Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1905-01-11
BENEFICIARY SOCIETIES.

Governor Toole, in his message to
the legislature, renews his recommen-
datlon made two years ago as to the
placing of fraternal beneficiary socl-
cues under state supervision. In the
former legislature the matter w&s
passed up as something very difficult
TO handle and the governors recon
mendation is likely to receive scant
consideration at the present session
for the reason that it would be visor'
ously opposed by the different socl-
cites of the state, whose membership
will aggregate many thousands.
Owing to the benevolent character
OF these societies there is strong OF
lection to placing any tax or embargo
upon them in this state, the conten-
ton being, and which seems indisput-
able, that they exist as charitable en-
terprises, distributing their benefits
broadcast and in no way operating
as business enterprises.
The Butte Miner opposes the gov
errors recommendations IN lengthy
editorial and among other thingstakes
ISSUE as follows:
Governor TOole is in error in re-
ferring to fraternal beneficiary sOcl-
cites as business competitors OF the
old line life Insurance companies, Tor
while the latter are strictly business
institutions, operated for profit, the
former are eleemosynaiy ASSOCIATIONS
representing nothing but the distribu-
ton of charities along definite lines
of protection.
"The old line life insurance COM
pany is creditable and praiseworthy
institution, but it is business en-
terprise from all points OF view, while
the fraternal beneficlal. society is
in the broadcast analysis OF the TERM
charitable concern.
ITO place fraternal insurance I'M
der state supervision, with all tnal
might imply, would seriously cripple
every organization Of that character
operating in Montana, and probably
work a serious injury upon their mem
bership.
Neither two years ago nor in his
present message did his excellency
attempt to show in an argumentative
way why the plan Of state supersis
ion would protect the policy holder
of fraternal society.
"State supervision would no doubt
indirectly aid the old line life insur-
ance companies, in that it would COM
pei fraternal socieles-doing business
on a cost basis-to raise their rates..
| f0 hot fNf
bership beyond the reaCn of thousands
of poor men who are now able to
carry insurance-compelli those
who would protect their loved ones tc
pay as much for their insurance as
the policy holders in the old line com
panies.
There are, for instance, many in
dividuals who belong to a number o.
these fraternal societies, carrying
therein from ten to fifteen Thousand
dollars in insurance, at cost the!
are able to meet; whereas, the rates
charged by the old-line companies
would compel them to reduce thel
insurance to policies of from two t.
three thousand dollars, and thus leav'
their families inadequately provide'
for in case of death.
There is no reaSOn-aSlde IRON
the benefits which might accrue to tn
old line companies-why the fratc1
nal organizations should be subjecte
l to state control and taxation.
! 1.-The Miner believes in the efficac
of insurance, as provided for unde
;. the methods of the old line companie
and under the system adopted by tn
r rraternal beneficiary societies; bu
: the distinction between them is yer
o broad one as to certain lines of insu
;, ance, each filling a field peculiarly ii
own.
t. "The Miner hopes that while tn
governor may be fully sustained
q his many excellent and praiseworth
;, recommendations, and receive I'll
% hearty cooperation of the legislator
in all matters pertining to the welfal
n of the state, that the honorable la,
n makers of the commonwealth ms
deem it wise-as they did two yea
y ago-to ignore the proposition
n placing the fraternal beneficiary SOL
e cites under state supervision, thus pr
N tecting the membership of such orga
izations from a persecution they ha7
= not invited and do not deserve"