The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-02-28
''OLD Line" 81
A'1e insurance va. tho Fraternal
systom US Represented BY
KNIGHTS lI OF HONOR AND OTHERS.
a Letter From an "old Llner. /"
brought Out by Mr.. mpb.lrs
Interview With tho Supreme Ito.
porter of tho Knights OF Honor.
lilo Discusses tho Points of Dlfrsr.
oneo-Wcak Places In tho Fratcrnul
System.

System.
7oht Editor Of ne lnttlicen.er.
sIR:-l have read with in,oro,t tho
Interview between Mr.. A. W. Campbell.
oil your paper, aud Mr.. b. +. Nelson. of
ST. Louis, supreme reporter Of tho
hnighss OF Honor, concerning tho com.
paratlve morits Of fratornal protection
aud "old limo" lilo insurance. With
much that Mr.. Nelson says l heartily
agree. lie Is right, for instance, in his
claim that tho solo excuse for tho OK.
iatence Of such organizations is tina.
protection may DO furnished to ones
dependents In tho event OF premature
doath. aud That they cannot DO made
available as q moans Of Investment for
Investments sake. No lie insurance
organization can offer anything worthy
tho namo OF Investment in connection
with n lilo insurance contract, though II
isqui,o truo tina: agents sometimes ron.
resent 1t to tho public in this form. I.
10 only an Investment in that II neccssi.
tates savings on tho part OF many per.
sons oil the sums paid for premiums on
lie policies, which. otherwise, would DO
wasted In extrayagances.
l am compelled to admit tho force OF
. l..
rigid economy exercised in tho manage.
ment OF tho affairs Of the Knights OF
Honor. Thia Ia worthy OF all praise and
might properly DO emula.ed by tho
great life insurance companies, whose
was.efulness in some Instances ia motto.
rious.
However, concerning tho plan OF the
X. Of H., which Mr.. Nelson defends
with such zeal and seeming plausibili.
ty, am wholly at variance with him.
In saying this l do not wish to detracs
a particle from the credit his order do.
serves for the good it has dono within
the past twenty years. Indeed, rs he
says, an organization which has been
tho means OF distributing among wild.
ows and orphans tho enormous sum Of
nearly fifty millions OF dollars is deserv-
ing OF all praise and l fully accord
mine. My regret is that tho faulty
plan upon which 1t is founded gives lii.
tie ground for hope that its good work
can long DO continued. !. do not share
Mr.. Nelson's view that the organization
can be perpe.ua,ed by good manage.
mont, ii by that he means merely hon
est management without radical 70.
casting Of it's methods. II.
Mr.. Nelson is disposed to attribute
the steady increase in the orders death
rate in the past TO carelessness in the
. selection OF its earlier membership.
am inclined to the simpler explanation
that old men die at greater rate per
thousand than do young ones. This
fact has in great part been lost sigh. OF
in the formulation Of tho scheme OF AZ
sessments Of the Knights OF Honor. It
is true, according to the present pub.
lished table OF rates, that on admission
members are charged at different rates,
beginning with so cents, for age thirty
and under. and increasing to 50 for ago
fifty. 1t may be remarked In passing
that these rates. in their relation to each
othor. do not represent the true ratio OF
hazard as expressed in the accepted
tables OF morat lity, but thisis not vital
matter. It ia vital error, however,
that the initial rate should be retained
throughout ore's membership in the
order-for through it We have the
anomaly OF two members varying wide
ly in age securing the same amount OF
protection at iden,ically the same cost,
or, to put it another way, two mem bers
OF tho same age and having tho same
protection at widely varying COST.
To illustrate: Lot us assume Mr. Nell
son entered the order twenty-one years
ago at the age OF twenty-niue, payiug M
assessment rate OF eighty cents, and
which rate he continues to pay now. 1t
then appears that he, man OF fifty, is
paving for his protection precisely tho
came, and no more, than his newly ad-
mitted brother. aged thirty or loss. Now
no ono disputes the fact tim, deaths are
more frequent per 1000 among men OF
fifty than among those aged under thirty.
Equity require, that each member
contribute in proportion to tho burden
no imposes on the order, but this is not
done, for 1t is evident that Mr.. Nelson
and the earlier membership are paying
le.S than their fair share OF tho death
costs, and naturally it follows that the
new recruits are called upon to make
good the shortage. This makos clear
why Mr.. Nelson ia compelled to admit
that young man Of twenty.one pays
to the Knights OF Honor just
abou. what ho would DO called
upon to pay for an ordinary life
policy in n life insurance company.
and about twice tho actual value of tho
protection he enjoys. He admits further
that policy in lie insurance com.
pany would havo some value for sur
render after two or three years. but un.
dertakes to Offset this by tho advantage
the membership OF tho Knights Of
Honor. onjoy in being ablo to pay in
installmonts. He forgets that most lifo
insurance companies offer similar priv.
ileges.
As matter OF fact young mon ofthir-
ty and under eau secure tho same pro.
lection i'll other fratornnl orders, in as
Bessment companies, and for that mat.
ter. In regular lite insurance companies,
Mt about one.half tho actual annual out
lay required in the knighta Of Honor
or II they choose to pay tho Knights Of
Honor cost tho regular, companies will
accumulate n considerable share OF 1t
which may DO Withdrawn In after years
when tho need Of protection ceases.
1t therefore appears that tho regular
companies OF tho better class arc in
every way moro desirable tor young
mon IN that. for about tho snmo cost,
certainly as complete protection ia fur.
nished and in addition cash value for
tho insured himself in caie OF nccd.
We need therefore no longer wonder