Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-08-21
The Richie Corrugated Culyert Co.
oskALoosA, IOWA.

time argue the members of the insur-
ance commission Inc membership
cannot be increased forever and some
of the older fraternal companies are
already beginning to reach the limit.
Here is about the way the state aud
itor, members of the insurance CON-
mission and officers of some of the
older fraternal insurance companies
figure the matter out. The six frater-
nal insurance companies having the
largest membership have rates Of
from so cents to 80 cents per $1,000 of
insurance for members from the age
Of IS to "a years, the assessments be-
ing about monthly, or a rate of from
Sc to $1,000 a year per $1,000 of insur-
ance. At these rates the person pay
ing Sc year would have to live and
remain in the order and pay dues 16T
years before he would pay into the
fraternal company as much money as
the fraternal contracts to pay back to
his heirs. The person paying the
$1,000 year on the 80 cent rate would
have to live and pay assessments 90
years to pay in the $1,000 his heirs
would receive: The only source of rev.
enue of fraternal insura..oe company
is the assessments from its members.
Few have a reserve fund which they
put out at interest, and the reserve
fund must in the first instance come
from the members assessments. Since
no one since Bible times has been
known to live 1877 years or even 80
years after having reached maturity,
those who are taking this side of the
case in the controversy over fraternal
insurance rates argue that such com.
panies cannot long exist and pay their
bills, unless their rates go up. Fur
thermore, very large per cent of peo-
pie die in middle life and early life.
Since those who live to the extreme
limit of the years allotted to man fail
to pay in as much as the society will
pay their heirs when they die,
where" ask the members of the Iowa
insurance commission, will the soci.
ETY. secure the remainder of the
amount which it has contracted in the
members? 2"
Opposed to Change.
But while this matter is very clea:
in the minds Of the insurance commits
sion and state officials, and is no doubt
apparent to every member of the leg
islature, the fact is that the member
ship of the fraternal insurance com
panies are opposed to any change. The
deputies and solicitors are opposed be
cause they want to write insurance al
the low rate. They can get more mem
bers and make more money at those
rates. The officers of the younger SO
cieties want the low rates continued
for their stock and trade is their low
rates, which is, simple as long as they
are young and rapidly taking In new
members. The grand lodge me sting:
of these orders are composed of dole
gates who are chiefly the deputies ant
agents who do the soliciting. The rate:
can not be voluntarily changed by the
orders for the reason that the dele
gates are always members who are
opposed. The change, if any, must b
made by the legislature. But out o
a total membership of 100000 in al
the fraternals in Iowa, there are 200
900 voters, and these are ready to ust
their influence at the polls if the legis
lature proposes to do anything The in
f1uence of these 100000 is such, how
ever, as to produce a wholesome fea
in the breast of every legislator t
such an extent that he will oppose tn
proposed law as soon as it is intro
I duced.