Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1901-01-03

men of Helena and Butte to secure the
enactment of bill at the approaching
session of the legislature that will place
fraternal insurance companies under
state supervision; that is. to require
fraternal insurance companies to make
regular reports to some state official, as
the companies doing an exclusive life
insurance business are now required to
do lis likely to lead to something in
terestng.
At present any fraternal Orga aiZatiOn
can write life insurance without making
any showing to the state officials. AS
large percentage of the population
of every state is connected with some
fraternal organization writing life in
surance. there will in all probability
be active opposition to the passage of
such bill. The insurance men, how
ever, are in earnest and intend to force
the issue. An idea of the situation
from the standpoint of the insurance
men, is shown by the statements of local
insurance agents who represent certain
Oldline insurance companies of estab-
lished standing.
1T is my firm belief that it is for the
best interests of the human race" said
w. G. Bachelor, district manager for
the Mutual Life Insurance company of
New York, that all insurance COM
panies or societies claiming to do life
insurance business should be under the
supervision or control of government
in order that the public could at all
times be kept appraised of their finan-
cial condition and future outlook
Il further believe, as do most Of the
business men in the world today, that
fraternal insurance is delusive in the
beginning and a huge disappointment
in the end for those who take up such
class OF lite insurance protection. from
the fact that it is not so cheap as it
looks at the start. 1t throws the heav-
lest tax on a man in his old age. when
he is least able to stand it. For in
stance, one of our fraternal societies,
which. however. has done a great deal
of good in the past, T. years ago was
only charging 81 a year for a thousand
dollars of life insurance protection,
While at this time that same protection
at the same age is costing SAL thereby
making more than 100 per cent increase
in II years. At this rate, in ten years
the insurance on $4,000 will be so great
that few can carry it, the society
Will be compelled to take the path of
the Chosen Friends which society has
gone into bankruptcy within the last
two weeks.
For the reasons given in the foregoing
] believe it for the best interests of the
public that fraternal institutions shall
make regular statements, which shall be
audited under the supervision of our gov
eminent. the same as the regular insur-
ance companies are obliged to do If
any companies at all are to be exempt.
and | do not think any of them should
be, in my opinion it should certainly not
be those that are forced from their ma
ture and character to do business on an
unSound basis
1T has now become almost universal
among business men, said Wyman Ellis.
OF the firm of Richards & Ellis, district
managers of the Equitable Life Ito feel
that the only safe life insurance is to be
had from level premium companies: or
in other words, companies that carry a
| reserve for the amount of insurance on
their books. Fraternal and other assess
ment companies do not have this reserve,
and for that reason do not have the
money on hand which they are supposed
to have to meet the obligations which
they are forced to meet
therefore. it seems very unfair that
the former companies. which are abso-
lutely safe and sound, should be COM
PEELED to pay taxes while the latter COM
panies are not obliged to pay anything
toward the support of the state life in
Surance department. Although many
men who have studied the matter deeply
know why these assessment companies
| continually fail when they reach any
material age, yet it might be we'll to
| have such companies render statements
of their assets and liabilities, as far as
| the liabilities can be ascertained. OF
course, as no actuaries are employed by
assessment companies, they do not know
what their actual liabilities are, but,
nevertheless. they could render state
ments as to their financial conditions out
side of giving the liability which they
| are under on account of their policies in
! force"
A. G. McQuarrie, a we'll known insur-
| ance man, who has just returned from
| Europe, where he held conferences with
| the representatives of old line COM
| panies in England, Scotland and France,
declares that the life insurance frater-
| nifty is paying in taxes to the government
money that must sooner or later be dis
tributed among the aged and decrepit
who have been obliged to withdraw from
| fraternal insurance companies on ac-
count of the assessments growing too
| high or the companies becoming bank
| rupt.
Take the Bankers Alliance of Cali
fornia for example," he said. Il was a
member. and when it failed l lost S., 900,
| ON which I had been paying assessments
for five years. the same being true of my
wife. At the of 60 I was obliged to take
a policy with an old line company.
| eft is no wonder that insurance men
! are agitating the proposition of placing
fraternal life insurance companies un-
der state supervision"