The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-07-08
WHAT OTHER PEOPLE THINK
The Royal Arcanum.

To the Editor Of Tho journal.
The recent action OF the supreme coun-
ell of the Royal Arcanum in advancing
the rates of its assessments to from 40
to Is per cent has very naturally ELECTED
a great deal of discussion and no little
criticism from a very considerable per
cent Of its members. That the prevailing
condition Of the order fully justified this
action on the part Of It's management.
there are no grounds for discussion. With
an annual deficit in Its treasury that must
inevitably increase with each succeeding
year, under existing conditions, 1t was
manifestly clear that something must be
done to save the order from ultimate
bankruptcy. There were but two ways
by which this impending disaster could
be averted. One was to advance the
regular monthly assessment Of its mem
bers to an amount that would be ade-
quate to meet its growing deficit and to
create a reserve or surplus to meet all
further contingencies. The other was to
levy extra assessments from time to
time. y, as might be required to provide
for its increasing mortuary demands To
my mind the supreme council selected
the best and most business-like method.
If all present members of the order will
readily respond to the newly imposed
conditions, and healthy increase Of new
111CulOciS Cdl .UG ludlHIdlu0u,S-.l II seems
reasonably sure that the order will be
kept on a secure footing. Whether these
necessary conditions can be maintained,
1t Is difficult at this time to definitely
predict Time alone will tell AS a per-
sistent member of the order, who is APP
preaching the period where he will, ac-
cord1ng to the Oser theory be eligible
to the chloroform route, feel that I
have an even chance to beat the order,
and will try to put up enough to keep
me in good standing for few years
more. have no criticisms for the mem
bers Of the supreme council who met a
business problem In an intelligent and
business-lik like way. reserve my criticisms
for the promoters of fraternal insurance
| who fail to recognize that in it's last
analysis life insurance is business prop
osition, and that the hope Of ultimate
success can be realized only by the en-
ployment Of sound business methods To
! establish basis for permanent life in
surance, experience tables of mortality
must be reckoned with. The universal
failure Of all fraternal societies to do
| this has invariably resulted in conditions
| that have overtaken the Royal Arcanum.
They build on false premises. They hold
out false and delusive hopes by offering
life insurance at rates that an experience
| OF almost a hundred years has proven to
be inadequate. What wonder is it then
that so many persistent members of the
Royal :Arcanum are registering such Wig
orous kicks against the increased rates?
They were importuned to enter the order
in its early stages under an assurance
that its prevailing rates would be per-
manently maintained, and now when they
have reached an age where their earning
! capacity has been minimized and they
cannot get insurance elsewhere. they find
themselves up against prohibitory rates.
The perpetuity of any business depends
upon the faithful application of business
principles. Life insurance is no excep-
ton. 60: b. c., Gibbons. s.
South Haven, Mich, July t, 1905. %