The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-10
KNIGHTS OF HONOR TALKED TO.
savannah Lodges Given an ExpInna-
ton of the New Assessments.

Lodges GIVEN an EXpIan0-
ton of the New Assessments.
special meeting of the two local lodges
81 the Knights of Honor, Alliance lodge
NJ 5Ss. and Savannah Lodge No. 1853, was
hold last night at the knights of Pythias
hall for the purpose Of hearing the expla-
nation of the new assessment table by
Denutv Grand Dictator H. D. Watts.
The new assessment table has been or
sarad into effect by the supreme lodge Oct.
/ and as it is a radical departure from
The old method of collecting assessments
Inc members are all very much interested
IN understanding just how they are affect
ed by the change.
The knights of Honor. next to the A. o.
II W.. is the oldest of the fraternal assess
T,ant societies in this country, having been
Instituted twenty-three years ago at Lou
isvile XIV. Its record is a highly honora-
he one. In the twenty-three years of its
existence it has paid 100000 in death
benefits, besides expanding several million
dollars in relieving sick and distressed
members. It's present membership is
about llbVO.
on the subject OF assessment insurance
I-ere rather crude. Instead of fixing upon
q Graduated rate of assessments accord
inc TO the age of applicants the same as
sessment was made upon all members be-
tween d and 40 years of age, the monthly
assessment being 81, This was for $1,000
insurance. the full amount allowed to be
taLen out The remarkable thing about
Il ts that the order has adhered to this
antiouated system of insurance for so
long. and that it has held up so well I'M
der il. The usual circumstances, common
10 all assessment orders, the increasing
age of the membership, with the gradual
lDx., Of Il he
about the usual result, an increase in the
number of assessments. For some time
three assessments a month have been COL
1ected and recently it was necessary to
order the payment of four assessments or
"a A month. The matter of making a
change in the manner of assessing has
been discussed by the supreme lodge for
several years, and at the session of 1895, a
special committee of seven was appointed
and charged with the duty of submitting,
at the session of 1896, plans for the i'm
provement of the system prevailing in the
order. The committee has made it's report,
and a system of graded assessments
adopted. The new system is to go into
effect Oct. l. The plan provides for a grad
nal increase of assessments from year to
year. The assessment for q years of age
is 81, for % $1.02. Up to q it increases at
the rate of 2 cents per year. Then the in
crease gradually rises a cent every three
or four years. At so, the assessment is $3.15,
and at 81, $3.50. The table is graded up to SO
years of age. The assessments are not
level as in an ordinary life insurance COM
pany For instance, the man who goes in
at 81, when his assessment is 81 per month
is not assured the same assessment every
year thereafter. The next year his assess
ments will be $102 per month, and the in
crease will continue with each year.
"A great many of the members of the
order" said Mr.. Watts, in explaining the
system yesterday afternoon, ARE from 40
to 60 years of age. Naturally deaths are
more frequent at these ages. 1t is unjust
to expect new members entering the or
der to bear the burden of these increasing
liabilities, which they have had no share
in mourning, and for which they have
received no benefit The purpose of the
new system is to adjust the assessments
so that a member will approx
mately pay only his proportion of the La
bilities for deaths of members of his own
age. Among the same number of MEM
bers at 80, death will be much more fire.
quent than among the same number at
% years of age, and as each age is ex-
pected to pay for the deaths in its own
class the assessments are necessarily
larger at 80 than at 25. Under the old
system, with a constantly increasing
death rate and higher assessments new
members, especially young men, would
not enter the order. The cost would too
great, because they would be paying their
proportion of the death claims of men
who had been in the order many years,
and who had had all the advantages of
the former low assessments The table
has been carefully computed by the
standard actuaries' tables and is as near
" perfect as system of this kind can
be-"
The assessments are fixed to this ex-
tent that only one assessment a month
can be called, and a member knows ex-
actly how much he will be required TO
pay each month. The assessment at 81
is Sc per month, after which age there
is no increase. 1t is voluntary with the
members of the order whether they will
accept this table or continue under the old
plan. Those who accept the new system
and all new members will be put in class
A, while those who do not choose to ac-
eept it, preferring to continue under the
old method, will be put in class B. Sepa-
rate accounts will be kept for the two
classes and members in one class will not
be assessed for deaths in the other class.
Mr. Watts said that he believed the plan
would be generally accepted by the men,
bers and that the result would be a large
increase in the strength of the order.