Waterbury Democrat., 1901-12-18
KNIGHTS OF COLUMBUS.
A Plain Statement of the New System
 of Assessment.

of Assessment.
 Daniel Colwell, national secretary of the Knights of Columbus, is sending out to the members of the order, through the officers of the various councils, pamphlets giving history of the adoption of the new rates that are going into effect on January l, l9O2. So much unofficial gossip has been going the rounds of the press that many members affected by the change have imbibed a prejudice against It. It would be well, therefore, for mem bers in studying the new plan to dl- vest themselves of all personal inter est in the rates and view them on purely business basis.
 The time has passed when anyone giving intelligent thought to the ques- ton of protection can get away rom the plain business proposition that fra ternal societies like the K. of 0. are furnishing life insurance, call 1t Dy whatever name you please, and if they claim to give insurance or protection for life term, then they must abide by the laws of nature, which are ln- mutable and unchangeable. Cond1- tions may change with environment. and some societies may have lower mortality experience than others be- cause of territorial limitations, or other reasons, but every reason should have a basis in fact and figures.
 One of the greatest dangers to fra ternal insurance companies lies in the accumulation of reserve necessary to protection under the old plan. This will be in a large measure eliminated under the new system. The first es- sential under ally manner of insurance is security. Undoubtedly this could be secured under any of the legitimate systems, but simplicity is desired un- der fraterna1 insurance. On the level premium plan the accumulations in the course of time would become very large, especially should the order at tain vast proportions. For example, if there are 100000 members insured for S1,000 each, and the average age at entry was thirty-ive and the average time since entry was ten years, the ac- cumulations would be between $15,- 000,0O0 and $2O,000000, and to keep 1 this sum safely invested would require staff of experienced men who would give their time entirely to this busi- ness. Men capable of doing such work properly would have to be paid con- siderable salaries, and there would also be some risk of loss of considera- ble sums either through defalcation or unwise investment. Under the plan adopted the accumulations will be small. and consequently the loss through investment slight.
 The, only objection to the step-rate plan that is worth considering is the | fact that the rate will increase some what as a man becomes older, but no system can be devised that will be absolutely free from possible objec- tion, and the answer is that the step rate plan makes it easier for young
 men to come in, and though the charge | is more in after years, it is claimed by I the order that most young men are better able to pay more as they grow older
 l Massachusetts, one of the strictest states in the matter of insurance, gives the following indorsement through one of her insurance commissioners, John K. Tarbox:
 "The step-rate, whereby the in sured pays for each year of his insur- l ance the assessment proportioned 10
 his age in that year, is the equitable
 and logical one. Furthermore it is
 my conviction that no life insurance
 company, except on the plan of ade-
 quate reserve, can permanently pros l per on any other assessment basis, un-
 less it can by some expedient secure
 equality in cost to it's members
 The following is the table of rates
 in effect January l, 1902, the rates in
 creasing every five years until the age
 of 50: