The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-15

be best subserved by a winding up of its
affairs. and suggest that you take such
action as may be necessary to bring about
this result
AUDITOR HARRIS STATEMENT.
IN statement to the Journal yesterday.
with reference to the order OF Chosen
Friends. Auditor OF State w. II. Hart said:
..The Order of Chosen Friends has paid
out, during the twenty years OF its ex-
istence. about sl4.Ooo.000. 1t received dur
Ing the last year s7S2 1856. and disbursed
for death and disability claims S722. 121 SO.
II did business in thirty States OF this
Union and in the District of Columbia. and
the proceeds Of one months assessment
amounted TO about $500. There are two
OF these assessments in the hands Of the
members and the State was very anxious
To have the receiver appointed at once in
order that the members could be saved
these payments.
1.-THE unfortunate feature about this fail
IRE is that a very considerable part Of
its membership are at such an advanced
age that the rates in good company are
almost prohibitive. For instance. there
are about 1000 members over seventy years
OF age. and over 1900 between the ages of
sixty and seventy. The average age of the
entire membership is forty-eight years.
The order levied four extra assessments
in the past year. and unfortunately it had
the effect of dropping the younger men,
bers and holding the older ones. which
greatly increased the physical hazard.
nary. and the death rate this year has
been very large. and from the age of the
orders membership IL would continue TO
grow In appalling ratio This company
paid no attention to mortality rates dur
ing the larger portion Of its existence, and
no company can keep out Of the hands Of
= receiver that does not charge ratios that
are based on mortality tables. This fail
ure should emphasize the necessity for
the coming Legislature TO amend the fra
ternal insurance law so that no company
can do business in Indiana that does not
charge rates based on mortality tables.
The fraternal laws will have to be amended
IT. several very important particulars, CIV
ing the insurance department of this Of
fee more power in examinations and pro-
tecting the public against experimental or
ganizations. The recent management of
the order made heroic efforts to stem the
current against them, and during the first
of the year just passed the extra assess
ments enabled them TO get in a slightly
better position, but the physical hazard
was against them and their course was in
evitabIy towards the setting sun"
AT THE ORDERS OFFICE.
At the offic.s of the Order of Chosen
Friends in the Commercial Club the cIer-
zeal force spent yesterday in the usual rou-
tine way. there being nothing TO indicate
TO the casual visitor that anything was
amiss. There were no unusual incidents
during the day. Grand Recorder Linn was
IN court most of the day, but was at his
desk a part of the afternoon. He appeared
10 be grateful for the manner in which
Attorney General Taylor had spoken to the
court Of him and the other officers.
Grand Recorder Linn says the organiza-
ton received It's first great blow in 1895.
when there was an application for a
cefver for the order brought at Louisville.
This was short time after the concern
had changed its original plan of operation.
AS a result of this change and the subse-
euent application for receiver the order
lost 1900 members. Mr.. Linn says the old
line insurance companies have been arrayed
against the order ever since 1t changed its
plan OF work so that it could compete with
them. Mr.. Linn said yesterday evening
that he and other officers had decided that
something must be done To protect the
members, or at least a part OF them. lie
said he was not in a position to say Just
how this would be done, but he thought it
would probably be through the organiza ton
OF new concern of some kind. The Order
- Chosen Friends. Mr.. Linn asserted. win
go out of existence. as there win be no at
tempt TO get IL ON its feet again.
FROM OUTSIDE.
A special from Jefferson City, Mo-, states
that State Superintendent of Insurance E.
T. ORear yesterday revoked the license of
the Order Of Chosen Friends TO do bust
ness in Missouri and notified the officers
70 cease doing business in the State.
The order is represented In Philadelphia
By three lodges. the largest having a MEM
bership OF thirty-four, and few of the
members are said TO hold unsettled Claims
against the order, but no action was in
stituted against the order yesterday in any
OF the courts OF Philadelphia or in any
OK the courts of the State.
The first intimation that any one outside
of the officers of the Order of Chosen
Friends had of the precarious condition of
the order was received by Auditor of State
Hart in a letter from member living in
San Francisco, in which complaint was
made that the order was very slow in pay
Ing claim preferred against 1t and ask