Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1901-08-03
TOOK THE RIGHT COURSE.
Auditor Hart Endorses the Action of the Endow-
ment Rank

AaulIOr mart ENDORSES the Action OF the EndoW-
ment Rank.
1.-The Endowment Rank, Knights of
Pythias, had the usual two horns to its
dilemma said State Auditor Hart last
night. cone horn was to raise the
amount Of its deficit by an additional
assessment, while the other was to go into
the hands Of receiver Because of the
utilization Of the endowment rank with
the general order Of the Knights of
Pythias a receivership would mean TAX
ing control by the courts Of all the affairs
and property Of the Knights Of Pythias
throughout the United States.
''The supreme lodge has acted in very
sensible and honorable manner to its
membership in concluding to raise the
rates in accordance with the table of the
fraternal congress, which is an assOcia-
tl0n Of the better fraternal companies of
the country. By this means the affairs
of the endowment rank will in a few
months be in splendid shape, so that its
delinquent death losses will be paid and
the mortality of the future provided
against.
'Tw0 years ago, when the fraternal
Insurance law Of Indiana went into
effect, | accepted the financial statement
OF the endowment rank, but felt consider
able hesitancy about it. [ only concluded
to accept the statement when I was as
sWed of the responsibility of the entire
order for the financial affairs Of the in
sWance department. This year when
the financial statement was presented
there had been some material better
ment III that the order showed an in
crease Of 5000 members and was in no
worse financial condition than it was
two years ago, but | refused to issue a
license to the rank. / consented, how
ever, that it might transact business in
Indiana until after the examination of
its affairs was completed by the insur-
ance departments of Illinois and Con-
nectlcut, and the report Of that eXamin
alton was acted upon by the supreme
Lodge.
Il think that under the management
of Mr.. Neal, of Lebanon, the new presi-
dent Of the board Of control Of the en-
dOwment rank, strict business methods
will prevail and there will be no invest
ments in the shape of second mortgages
and | am quite sure no personal pull on
the rank will be tolerated"
Auditor Hart expressed amazement at
the lo0seness of business methods that
characterized the management of the
endowment rank before the recent in
yestigatiOn. "Why any board Of di-
rectOrs should have permitted such an
Investment as was made in the Lexing-
ton HOTEL" he said, ''and in half dozen
other items that went to make up the
ranks so-called assets is more than any
sane person can understand. This all
grew out of too much One-man power
and Superabundance Of hypOcritical
brotherhood
"The fraternal insurance companies
generally, however, have come to
recognition of the ineX0rable truth that
death natures certificates in fraternaI
company just the same as it does in any
other insurance company, and, unless
rates bear some relation to the NOR
tality, it is only question Of very
brief experience until disaster is written
across their horoscopes.
And so the older companies that
began on light mortality cost have, in
many instances, increased their rates,
and a number Of others are contemplate
ing such a change. At the last session
of the Indiana legislature the minimum
rate law, a creature of the wisdom Of
the National Fraternal Congress, was
incorporated into our statutes, so that
hereafter no fraternal insurance COM
pany can come into Indiana unless an
amount equal to these rates at least is
charged against the mortality cost to
the membership.
''The decision of the Supreme Lodge
at Chicago this week to raise the rates
of insurance in the endowment rank
was an action that should have been
taken two years ago, and the experience
of the future Will demonstrate that anv
fraternal order that does not charge
these rates, based upon experience, is
flying in the face of serious trouble.
''The theory of fraternal insurance is
that it cannot be conducted at profit,
and it is due the fraternity that when
ever any one connected with the execu-
tive features of fraternal insurance
society is manipulating its finances for
personal gain either in salary or per-
quisites, he shall be at once dismissed.
and if criminally responded cashiered.
The endowment rank cannot do any
thing more wholesome for the fraternal
interests Of the country. to say nothing
of the question of justice to the mem
bership of its organization, than to go
to the very bottom OF the peculatiOns
which have brought this great deficit,
and see to it that the responsible parties
are punished for what is evidently great
crime"
The state auditor still has confidence
in the endowment ranE, despite the
disclosures in the report of the investi-
eating committee presented to the Su-
preme lodge at Chicago last week. Il
believe now as [ always have believed"
he said, that policy in this endOw-
ment rank will never be dishOnOred,
because back of every certificate is the
Endorsement of the great order of
knights of Phythias throughout the
United States, and its resources are
abundantiy able to make up this def
cheney, and | believe the members will
cheerfully respond to the plan proposed
by the supreme lodge at its Chicago
session" indianapolis Journal.
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