Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1906-11-13

notwithstanding this fact, without |
medical examination or other action
than the mere application therefor,
these men may transfer to the new
plan, which in the judgment of all is |
permanent and sound.
The new plan is the application of |
business principles to fraternal insur- |
ance. 1t recognizes the fact that has
been borne in upon every society, |
that a member of fraternal insur-
ance company lives no longer than a |
policy holder in an, old line company,
and the death losses which must be
met and paid by the fraternal is just
as great or greater than that of the
old line company. The fraternai in
surance company, in the very nature
of things, cannot furnish life insur-
ance at less mortality cost than the
old line companies; as matter of
fact, as disclosed by the statistics, the
mortality cost of the average fraternal
is greater to an appreciable extent
than the old line company. It is in
the items of expense that the fraternal
has an advantage impossible for the
old line companies to overcome. The;
average cost of obtaining new bust
ness in the fraternal societies is from
IS Ito $40 per member as compared
with which, in 1904, as disclosed by
the report of the Armstrong commits
sion 1.-THE statement being made by
the companies themselyes) the cost OF
writing new business in the old line is
from $50 to 5000 per policy. The fra:
terna1s distribute their benefits at a
cost of $50 per thousand while the old,
line company runs into the hundreds,
Iof dollars If the fraternals would
adopt rates which would insure conf
dence in their permanence, their
growth would be greater than in the
past and in their field they would be
powerful competitors to the old line
company, but until they recognize the
true principles of insurance and adopt
Irates based thereon, they cannot be
seriously considered as permanent in
Isurance concerns. The rates OF the
new fifth class are based upon the
American experience table with inter-
est at 31k per cent. No one can
seriously question the conservatism of
either the table or the interest rate
and because thereof the insurance
commissioners, of the various states to
whom the plan was submitted inn
lmediately approved the same. The
rates adopted are materially less than
the rates for similar policies issued by
the old line companies which differ
ence5 is accounted for, solely in the
| Item Of expense. The old idea of fra
ternalism required and approved the
conf1scation of the accumulati of
all Iapsed or retiring members. ANY
member who, either through misfor-
tune, old age or poverty, found him
self unable to make his payments lost
all interest in excess payments prior,
thereto by him made and in the ac.
|cumul atoms Of the institution.
a bare statement Of the PROPOSE
ton establishes Its fallacy. The new
fifth plan requires each withdrawing
member to furnish new one to take
his place in order that the society may
be perpetuated and for the excess OF
his accumulations over the amount re.
lquired to obtain such new member,
there is granted him at his option
either paid up or extended insurance
Plan Of Accounting. ..
Strict account is kept between all
plans OF the fifth class and any and all
savings In mortality, expense, interest
Tor investments are computed and
Icredited on December 81 of each year
and the sums SO realized are devoted
to the payment of the premiums Of
the members whenever the same
equals the amount of a monthly as
lsessment. By this plan ali of the
benefits Of the post mortem are added
Ito the ante-mortem method of COM
putting premiums. Automatically the
institution grants insurance at the
minimum safe cost, but furnishes no