The Caucasian. (Shreveport, La.) 1900-192?, 1905-05-14
THE FRATERNAL SYSTEM
REMARKABLE RISE OF CO-OPE-
RATlE EINSURANCE
An Interesting Article From the Pen Of
Walter Allen Rice of Buffalo, in
the New York Herald

The Knights of Honor Reporter says
In its issue of March 18th the New York
Herald gives space to we'll written
article from the pen Of Mr.. Walter Al
len Rice. of Buffalo, y. v, on the s;;L
iect of fratcrnal insurance. While this
voices we'll known facts and conditions.
il is timely for the rcasnn :!la. II COM
bireS data ard informatior vf inte> est
alike to fraternalists and the general
public. From Mr.. kice> commune :t:cn
tie following is reproduced:
l.. the United States this cooperative
idea took root thirty->iN years ago,
when a few working men Of Meadviie,
Pa. under the leadership of John Jordan
Cpchurcll. organized the Ancient Order
of United Workmen
There was no previous experience IN
cooperative insurance by which the
founder of the \. O. /. W. could be
guided save that Of the friendly socie-
ties of England The only mortality ta-
bic was that upon which the old line
companies based their premium rates.
They knew nothing of the science Of life
insurance. but simply united for mutual
protection regardless Of age, health Or
occupation. agreeing to pay alike and
share alike.
At first the sum of one dollar each
from all members was the amount to be
paid upon the death of a member to the
widow and orphan. Others joined this
little band, and after a time the maxi
MUM amount to be paid upon any death
was set at S2.ooo Under this crude
plan started the A. O. I. W., which has
grown into an army Of four hundred and
twenty-five thousand and has paid to
benefciares in thousands Of bereaved
homes in this country SI3oooo,ooo. or
S5ooooooo more than any other society.
The evolution and development of the
cooperative insurance idea has been
most rapid and marvellous Let us bridge
the gulf of thirty-six years and note the
result, from the latest re-
ports:
Jan. I. 1905. 200 societies
with membership Off,. 5000, 900
Insurance written 1904. =. 81 ,ooo. .ooo,oo
Ins. in force Jan. 500. .OOO, 900
.ASSNtc Co'ooo'ooo
In 1904, income of ..... 100000
Paid widows and orphans
III lOO4 Oo,OOO,OOO
Sixty-fve million dollars disbursed by
the two hundred fraternal societies
among the thousands of homes in one
year. at the rate of more than $5,ooo,ooo
monthly and $1.25oooo weekly!
Some of the principal societies are the
following. in chronoligal order: The
Knights of Honor, organized in 1873,
has membership of $4,000 and has paid
in death benefits $83ooo,ooo: the Royal
Arcanum. organized in 1877. has a men,
bership of 100000 and has paid in bene-
fits $oo,ooo.ooo the Knights and Ladies
of Honor. organized in 1877. has 10000
members and has paid in benefits Sal
100000; the Modern Woolmen Of
America, organized in 1888. has 66oooo
members and has paid in benefits S42.-
ooo,ooo This society has the honor Of
being the largest fraternal beneficiary
society in America.
The Knights of the Maccabees, Or
ganized in 1883. has $4,000 members
and has paid in benefits S21,ooo,ooo; the
National Union, organized in 1881, has
81 900 members and has paid in benefits
$2ooooooo; the Independent Order of
Foresters, organized in 1874, has 100000
members and has paid in benefits $16,-
100000: Woojmen of the World, organ
lied in 1891. has 10000 members and
has paid in benefits $15,ooo.ooo.
Many important lessons have been
learned by experience since the A. 0. u.
w. started in 1868. The at.,ve societies
have materially changed their plans
since they were organized. Nearly all
are now operating upon adequate tables
of rates and work either upon the
emergency fund plan Or have step rae.
y * * 3 x *
This article in referring to the "fra-
ternal SYSTEM does not include the as
sessment associations and companies,
but refers only to that class Of secret
beneficiary societies which do business
upon the lodge plan and provide life in
surance payable at death of members.
The latest reports from insurance de-
partments show that the fraternals have
been making wonderful progress.
Up to 1868 the 'old liners provided
the only life insurance that could be had
and held the field In 1868 the "frater-
nal system was Graded in the State of
PENNSYLVANIA.
TIL, 1,r-r ~ Na,- No-1- of