The comet. (Johnson City, Tenn.) 1884-1916, 1900-12-27
ROYAL Arcanum.
From the Banker and TIadosman, Nov Il
1900

Editor Banker and Trademan;
| notice your article headed "Cheap
Life Insurance." on page 99s of the
Banker and Tradesman of Oct. "a,
1900, and write to ask you if you will
investigate and let me know concerning
the Royal Arcanum. I would also like
to have your answer to my inquiry
published in your paper in the same
way as you published the article in
reference to the American Legion of
Honor. | am member of the Royal
Arcanum and would like to get some
information from what would appear to
be disinterested source.
Boston, Nov, 1, 1900. W. S.
The above is one of number of sim
liar inquiries made By members of the
Royal Arcanum in answer to which the
following facts are presented:
1t was organized in 1877, and is,
therefore, one of the Oldest OF the fra
ternal companies. It was one of the
first of the older societies to recognize
the fact that fraternal beneficiary
organization must provide some form
of surplus, and in May, 1898, it was
voted to establish an emergency
fund" 1t is provided by making 9
small increase to the assessments which
it would be necessary to call from eacf
member, in order to meet current dealt
losses. For example, under the rate
in force up to August, 1893, eighteen
assessments year were necessary t.
meet all death losses. To this numbe
three additional assessments we're ad
ded for the emergency fund, and tn
, total sum represented y21 assessment
is divided by twelve to arrive at TIL
amount of the monthly payments. l
was expected that the increase thu
made in the. assessment of each mem
Der would cause temporary falling Of
in membership, but the actual loss wa
] much less than had been expected. L
1898, the year in which the society be
gan to accumulate an emergency fund
there was loss of about 5000 mem
bers. This is the only year in which
/ loss has been shown. Last year ther
was a gain of about 1000 members
and on Oct. 81, 1900, there was tota
membership of 2O5, 1927, or gain c
nearly 12, 900 for the ten months of thi
year. 1t would thus seem that the sc
ciety has already felt whatever i
effects might be expected on account c
the increased assessments. Outside {
this improvement in membership il
finances have been strengthened b
the addition of surplus, which o
D Oct. 81 was 81, 2GO, $50.
In the case of the Legion of Honor
D was shown that in ten years the men
D bership had fallen from 60, 574 to 10, SO
or loss in round numbers Of 0,00t
Taking the membership of the Royi
Arcanum for the same period, it
y found that from 1890 to 1897 it game
/ at the average rate of more than II, 0(
l. members year. The falling off
! 1898 has been explained. Figures Il
the current year, with two months "
a to be reported, are larger than the a.
NJ erage from 1890 to 1897 1t thus a.
NJ pears that the radical step taken
" 1898 has resulted in an Improvement
VI both finances and membership. I'll
Nj society's books show that all CLAIM
NJ against it are paid promptly, and {
Nj examination of its affairs made ye
M ago by the insurance departments
NJ Missouri and Michigan showed the
NJ to be in good condition. The chanl
n made in 1898 practically put the socie
NJ in different class from the ordinal
NJ fraternals, and brought it nearer to ii
NJ plan Of the old-time companions, whiC
NJ are generally supposed to be able
M live indefinitely.