Los Angeles herald., 1905-06-19
PROPOSED CHANGE IN RATES
STARTS TROUBLE
MEMBERS THREATEN REVOLT
Fraternal Insurance Order Increases
Cost of Protection and Large Pro-
portion Of Membership Be-
comes Dissatisfied

lneTb 10 IIOublt DlGWlnB III NilS iuiihS
of the Royal Arcanum, said to be one
of the largest fraternal insurance or
ganizations in existence which threat
ems the order with at least a material
decrease in membership, If not In gra-
yer results.
It Is the proposed raise in rates of
insurance, especially directed at the
older members, which threatens the re-
volt and withdrawal of a large portion
of the membership.
Recently an order was issued by the
governing body announcing a radical
raise in insurance rates, effective Octo-
Der 1, the announcement being made to
each member through the Bulletin, the
official organ of the order.
Membership Protests
The effect of the announcement has
been a protest from members through
out the United States and Canada, ac-
companied by threats that if the raise
is made effective Withdrawals by the
wholesale will be made.
This is the second crisis in the his
tory of the order, the other occurring
in 1898, on the occasion of the advance
ment of the then existing rates of insu-
rance. The difficulty then resulted in a
considerable loss in membership, but
the order was not so seriously injured
thereby as to materially affect its pros
perity, and it Is estimated that it has
today nearly $4,000 members.
The storm center is Boston. the Off
cial headquarters of the order, and 1t
is said that protests are being sent in
by the members at an alarming rate so
plentiful, in fact, and so threatening in
tone, that the existence of the order is
said to be hanging in a balance.
Many members talk freely of the re-
volt against what is termed an outrage
upon the membership and revolutionary
tactics, ranging from Withdrawals to
injunction proceedings. are openly dis
cussed. The officials. on the other hand,
appear to have the situation we'll in
hand, and calmly await the approach
ing crisis with slight fears of the ulti-
I1dIe result. IL CdlIlOL De tSuitl, lOW-
ever, that the dissatisfaction among the
membership is very nearly general, and
probable action in the interim cannot
be definitely forecasted.
Local Members Do Not Talk
Local members are not given to dis
cussing the situation with any great
freedom, yet the existence of dissatis-
faction Is easily evident even in their
reticence. They are waiting the turn
in affairs which they hope will come be-
fore October / and lead to an amicable
adjustment of the trouble without pre-
judicing the order.
In the east, however, the membership
is taking up the discussion of the pro-
posed change and remedies suggested
to prevent the radical change becoming
effective and the consequential results
that portend disaster in the order.
1t is said that under the old rules,
members 21 years of age paid 90 cents
per $1,000 of insurance. This rate rises
on a scale under the proposed change
until at the age of 65 years the mem
ber is asked to pay $64.32 per $1,000 Of
insurance. This is a radical raise over
the old rates established prior to the
1898 raise, and is likewise pronounced
increase over the 1898 raise.
1t is said that the proposed change
in rates will only affect the older mem
bers, but the contention of the younger
ones is that they will not only have
to pay this increased rate should they,
too, live to the advanced age. but might
be subjected to still further raises. 1t
is on this argument that the unaffected
members are enlisting with the revolu-
tionary forces, and the alarming and
almost unanimous protest of the mem
bership shows that the extent of dis
satisfaction is entirely too great to be
lightly considered.
Supreme Officers Statement
In published statement in explana-
tion of the raise in rates, Supreme Re-
gent Howard c. Virgins says:
1.-THE improved system of rates, the
most complete and perfect system in
existence, is submitted to our member
ship with the confident belief and ex-
pectation that it will merit the approval
of all thoughtful members"
Supreme Secretary w. o. Robson also
issues a statement as follows: 1.-THE
supreme council, in adopting the pro-
posed rates, did what they believed to
be for. the best interests of the organ
ization. Some of the best actuaries in
the country have endorsed the new
rates and am confident they will prove
satisfactory when fully understood"
John Haskell Butler, one of the
ablest members of the Boston bar and
chairman Of the committee on laws of
the order, explains the proposed raise
in the following language:
"A problem of vital importance con-
fronted the Royal Arcanum. There is
an essential weakness in a protective
organization which places the burden
of support unequally upon its members.
Hitherto 1t has been condition of the
older members leaning upon the young
er, the latter paying more and the
former less than the true cost of their
otection