Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1905-05-12
.fRATfRNAI ANDOlDlINf

saso - esOsS p ~ S1a0
Societies and the
Companies
In the United States the co.opera-
tive idea took root thirty.six years
ago. when q few workinqmen of
Meadvil!e. Pa. under the leadership
Of John Jordon Cpchurch, organized
the Ancient Order of UnitedWorkmen,
says Walter Allen Rice in the New
York Herald.
There was no previous experience
in cooperative Insurance by which
the founders of the A. o. Q. W.
could be guided save that of the
friendly societies of England. The
only mortality table was that upon
which the old-line companies based
their premium rates They knew
nothing Of the science of life insur-
ance, but simply united for mutual
protection, regardless of age, health
or occupation, agreeing to pay alike.
At first the sum OF 81 each from all
members was the amount to be paid
upon the death of member to the
widow and the orphan. Others joined
this little band, and after q time the
maximum amount to be paid UPON
any death was set at $4,000. Upder
this crude plan started the A. O. U.
W., which has grown into an army of
four hundred aad twenty-five thou
sand and has paid to benefciaries in
thousands Of bereaved homes in this
country $3.50, 600, 600. or $50, 600, 600
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-s years
and note the astonishing results from
the latest reports:
January /, 1906, 200 go.
cieties, with membership
of 5000, 900
Insurance 1904, insur-
ance written 81, ZOO, 600, 600
Insurance in..force Janu-
ary 1900, 600. 600
Assets so. 600 600
In 1904, income of IS, 600, 600
Paid widows and or.
phans in 1904 s., 600, 600
Sixty-6ve million dollars disbursed
by the two hundred fraternal societies
among thousands of homes in one
year, at the rate of more than So, 900. .
900 monthly and 81, $50, 600 weekly.
This article, in referring to the
fraternal system, does not include
the assessment associations and COM
panies, but refers only to that class Of
secret beneficial societies which do
business upon the lodge plan and pro-
vide life insurance payable at death
of members.
The latest reports from insurance
departments show that the fraternals
have been making wonderful progress.
Up to 1868 the 'old. liners provided
the only life insurance that coulo be
had, and held the field. In 1868 the
'fraternal system was Graded in the
state IF Pennsylvania.
The laws of New York and Of most
states divide life insurance into the
distinct kinds-life insurance COM
panies, generally termed the old
liners cooperative life insurance on
the assessment plan, and fraternal
beneficiary orders or associations By
referring to the comm issioners'
annual report these three divisions
will be found.
The old-iners. the first class, are
organized under law, are business
corporations.
The second class is Cross between
an old-line company and a fraternal
society. Hundreds of these assessment
companies or relief associations have
been organized, but most Of them
have been failures. The latest COM
missioners' report shows only forty
three still in existence.
The third class of fraternsl bene-
fetal orders has proved extremely
popular. For many years the in
surance comm issioners in their an
nual reports have In the eyes of fra
ternalists perpetrated q great in
Justice upon the fraternal societies
by grouping under one head the long
list Of failures of the assessment com:
panies, together with the few fra
ternal societies that have ceased to
do business.
Lees than a dozen fraternal socie-
ties that had attained any size have
ceased business in thirty.six years.
The principal failures are the follow
ing: