The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1891-06-13
rnE sHoRr rEIiaI onpERs.

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The following letter from Mr. Whit
worth, president OF one Of the Short
term orders" sounds all right, and SO
far as his company is concerned may be
all right. The ISTELIIeEScEs has not
attacked his company or anyother COM
pany. It gave some figures showing
that these endowment companies oil the
short term order have liabilities SO
grossly in excess Of their assets as to
make u proposition that they could meet
all demands preposterous. flair: Whit
worth and other men in that line oil
business would be as frank in their pros
pectuses and advertisements rs n-thelr
policies nobody would complain. II
they had been so none OF the Eastern
States which have forbidden their doing
business there would have done SO, but
il is doubtful if they would have done
anything like the business they did.
To nc Editor oftte Intelllgeneer.
SlR:-"short Term Orders" was the
caption OF an article appearing in the
lNTEILIoEHCER, May %. AT that time
/ was about introducing to the notice OF
the people of Wheeling, the order which
represent, and am led to think TINT
the Information given you upon which
the article was based, was volunteered
for the purpose OF embarrassing my eli
forts in this direction. This information
was apparently from two-s sources: first,
that derived from those representing
competing interests, the "old line" IN
surance companies and ban ks; second,
an interview with an agent" OF one OF
the Short Term Orders.
4. From the first resource we naturally
expect criticism and attack, and we are
prepared to meet with arguments, facts
andfigures.
AS to the second source Of Informs
ton, we say that either the order Is
misleading in its representations, when,
rs the "agent" says, ''we promise to pay
a man at the end Of one year, 500, on
condition that he pays us in the year IN
installments, $4f, or the agent unfairly
represents his order. If the order re.
ierred to has thus by its promise"
committed itself, it is surely wrong in
principle, but / hazard the assertion
that the order does not SO promise. OF
course have not seen the form OF GER
tificate Of every endowment order in
existence, but / have seen many Of
them, and have never seen one or be-
torc heard OF one, which stated an
agreement to pay the endowment for u
sum certain. Such q certificate would
be entirely contrary to the idea, spirit
and intention OF fraternal assessment
orders. The plan of these orders is to
call assessments to such au amount us
may be required to meet the obligation,
even if the amount required equals the
AMOUNT of endowment paid. This these
orders have the right to do under the
genera! plan as advertised by them.
Supreme officers may estimate the NUM-
Der of assessments likely to be called.
This has been done, and have no
doubt the estimate has proved too low
in some cases.
Now, as to the order which Irepre-
sent, "the Short Term order" chartered
under the laws OF West Virginia, and
having us sound legal status as any
corporation in the world, | say that it
proposes to pay the endowment at cost,
to be determined from time to time as
the several certificates mature. What
ever amount Of money may be required
to pay the several certificates OF endow-
ment will be called for and collected
from the certificate holders, even to the
full amount OF the certificate, if neces-
sary. Can proposition be fairer than
this2 We endeavor give the endow-
ment at cost.
"The Short Term order" of which I
am the representative in this city, pays
an endowment of $50 in three months.
This order does not guarantee the
amount of cost. We will pay the en-
dowment at such cost rs we can, whether
it may be SIS, $50. S25 or some other
amount. This is the idea OF all assess
ment insurance and endowment.
The most general distinction between
"otd line" insurance and the assessment
associations is that in the one case
the "cost" based upon an estimate from
the experience of period OF years, is
paid in advance, in the other, the total
amount is paid in instruments from
time to time us necessary and required.
In either case, the money, termed the
"cost," comes from the pockets of the
policy-holders, the certifcate-holders,
the members. II for the time being,
and in this connection, we claim ITO adj
vantage over the "old line" companies,
can we not surely claim an equalityP
Just rs in the case OF the Irregular"
insurance companies, many of which
have failed and paid policy holders lit
tie or no dividend; just as in the case
of banks, hundreds OF which have be-
come insolyent; just as in the case Of
railroad corporations, wrecked; just as
in the case OF anything mismanaged,
dishonesty conducted, so the Endow-
ment orders generally may not expect
i'm munity from disaster from like pro-
ducing causes. Some may fail or close
up business. II they do not, they will
be the notable exception in the worlds
history of business enterprises. All
that people can do in this direction, as
in the other lines of business, is to ex-
ercise their best powers OF inyestiga-
ton, discretion and judgment.
Mr.. Editor, have already written,
perhaps, a too lengthy article. l have
much more to say in defense OF my po-
sition, but forbear to trcspass further
upon your columns at this time. / am
prepared to fortify with statistics and
demonstration my declaration that an,
honestly managed Endowment Order is
as legitimate, straight, square and equit-
able. as any other business enterprise.
Very respectfully,
FRED R, WHIrwoRTH,
President Of the Short-Term Order In
corporated in West Virginia,