The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1905-08-26
R. A. COMMIT TEE
REPORTS ON RATE
Justice Mahlsn Pitaey and
Willard Cutler Are In
Doubt If the Figure Is
High Enough.
MINoRWY'S OPINION


ERING OF AGE LIMIT AND
STRICT MEDICAL ExAMINA-
TIoN.
With minority report the committee
recently appointed by Leantaka Council
No 93S Royal Arcanum, of Morristown,
to investigate the new rates. has com
pleted its work and win submit its report
al the meeting. September q The com
mittee was asked to look into the new
Pitney. former law judge Willard W.
Cutler aud Ira Mowrey AIr. Mowrey
viii present a minority repsrt The com-
mittee was asked to leoek into the new
rates adopted by the supreme council of
the order. and compare the mortality
tables compiled from the experience Of
the order as a basis Of the new rates
with standard aer:ality tables adopted
by other insurance icstiiutioDs. inyesti-
gate the rates and options in order to de
termine whether theg are reasonable y
amount and at the same t;ne adequate
to enable the order to fulfil its obliga-
tions.
Justice Pitney and Mr.. Cutler say in
their report that they are convinced the
new rates are reasonable and that they
are based upon the actual cost and value
of the protection.
mo fraternal order or other insti-
tuition er association can permanently
give life insurance or its equivalent at
less than its actual cost" says the re-
port. IAN the so-called old-liae insur-
ance companies, in fixing rates for insur-
ance, include a considerable amount
(called a 1oadingD beyond the estimated
cost of insurance in order TO meet or
ganization expenses, agency commissions
and other extraordinary charges that are
not required in our order. Oar new rates
contain no loading beyond the actual in
surance cost except to insure the factor
of safety and except the slight leading Of
the younger members in favor of the
older.
The only question concerning which
your committee is in doubt upon this
point is whether the new rates are quite
high enough to be perfectly safe and se-
cure. We are assured by the aetuary
that they are, and are willing to rest up
on this with the additional assurance
that if experience demonstrates thai the
rates are not quite high enough they
may be slightly in the future when ezpe-
rience demonstrates such increase to be
necessary.
The dissenting member Of the commit
tee, Mr.. Mowery, looks upon the situa-
ton as a crisis. which he says must COM
mand the best intelligence, the most de-
voted loyalty and strongest + fernal
feeling.
''The vital question pressing upon US.
says Mr.. Mowery, is whether the fra
ternal spirit and principles will have
proven such bulwark Of strength dur
49, ~ 4x,-o,,+,, eax,a, .,aors of o,r ax;st
ence shall be continued, or shall we, in
SO short a time and with so little oppor-
tunity for deliberation. adopt the new.
schedule of rates, and change the whole
principle of the order from fraternal to
a eoId-blooded business proposition such
as is embraced and understood in old line
legal reserve life insurance And when
the choice is left, to persons whom we
hope to have brought into the folds of
the Royal Arcanum, between one Of the
old line life insurance companies, per-
son of average intelligence would elect
one of the old line life companies. And
as the success, indeed the very life of
the Royal Arcanum depends upon its
new members. whether the new rates are
adopted or NOT. hold We must do that
which viii most likely bring them within
our fold
i hold that the new schedule of rates
is inadequate to establish the oyal Ar
canum permantIy upon new basis, and
| to adopt it would still imply, and. think
| may say, absolutely warrant the as
surance that still another increased rate
or increased assessment would have to be
made
Il would suggest, in the admission Of
new members tho lowering of the age
limit to 40. ! would also have more
careful scrutiny Of medical examinations,
and have the order withdrawn, 50 far as
new members are concerned, from Ger.
| tain sections Of our country In the South
Atlantic States