Omaha daily bee., 1905-07-09
ECHOES OF THE AHTEROON


Special Deputy supreme Regent r. Lind
say Grler OF Pittsburg, Pa. was in the
city during the last week and addressed
a largely attended joint meeting Of the
various councils Of the Royal Arcanum
OF Omaha and South Omaha on the subject
Of the recent advance Of rates in the Ar
canum. He has been making a tour of the
west in the same general interest. lie Is
Of the opinion that as soon as the new
system Of assessments Is fully understood
by the members Of the order that there
will be less criticism Of them. He said TO
this department OF The Bee: The inn
preston has gone out, and with some ap-
parent reason at first thought, that the
readiustment of the rates Is especially hard
upon the older members OF the order. This
impression is entirely wrong. The older
members have been carried at a ridic.
ulously low figure all these years and IL
is virtually the young members who have
carried the burden Of the insurance Al
the outset the older and earlier members
were insured at the 5000 figure, while
veiv large proportion of the younger
members have carried the lesser rate, but
at the same time have had 10 pay for the
mortality among the older members on
their 5000 certificates. II has taken years
of experience TO arrive at a correct solu-
ton of the mortality tables in orders like
the Arcanum and any adjustment that
would apply to the new and younger
members could not be made TO APP
ply to the members Of more ad-
vanced years. Hence in order to equalize
the burden it became necessary to adjust
the rates so that the burden would fali
equally upon all. with increasing years
among the older members the insurance
risk became more oppressive and in view
of the fact that very few Of the older
members would drop out, the burden be-
came more and more oppressive There are
at present In the order over 10000 men who
have passed the age of IS years, and the
mortality In this group naturally increases
with advancing years. 1t will be remem-
bered that at the time OF the readjustment
of the Arcanum in 1898 that 1t was stated
at the time that the measure was adopted
merely as an expedient. reserving the
right to make extra assessments II found
necessary. No extra assessments have been
made in that time and while II is true
that an emergency fund OF over 1000 900
has been created. yet the older members
have not paid anything into that fund,
though many certificates have been paid
out Of II for the older members The
increase in the rates as made at the last
meeting OF the supreme council was not
a sudden conclusion, but one that is the
result of three or more years of the most
careful consideration. 1t was deemed
better for the order TO increase the rate
TO a safe basis rather than to impose extra
assessments for in that event the burden
would again fall upon the younger MEM
bers. The assessment was placed at the
attained ages because Of the necessarily
impaired risks, particularly among the
older members. AS II now is the older
members continue their insurance, paying
only a fair rate without further examina-
ton, while the incoming members, fresh
from their medical examinations must pay
a proportionate assessment. Under the re-
adjustment the rate per $1,000 in the Ar
canum is but little over 50, while in the
old line companies it is something over
Sl4 per $1,000 on the minimum ages.
THE experience of the Royal Arcanum
is that which must sooner or later come TO
every fraternal insurance order. The SUI
preme council preferred to take UP the di-
lemma at once, realizing that it would have
to meet the proposition sooner or later. 1t
is probable that we shall lose many men,
bers from the fact that the proposition is
not thoroughly understood by all the MEM
bers of the order. l would like TO urge that
the old and faithful members of the order
do not act rashly in this matter. The new
order of things does not go into effect un-
til October l. 1905. All members will then
go into the new continuous rate at their
attained ages. and l would advise a care
full study Of the tables and options. They
will have until April l. 1906, to definitely
decide which of the options they prefer
availing of. In brief, the Arcanum by this
movement has placed itself upon an endur-
ing foundation. There will never be another
raise in the Arcanum assessments, That
matter was thought out carefully in the
compilation Of the tables, which were made
by the best actuaries in the country and
after years of careful study of the ques-
ton.
Another thing I would like to add, is
| that the impression has gone out that the
expenses of maintaining the order arc very
| large, too large, in fact, for a fraternal
| organization, Such a presumption is err
roneous. True, the reported expenses OF
the order for the year 1904 are put at APP
proximately $4,000 But you will observe
that the report shows that there is a bal
ance of nearly 100000 in the expense depart
ment of the general fund, so the total ex-
pendltures for maintenance were really but
$4,000"
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