Morning journal and courier., 1891-05-01
COMMUNICATIONS.
More Startling Facts.


 An editorial that appeared in recent edition of your paper. under the heading ''some startling facts" giving figures in regard to endowment societies in Massachusetts, was so misleading in character as to evoke criticism from many of your constant readers who are inter ested in cooperation banks, building and loan associations, fraternal insurance and endowment orders, in which, the principle of cooperation, as applied, reduces the assessments or payments to minimum. I trust you will adhere to the motto, Justice to all, and make room for more startling facts concerning these end low ment societies which include in their membership 2,000 of our we'll known citi- zens
 This plan has been in successful opera ton for the past ten years. The oldest organization is to-day stronger than ever, has paid out millions of dollars in sick, accident and total disability claims, has promptly cashed all matured certificates, at the present time has reserve fund of $1, 800, 900 to meet future liabilities and in addition has a membership of 60, 900 ready to pay assessments when called.
 Is it perogative of American citizen ship to unjustly condemn a plan simply because the idea is an innovation on an cient theory or because figures given by an insurance commissioner, without pEope, explanation, places these orders in false position. Your editorial credits the fol lowing figures to the insurance commis- sioner. The ffty-one orders incorporated in Massachusetts collected for expenses last year $1 ,287 ,S24 and paid out in bene- fits $464, 79l, therefore it is estimated it will cost $40, ,000,0 to pay the s52, ,9S0, 195 benefit certificates outstanding: no mention is made of the surplus which will be .bs available able tbat flor the the being the first year of most of these or dsrs. Their expenses have necessarily been greater than they will be in the flu ture. Why not apply this rule to trade; a merchant invests S25, 900 and does busi- ness of 5000 only the first year, conse- quently, if we employ the same method of computation as this bright commissioner, his expenses will be almost three times the amount of his receipts IS long as he con tinues business. And again, by the same method of estimating, all money no. paid directly to members must necessarily line the pockets of the incorporators. The idea is absurd. Every person, who has taken the pains to investigate, knows that there are fraternal orders of this kind doing business in our city at one-third the cost to members of old line companies. The trouble is that people condemn the good with the bad without investigation Was there ever new idea advanced that was not combatted by "old women who live in hickory nuts?' The better the pro | ject the greater the opposition.
 And now few words in regard to the benefits of the fraternities. The record that the leading ones have made, has dem onstrated beyond doubt the feasibility oi this system of protection; the benefits ac | cruing are an actual reality, as hundreds in this city who have received benefits | during sickness will acknowledge. hay, | personal knowledge of one lodge that ha, paid out S1, 300 the past eighteen months in sick claims. Has that money been with drawn from tradel Or would it have beer | better for the recipients tC have deposited their small saving: in banks and received thC high rate of interest offered at present To quote from the editorial: "Is it an! wonder that the savings banks deposits have fallen off" It is cooperation tha enabled the A. O. U. w. to pay to thu families of its 15,000 deceased members $50, ,000, ,000 the past twenty one years a an average cost to each of $75. It is co operation that has enabled the Royal Ar canum to conduct the business of S6, ,93 policies at an average cost each year, pc policy of 551 cents, while it has cost tn Equitable Life Insurance company eacl year S32 10 for each of its 14S, ,40J policies If fraternal death benefit orders cal make such showing against old line com
 panies, why cannot fraternal endowmen orders do as well.
 Of course lapses are factor in both ol line companies and fraternal orders. Ar lapses wronga Old line insurance men ss
 they are wrong in fraternsl orders, bu
 ''all right" in the old line company. Man
 individuals will condemn an organizatio
 for receiving benefits from lapses; thei
 memory is equal to that of New York a
 derman on the witness stand. They forge
 to condemn the mortgage forfeiture law
 of New Hampshire, Massachusetts an
 Rhode Island. Such inconsistencies ar
 wrong It should be borne in min
 that the member who lapses, while in goo standing, was insured for a certain amour and in case of sickness could draw certai
 sums from the treasury. Are these orgaI
 izations robbing people when they acceI
 their money and assume these risksi A man who insures his property for or
 year and fails to renew the second yes
 does not accuse the company of robber, He knows that he has received full valu in protection, for money invested, and
 he lapses that is his own affair.
 could give facts and figures whic
 would surprise the majority of yor ' readers. merely wish to present the otl CT side of this great question and to than , you for courtesies extended. I do not d. ny that there are orders started to enric
 the promoters at the expense Of the ls members; every new and popular idea f. the good of the people is 'sworked" by responsible parties for their own benef A thorough investigation will enable tho . interested to discriminate between orde f dealing in theories and visionary schem , and those conducted on @ conservati' :. business basis. thank you for this O [ portunity of presenting these NstartliI
 facts" to your readers. It is a pleasure
 find that "these orders are receiving son '- of the attention to which they are en a tied. FRANK H. CHATFIELD. .f