The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-23
LEGION OF HONOR DEFENDED.
Member Gives the Result of His
Investigations.

Investigations,
cambridge. Ga, Sept. 2l.-Editor Morn
,,,e, News: In your issue Aug. 20 was an
artic,e headed, Legion of Honor in
rrouble." After inquiry, 1 find it does
the order injustice, and was the cause of
.or,e members becoming suspended. In
that article, you stated applications had
baan made in two states for receivers,
charging the supreme officers with mis-
engagement of the emergency fund. You
o-,t+ted to state how this fund was mis-
managed. Had you stated in connection
NTH the article that twice previously,
- 1891 when the nucleus of the emergency
t,,nd was created, and in 1891, when the
order commenced paying its members div
,dands. attempts to prevent the same by
-oiry into courts was made, and failed, 1t
ss,ani3 nave been no more than proper.
and application was made by single
,or,ber for a receiver-and only in one
stata-and that failed. The complaint was
+bo+ the bonds were unstable" l enclose
,'on certificate from the state treasurer
~ Massachusetts, showing the order has
on deposit, approved bonds, face value OF
SlOo n0 The order has deposit of BONDS
vim the state of Missouri. All OF the
bords will to-day command premium,
~ oddition to the emergency fund, which
mounts upwards of half million dol
iars and is securely invested The order
bos loaned for sick benefits amongst its
present membership upwards OF $S00,OOO.
I erd that all the death claims upon which
The extra assessments were called
have been paid, and the
members generally have paid the August
assessment. Since 1891 upward OF SJOOVVO
bos heen distributed amongst the mem
bars IN dividends No dividends will be
naid in 1896: the dividends for this year
have been added to the emergency fund.
7 refer TO the resolution before the su-
preme council, session of 1885.
There are two measures which come be-
fore the next supreme council next year.
which are Of interest. One is, the ADDING
annually to the guarantee fund one-halt
of the dividends, so that IN the future
sbould there be annually over eighteen
assessments called the overplus over the
eighteen assessments may be taken from
tbts fund: the other is to give to mem
her who has been in the order twenty-five
wears a paid up policy for portion OF
his premiums paid in.
find the members in Georgia have paid
in about 81, 200 600; there has been paid out
In sick and death claims in Georgia up
eeAA'N--N
der are managed economically. The or
der paid out in 1895 for sick and death
benefits nearly 100000. The expense of
management for 1895 was, net, $5S,S54. This
includes premiums paid for bringing in
new members. For illustration member
who brings in an accepted applicant for
$1,000 insurance receives a premium of
81 This is all the expense the order
has to bring in this member. Now let us
compare this expense with the expense of
an old line insurance company, which has
TO solicit 81 900 or upwards insurance.
Say application is made for $1,000 insur-
ance at the age of 45, on the ordinary life,
twenty-year period. The premium
would average about $SS annually, of
which first years premiums the
soliciting agent receives so per cent.
In other words, out of the 1913 first annual
premiums the agent soliciting gets $3.50
for his part Now, it would never do to
leave out the general agent so he gets
10 per cent, which is $780, Now here is
$3.50 average cost of paying agents in an
old line company to bring in an applicant
At the average age of 40 the annual pre-
MUM is $3S, in comparison with 81 cost TO
bring him in our order, and it is my re-
quest that if the above statement is not
correct that some of the agents of the
old line companies should make the cor
rection. In addition to the commission, 60
per cent, the agent receives a bonus; the
general agent receives a commission on
the premium for three years. Yours re-
spectfully Member"
Accompanying the above letter to the
Morning News, was letter from the
treasurer and receiver general of Massa-
chusetts, stating that there are on deposit
in the treasurer's office approved securi-
ties of the face value Of 100000, to be
held and disposed of according to the pro-
visions Of the act under which they were
deposited