Morning journal and courier., 1892-08-27
CONCERNING THE IRON HALL.

Representative Frank p Bennett of
Massachusetts in an Address Before
the Economic Association Has His
Say About the Iron Hall.
CHAuTAUoUA, Aug. 26.-Representative
Frank P. Bennett of the Massachusetts,
legislature, delivered an interesting ad-
dress before the Economic association to-
day, in the course of which he said: The
principal feature of the Iron Hall has been
the payment of endowments of 81, 900
each to those of its subscribers who persist
in paying the assessments as levied by the
supreme officers for a period of seven
years. The payment of disability and
death benefits has been merely incidental,
and is service which can be peri ormed
far more honestly and. satisfactorily by the
legitimate fraternal or mutual benefit as
sociations than by the endowment 30
began to mature in 1883, and in the
four years from that time to the
date of its last public state
ment, January 1, 1899, it had paid
in the final benefits to It's sick and per-
sistent contributors the large sum of $5,-
791 ,245; and the cost to each beneficiary
was in the neighborhood of $500 for ST.
600. The amount of each assessment is
$3.50 for 81, 900 certificate, and the num-
Der Of assessments have thus far averaged
II or 10 per annum. The Iron Hall also
Issues certificates for less amounts than
$1,000 at assessments ranging from 30
cents to 50 each. The success of the Iron
Hall in meeting its maturing certificates
without any apparent disaster until
the recent application for a re-
ownership was powerful argument
in defense of the Massachusetts en-
dowment societies. trust the audience
will pardon me for appearing to assume at
ments and possibilities of the "Order of
the Iron Hall" is necessary to convince
you that no known system of honest finance
is able to continue payments of 81 900 for
assessments aggregating $500 in seven
years. During the first years of its orRsni-
cation the membership was small, and at
1000 each, $5,791 ,245 would pay but
5,791 certificates. According to the COM
pany's own statement it paid only 900 final
claims in 1891, and had at the beginning
of that year $1,000 members, and at the
The II or 10 assessments of the
company for single year, upon the last
named number of members, would yield
more than sufficient funds to have paid
the 300 maturing certificates. In the year
1901, to which have just alluded the Iron
Hall raised II assessments, yielding ST.
907, 288 IS; and it paid benefits aggregst-
ing 81 ,105, 48S, including not only the ST.
600 each to the 900 matured certificates,
but also some sick and disability benefits
But while a membership of 65, 204 would
and leave something for the reserve fund,
a membership of at least 2,60S, 100 would
be required to pay s., 204 maturing certif-
Gates at II or 10 assessments per year, and
a membership of 104 1926, 400 to pay 2 ,60S,-
100 maturing certificates, and a member
ship of 4,173, 056, 900 to pay 104, 1926 400
maturing certificates; and as the popula-
ton of the entire globe is estimated to be
but 1 SOC, 900, 900, it follows that, upon the
basis of these calculations, nearly three
times the population of the whole world,
including octogenarians and infants in
arms, Hottentots, Patagonian giants and
wandering Arabs, would shortly be neces-
sary to ensure a reasonable degree of per-
manency for the Iron Hall alone, without
making any provision for the endowment
companies having their home Offices in
Massachusetts,.
1t would not seem to reqnire very pro-
found student of mathematics to under
stand that if 1000 men pay $500 apiece
into a common treasury, and 300 of them
draw out 81 900 apiece, there exists def-
cheney Immediately of $500, 900 if the re-
naming 700 have each been promised
like sum; and that, without making any al
lowsnce for the running expenses of the as
sociation,it requires Is new members to
pay off one old member at the rate of
81 900 for $500. Nearly every schoolboy
is familiar with the old story of the black
smith who agreed to pay helper one cent
the first day, two cents the second,
four cents the third day, and so
on, doubling the mans wages each
succeeding day for twenty days. The as
tonished blacksmith found that by this
process the helpers earnings amounted to
IS, 242 SO for the twentieth day and to $10,
1876. rs for the entire twenty days. In this
generation of an advanced public school
system in the United States one would
suppose there were enough who have been
initiated into the mysteries of geometrical
progression to suggest the impracticability
of the Iron Hall system of speculation at a
glance.