Daily capital journal. (Salem, Oregon) 1903-1919, 1907-01-02
.-cAPITAL JOURNALS Editorial PAGE.]

u icle on Sundey. December l6th
shows a comprehensive knowledge o.
life insurance in general and frater
nal life insurance in particular. The
editorial calls attention to some OF
the weaknesses in the present fra
ternal system of home protection and
suggests a definite program of reme-
dial legislation. That the defects
spoken of exist in the fraternal So
cieties to greater or less extent no
one conversant with the present situ-
alton will deny. Neither is there
any division of opinion as to the
necessity for action on the part of the
fraternal life insurance societies
Z that will remove the probability of
excessive assessment rates in the fu-
ture.
The only question, therefore, with
which we have to do is a question of
method. How can the needed re-
forms in the matter of assessment
rates be brought about? This is a
matter that has been engaging the
attention of leading fraternalsts for
years and the knights of Pythias is,
so far as I know. the first society to
recommend that fraternal life insur.
ance societies be placed under the
jurisdiction of state insurance COM
missioners. The last session of the |
National Fraternal society went on
record as being opposed to any leg
islation whatever affecting fraternal
life Insurance at this time. The best
way to bring about the needed re-
'orms in the fraternal societies is to
ct them alone and let them work
'ut their own problems.
The fraternal societies differ from
he old-line life insurance comma
lies in that the fraternal insurance
ontract can be changed only by the
upreme law-making body composed
delegates elected by the members
the society. The fraternal -ocietv
lat Is representative in government
ust take the membership into its
'nfdence on all questions pertain
e to the society. and the problem
4.
'nfronting the fraternal society IS
get the membership TO see the
'cessity of change in the rate OF
'sessment. For example: To bring
'ont a change in the assessment rate
the Modern Woodmen of America
d only Is 1t necessary for the man
cement OF the society 10 see the
'cessity for a change. but a mem
'rshlp OF more than 100000 must
so De made 10 see the necessity for
Increase In their payments Edu- u
uonal campaigns. TO enable the
embershlp Ia sec the necessity for
ange In assessment rates have been 81
rried on by some Of the leading
lternal societies during the mast
'eral years and have no doubt
4. we shall see all the fraternaI 50. vi
TIES collecting adequate rates with
lew years. This condition VIII
Drought about, however. by evo. IN
ION, not revolution.
ihe legislation suggested bv the an
rohlcle would embarrass and ham
the fraternal societies without Sn
wing any good purpose. should
insurance commissioner ha giya,
lSdletion over the fraternal socie nu
ana IN the exercise Of his author
nN minimum rate to he cbarood An
lhe fraternal society, and make =,
CORRECTION Of that rate conditIon Que
Il winch license could be 90
~ untold injury would resnlt
O"ahse could be made in the as one
nen' nl rate until the convening of y
'"Alhg body, and we would '0'
no assurance that the law-mak
oody would meet the condition Sne
'Sed by the insurance commits
y ana should they fail to do 90
ra'ernal societies affected wouId she
naele to continue to do business
lliiOTnia. h,
d iraternalist / am opposed 70
ference with the fraternaI 60 ~
: IN their efforts to solve the r.,
proolem. and as a member % me
california legislature I SHAH
uously oppose the suggested 10
"'lon, Very truly yours, j n
: state deputy head consul tO, was
'rh'a and Arizona. NIodasr
men OF America. Hollister ~ -
Alw