The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-26

a plain abatement OF the agreed method OF
computing profits applicable to dividends
and OF Individual dividends" derivable
from profits. and lodge in some proper quar-
tor the right to examine the accounts?
NEW YORK. June "a. B. t. h.
Tho Case OF the Royal ArcAnum.
To THE Ep,roR OF THE suN-Sir: Tho
action OF the supreme body OF the Royal
Arcapum In recommending the raising OF
rates Of old members OF tho organization In
so radical a way a. 10 suggested shows clearly
that the action could not have been taken after
proper consideration. 1t states that actuaries
have been consulted. This ! do not doubt.
but actuaries Of ability and experience who
understand the insurance business could not
have been consulted. for no actuary who is
interested In sustaining the life of the or
ganisatlon would have made the recommend
ations that they have made.
l oan 500 where these recommendations
will eventually wipe out the existing organi-
sation. 1t is nothing moro or less than
freezing out process. which was prohibited
under tho laws Of the different States. on the
old plan of amalsamation Of insurance com
panles, which occasioned 80 much disaster
among the insuring public from 1874 to 1877.
and which prevented such amalgamation by
methods which froze out It's old and i'm
paired risks.
This new plan means loss at once Of good
blood that can secure insurance elsewhere.
and the retaining Of membership In the Royal
Arcanum OF those who are 90 impaired In
health or age that they cannot secure insur-
anoe In any old line company. thus creating
even q more excessive mortality by an In
creased hazard than would otherwise be
experienced. consequently putting a greater
burden upon the existing members than 1t
can possibly stand, even at Its Increased
rates.
l have noticed at different times the criti-
clsms In the insurance journals upon the
management Of the Royal Arcanum. Yet
have not been Influenced by them. and have
advised friends to secure insurance In the
order. because I believed that this plan OF
new blood without the expense that is re-
auired by the old line companies for new
business was plan that would meet the re-
quirements. And SO 1t would II It was carried
In accordance with the principle established
by the Royal Arcanum
II the death rate is too great. then special
assessme nts should be made upon the entire
mem be rship, and thus protect in brotherly
way tho entire order. as was contemplated
In the organ ization OF the order. Instead OF
consenting to such means as will act as an
embargo upon the life OF the order and dis
tribute its available insurance risks among
the insurance companies Of the country. who
are prepared to stand by their contracts.
Az view 1t now. the death knell OF the
Royal Arcanum has been sounded. II this
freezing out process" Is put into operation
and unless retraction Ia made the member
ship OF this order will dwindle to such pro-
portions az will be unrecoRnizable In COM
parison with its present proud position among
the insu rance fraternities. and q new organi-
cation will spring up among the councils,
composed Of men imbued with the principles
tad h~ kal;a
that the Royal Arcanum means an honest
administration OF its affairs to all existing
members, and, above all. that those who have
maintained the integrity Of the order by
prompt payments to the benefciaries OF the
deceased members shall not be deprived OF
the benefits which they 30 much need In adj
vanced years.
The whole matter is one that never should
have been delegated TO body Of inexperi-
enced men to tinker with If the organiza-
ton cannot pay its obligations In accordance
with Its contracts. the members should stand
or fall together as brothers In q common cause.
And more honorable way would be an appli-
cation for q receiver and proper legal lioui-
dation OF It's affairs. rather than such an un-
just, discriminating measure should be even
suggested by inexperienced and incompe-
tent mon, who ought to be expelled from the
order for presenting so vicious and selfish
measure.
have been identified with the inanranoe
business since 1871. and am still young man.
having been identified with the Royal Ar
canum about twenty years. having gone into
it more particularly upon the solicitation OF
my friends
have not been drawn to its social func-
tions, and shall be much disinclined to ap-
preciate these features In the face OF such a
graspng proposition to freeze out those
members whom they are In honor bound by
fraternal ties to protect
Therefore. II this plan goes into effect, |
shall place my insurance In an old line com.
pany and advise as many OF my friends who
can get insurance elsewhere to do likewise
remedy can be found In making q proper
assessment upon the younger lives. and not
allow them to carry their insurance at loss
to the older members. and such rates for new
members can be established that will put new
blood into the organization on q paying basis,
The medical staff should be reorganlzed and
a more thorough medical examination re-
quired, and . closer scrutiny of applicants
as to the physical and moral hazard. To
my knowledge men have been admitted to
the order who could not pass an examination
In any life insurance organization.
II plan were presented by which the old
members would be assessed proportionately
to keep the loss ratio down. there would not be
complaint made against paying the In
creased assessments. which became neces-
eary In order that the old members, who stood
BY the organization since It's early day.
should be able TO secure the benefits for which
they had been paying for so many years.
The Supreme Council has right to levy
such special assessments upon the entire
membership as may be necessary to meet
any emergency in an increased mortality TO
the paylnR OF every dollar Of liability to its
oldest member. but 1t has no right whatever
to establish rates to existing members that
shall force them from the order at the age Of
as. A. a member OF that order protest most
vigorously against such an outrage upon
the older members AL,
fRw YORK. June -. Longfellow Council,
Sharp BoyS Inference.
From the London Daav Nstrs
The hoy had 10 descrIbc our Iord's 0rst r,,,s ,,.