Another newly introduced organi2a-
tlon Is the Advance Beneficial Order,
whose headquarters IRE at No. 92G
spring Garden street, Philadelphia. Its
general system Of working Is similar 10
the last described. II pays 800 in one
year and $15 per week sick benefits onall
certilicatcs There is graded assess
ment, sick benefit payment, and GER