The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-12-24

One-thtrd OF the death claims the
: last year were on short-term
: members.
Commenting on this item, Geo. A.
Bangs of this city today said:
The Patricians began business Sept.
1, 1897, and is therefor trife more
than nine years old. Jan /, 1906, it's
membership was something less than
10000, and it had insurance outstand-
ing of approximately $4,000,000 which
means that 10000 men were relying
to the extent of $4,OOOOOO upon this
society for protection to be afforded
at death to their widows and children.
The society promised this protection
at what is assured its members were
level life rates, but which rates either
Intentionally or otherwise were grossly
inadequate. AS a matter Of fact the
society was promising a level life
Insurance at but temporary cost. The
premium rates of it's members furnish
ed the society income sufficient to
cover current costs alone, and for such
income the society was pretending to
furnish level life insurance.
"As an illustration of the rates:
At the age of twenty-five the society's
annual charge was $S.40 or 70 cents
per month, whereas the minimum rate,
without allowing for expenses, based
upon the national fraternal congress
table (Which is the most favorable
mortality table in existence), with in
terest at four per cent, is $3.50 or
$500 greater than the society charged
FOR mortality cost alone.
"The experience of this society is
the history of every fraternal society.
The only revenue of the society with
which to pay its death losses is de-
rived from the contributions of its
members, and if the membership con-
tributes upon the temporary or cur
rent cost plan, the society can furnish
but temporary or current cost insur,
ance, and as inevitably as the danger
or risk of death increases with IN
creasing age, so must the society as
and its membership grows older in
crease the rates of contribution.
"The only remedy is that attempted
to be adopted by the Patricians-ie:
to increase the rates to a level life
basis and when the society receives a
evel life income it can furnish level
life insurance, and it can do so no
sooner.
THE conditions and requirements of
This society are but typical of hundreds
Of the fraternals. Out of more than
five hundred of such societies which
are promising level life insurance
there are less than one half a dozen
that are receiving level life incomes
or incomes sufficient to permit them to
redeem their promises. Insolvency has
not sooner overtaken them simply be-
cause during the earlier years of their
existence their death loss is favor
able because the membership is young
and the current cost is light; but
with increasing age the deaths in the
aggregate and in proportion to men,
bers will rapidly and materially in
crease, while the number to contribute,
in proportion, will decrease, although
in the aggregate there may be an in
crease.
Delay should not be permitted in
the adoption by every society of an
adequate rate, and if the society
through the incompetency or coward
ice of it's members or officers neglects
to adopt an adequate rate the legis-
lature of the state should by law conf
pei them to do so. This is because as
the membership grows cider and rates
become prohibitive, it also becomes
more difficult, and finally impossible
for them to obtain insurance or pro-
lection from another society or COM
nanr"