The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-02-28

pose SO that the rank receives for
mortality costs but 80 per cent
of the N. F.. c. net rates;
these rates contemplated 4
per cent interest on the reserve and
this amount has not been realized to
this time SO that there is further
deficiency in the accumulation.
The then membership was not re-
rated at the attained ages but on the
contrary the rates were applied there
to as of entry age so that the member
then aged fifty-flve who had entered
ae the age of thirty was rated as the
latter age and paid premiums the
same as though he had Joined the or
der In 19Of~at age thirty; this, of it.
self, shows that there is not an amount
on hand sufficient to maintain the
present rates, hence additional funds
must be raised from some source or
the rates must be re-adjusted.
Question z. Is not the Supreme lodge
and the order at large morally and
legally responsible for the obligations
of the Endowment rank, and if SO, IN
the event of the inability of the En-
dowment rank to meet its obligations,
will not the order be held liable?
Answer. The relationship between
the Endowment rank members and the
order is contractual; the rank enters
into a contract with the member III
the name of the Supreme lodge to pay
his beneficiary a stipulated amount Ii.
consideration of a premium he prom
ises to pay and upon this contract,
suits have been, can be now and will
be in the future, brought against the
Supreme lodge itself; there is nothing
in the nature of charity here; tits a
purely business proposition entered
into between two persons competent
so to do and their rights are fixed by a
written contract; the order at large,
meaning by that the organization or
corporation, is legally and morally re-
sponsible to the beneficiaries of the
members of the Endowment rank.
Question 6. Is it right, just and
fraternal that members of this order
who are not members of the Endow-
ment rank should be considered as
collateral security for the protection
of the insured?
Answer. Yes. This institution, cor
poration, order or call it what you will,
has engaged in this business; to at
tempt to evade the meeting of these
obligations is simply reputation.
There can be no evasion; no divorce
ment, until the institution is placed
upon q sound, scientific and perma-
nent basis; then, and not until then
can we consider ourselves relieved
from the obligation voluntarily as
sumed. In this connection it must be
remembered, that the Supreme lodge
representing not the Endowment rank,
but the entire order has the power to
SO adjust the rates that the rank will
be absolutely safe and sound-and the
liability to the order at large reduc I'd
to the minimum.
Question 8. If this order is to con-
tinue> in the insurance business, why
should not its field be extended to
any and all classes of people as we'll
is Knights of Pythias?
Answer. have not considered this
question. The articles of incorpora-
ton would to large extent control
Question 10. Is it not true that
among the present certificate holde IS
in the Endowment rank there are
those who are not members of the or
der?
Answer. | do not know. 1t is pos
sible that some one member of the
rank may have been expelled from the
order and the fact not reported to the
Office of the Insurance branch.
Z Question II. Do you favor the d.
vorcement of the Endowment rank,
from the order and if so under what
conditions? Have you not had sug-
gested to you plan or theory to brin,,
about such enforcement?
Answer. When the Endowment rank
is placed on sound finan-
tial basis shall be ready
to discuss the question of it's
enforcement from the order at
large; until then the question is not
open. Enforcement prior to that time
is reputation.
What is now desired is sound aal.
permanent financial basis; when that
result is attained, the enforcement OF
the rank from the order may be dis
cussed but not until then. Like all
others who have given this matter
thought and attention l have had I'M
der serious consideration different
plans by which the rank might be
placed upon the desired basis; in this
letter it is impossible to outline them.
Question IL. Will your committee
report fully and in detail the true ac-
tuarial condition of the Endowment
rank, and make unbiased recommends
lions as to the future policy for the
government or disposition Of the rank9
Answer The special committee ap-
pointed by the Supreme lodge at the
1904 convention will report fully and
in detail the true condition, both actu-
arial and otherwise, of the Endowment
rank and will make unbiased recon-
mendations, uncontrolled by fear, fav-
or or prejudice as to the future policy
for the government and disposition
of the rank
The very considerable length of this
communication urges me to speedy
conclusion; realize its many insult
ficiencies; earnestly hope your be-
lief is we'll founded in, wide spread
desire throughout the order to learn
the facts in connection with the En-
dowment rank and Its true relation 20
the order. =
The Endowment rank is temporarily
in most excellent condition; and now