Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-08-30

voice In the management Of the company,
otherwise than by acting as secretary. up
to the fall of 1889. During the spring Of
that year an effort was made to sell the busi-
ness Of the association to another insurance
company, but the negotiations fell through.
A second attempt to sell was subsequently
made, but failed through my opposition,
1t did not appear to me to. be for the best
interest of the policy holders to allow the
transaction to go on.
up to this time the association paid q
salary to: dts president; every director was
paid s. a meeting, there being four meet
ings a month, and salaries were allowed to
them as members Of committees. + myself.
was paid a salary. as secretary, Of s.. 300 a
year, the same as / subsequently received
while president DIR. r. B. Donaldson as
stunned the presidency for one year without
a salary, and the following year L was
elected to the presidency without any ad-
dltion to the salary had been receiving as
secretary, thus saving to the association,
among other things. the salary of presi-
dent. In effecting these changes three
members were withdrawn from the board
of directors, and the marked decrease In
expenses notable In the figures of 1871 COM
menced.
Il allude to the circumstances attending
this cutting down of expenses. not with the
intention of securing credit to myself. but
with reference to the animus of some who
have been instrumental in instigating the
attack upon the association and myself as
it's president. The retirement Of the direc-
tors referred to never in any way Injured to
my benefit personally, but only to the gen
eraf benefit Of the company.
Increase of the Death Rate.
During the past three years the death
rate in our association increased very rap
idly Not only were we afflicted with the
heavy death wave that seemed to be pass
ing over the insurance world, but the
average age OF our membership was in
creasing at 60 rapid a pace that in a few
years our assessments would undoubtedly
have become SO heavy that dissatisfied GER
tifcate holders would have left the company
and then we could not have met our obliga-
lions. For ability to do business profitably
we We're necessarily dependent upon new in
surance of which 1t is almost impossible
for an assessment company to secure any
thing like fair share in the face of the
great general competition, which even
causes large companies to sacrifice the first
two annual payments, and thus carry in
su-ance for two years before the tnsuring
company reaps the benefit.
AN assessment organization with opera
tons confined to a small locality cannot af-
ford the heavy outlay needed to secure new
business in hard times, when unsolicited
Investment In insurance Is relatively rare
and small With death assessments and
the age Of members thus increasing without
corresponding growth in new insurance by
the young or middle aged, 1t seemed to be
my duty to examine with great care propo-
secure continuance of business without
disaster to our stockholders and without
depriving Of the advantages of insurance
those who had paid assessments due us
for many years, who could not reinsure
without re-examination. II they could do so
at all. Such were the circumstances and
causes that led to the sale of stock under
conditions that seemed the most favorable
to Washington Beneficial policy holders 1t
was possible to obtain. The officers of the
Commercial Alliance have already spoken
for themselves to the people Of Washing
ton. During my negotiations with them I
found them to be upright, prudent, and
frank.
Sold After Mature Reelection.
They have to meet the sharp rivalry
which has been SO largely instrumental In
the attack upon our association, and which
has gone to the extreme in the effort to Sc
| cure the custom of our policy holders, as il
shown by the Mood OF advertisements In
Washington daily papers openly bidding
for the business Of our policy holders. The
Commercial Alliance Is a young and vigor-
Gus institution. with sufficient means and
scope. L firmly believe. to protect all the
rights and promote the advantage of WASH
ington policy holders. and free from the dis
advantages that peculiarly affiict q local
assessment company in hard times.
There Is no attempt to force members
out OF the Washington beneficial Endow-
ment Association. They can remain there
IL they wish. but IL Is to be Appreciated
| that their assessments will shortly become
80 heavy that their Insurance. win cost
J them more than. the amount they would be
asked TO pay in the rev company. They
| have their choice as to the course they will
| pursue. after having. during previous years.
| enjoyed the benefits OF good insurance at
less than half the usual rates
| The step that has been taken was not
resorted to hastily. but after deliberate and
| anxious consideration during an entire year
| and consultation with the best advisers 1
could find among the insurance men OF the
| country. For time there was thought Of
changing the plan of our association SO as
to get rid OF the assessment feature but
| legal obstacles were encountered that would
prevent this without injustice to the stock
| holders and certificate holders Of the or
| ganization.
Defense Of the Transaction.
THE only companies with which we could
| have consolidated whose premium would
have been less than those of the Commercial
Alliance were assessment companies, and
| union with any Of them would not have cut
at the roo. of the evil from which We were
! suffering. It should not be forgotten that
| 1t was necessary to provide for the meeting
| of 81, 500 OF outste nding death claims and
also to make provision for other death
losses that might occur before the policies
| Of certificate holders could be transferred.
| This point was carefully and effectively
guarded in the arrangement with the Com
| mercial Alliance Life Insurance Company.
1t Is as clear to me now as IL was at
the time of the transaction that the course
pursued was the proper thing to do. and
done at the proper time. The rumor passed
from mouth to mouth until Ii became the
common talk OF the town that received a
commission for my interest in effecting the
consolidation I brand as an absolute and
unmitigated falsehood. / sold my stock, as
did the other stockholders in the associa-
| ton. for the regular and equal market
price, no more. no less. There was no legal
reason why l. or they. should not have sold
at any time, stock Of the company was
| sold before, time and again. But II seemed
| better for me to remain connected with the
association, discharging the duties Of my
office and bearing its burdens. until
could make such an arrangement that our
certificate holders would be protected and
their insurance continued upon fair terms
without liability to rejection on re-examina-
ton, as would naturally have been the
| case with many where the average age of
the insured had become SO great.
Some Personal Remarks.
"At a recent public meeting one speaker
asserted that a great deal of the trouble